๐ŸŽฏ Is CapitaLand Ascott Trust (SGX: HMN) worth checking out?

InvestKaki
06-04

$CapLand Ascott T(HMN.SI)$

๐‚๐š๐ฉ๐ข๐ญ๐š๐‹๐š๐ง๐ ๐€๐ฌ๐œ๐จ๐ญ๐ญ ๐“๐ซ๐ฎ๐ฌ๐ญ: ๐๐จ๐ซ๐ญ๐Ÿ๐จ๐ฅ๐ข๐จ ๐‘๐ž๐œ๐จ๐ง๐ฌ๐ญ๐ข๐ญ๐ฎ๐ญ๐ข๐จ๐ง ๐ƒ๐ซ๐ข๐ฏ๐ž๐ฌ ๐‘๐ž๐ฌ๐ข๐ฅ๐ข๐ž๐ง๐ญ ๐ˆ๐ง๐œ๐จ๐ฆ๐ž

๐Ÿ“Š 1Q 2025 Momentum
Gross profit climbed 4% year-on-year to about S$75 million, fuelled by an 11% lift in RevPAU to roughly US$160. Master leases and guaranteed-income contracts now contribute 70% of gross profit, underpinning steady cash flows even as travel demand normalises.

๐Ÿ—๏ธ Divest-at-a-Premium Strategy
Management has unlocked more than S$500 million from asset disposals since 2022 at up to 55% above book value, crystallising gains while pruning low-yield tail assets. Part of these realised gains will be distributed over 2025-26 to cushion the temporary DPU dip during refurbishment works.

๐Ÿ”„ Accretive Re-deployment
Roughly S$530 million has already been redeployed into higher-yield properties in Japan, Europe, and the United States at initial yields above 5%, versus the portfolioโ€™s c.4% average. Once fully stabilised, these assets are projected to add about 1.6% to DPU, offsetting income lost from divestments.

๐Ÿ’ฐ Balance-Sheet Discipline
Gearing stands at 39.9% with an all-in cost of debt of 2.9% and interest cover of 3.2ร—. With S$1.4 billion in available liquidity and 79% of borrowings on fixed rates, the trust can pursue opportunistic deals without immediate equity-dilution risk.

๐ŸŒ Competitive Landscape Check
With S$8.8 billion of assets across 46 cities, CLAS dwarfs local lodging peers such as CDL Hospitality Trusts (AUM โ‰ˆ S$3.5 billion) and Far East Hospitality Trust (AUM โ‰ˆ S$2.6 billion). Its larger footprint and diversified income mix give CLAS greater flexibility to recycle capital and defend distributions across cycles.

๐Ÿ”ฎ Analyst View

According to simplywall.st, analyst consensus targets sit near S$1.04, implying c.21% upside and a forward yield around 7%. Analysts cite the visible growth pipeline, disciplined capital management, and RevPAU recovery as key supports, while cautioning that renovation-related DPU drag remains a short-term watch-point.

๐Ÿ“ˆ Conclusion
Asia-Pacificโ€™s largest lodging trust pairs defensive income today with embedded growth levers for tomorrow, offering investors a balanced play on travel recovery and disciplined capital recycling.

For whom haven't open CBA can know more from below:

๐Ÿฆ Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!

Find out more here๏ผš

# SGX Stocks Opportunities

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment๏ผˆ3๏ผ‰

  • Top
  • Latest