Broker: CGS International
Date of report: July 28, 2026
Excerpt from CGS International report.
Report Summary
Stock Focus: CapitaLand Ascott Trust (CLAS SP)
Action: Maintain Add (Buy equivalent)
Target Price: S\$1.13
Current Price (as of report): S\$0.91
Upside: 24.2%
Dividend Yield (FY26F): 6.7%
- Key Idea: CGS International maintains an Add (Buy) call on CapitaLand Ascott Trust (CLAS) with an unchanged target price of S\$1.13, indicating a potential upside of 24.2% from the current price.
- 1H26 Results: First-half 2026 DPU of 2.53 Scts was in line, representing 41% of full-year forecast. Operating metrics were stable, with portfolio revenue per average unit (RevPAU) at S\$147 and 78% occupancy. Same-store RevPAU grew year-on-year in Japan, UK, and USA, demonstrating resilience despite transitional drags from asset enhancement and divestments.
- Distribution Outlook: Management expects FY26F distributions to remain stable, supported by a pool of retained earnings and undistributed divestment gains, even as recent acquisitions may not fully offset lost income from recent divestments until FY27.
- Transitional Drag & Catalysts: Several transitional headwinds (e.g., asset enhancement initiatives, timing mismatches) are expected to ease from FY27, with Somerset Clarke Quay opening and lower electricity costs in Singapore and Australia from 2027. The Cavendish asset is expected to fully contribute only in 2028.
- Risks: Key downside risks include adverse exchange rates and a potential slowdown in global travel demand impacting bookings.
- ESG Leadership: CLAS is recognized as best-in-class in ESG within its peer group, with 70% of its portfolio green certified as of end-2025 and a target for 100% by 2030. The trust was named “Global Listed Sector Leader” in the hotel category by GRESB for the fifth consecutive year.
Actionable Insight: Investors seeking stable distributions and exposure to hospitality REITs with strong ESG credentials and upside potential may consider CLAS. The report reiterates a BUY call with a S\$1.13 target price.
Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website.
CGS International research website
