CapitaLand Ascott Trust Shows Stable Performance, Strong Portfolio February 9, 2026
Company Overview
CapitaLand Ascott Trust operates as a hospitality-focused REIT with a geographically diversified portfolio spanning key markets including Australia, Singapore, the United States, Japan, and the United Kingdom. The trust maintains a balanced income structure with 65% stable income streams and growth-oriented assets, positioning it as a leading player in the hospitality sector.
Strong Financial Performance Drives Distribution Growth
Despite maintaining a stable DPU, CLAS achieved notable financial improvements during FY25. Income available for distribution surged 11% year-on-year to S$256.7 million, driven by enhanced operating performance and successful portfolio reconstitution initiatives. After retaining S$23.2 million for asset enhancement initiatives and working capital requirements, total distribution to unitholders increased 1% year-on-year to S$233.5 million.
The trust’s portfolio Revenue Per Available Unit (RevPAU) demonstrated consistent growth, rising 2% year-on-year in Q4 2025 to S$180, while full-year RevPAU reached S$161, up 3% year-on-year. This improvement was primarily attributed to a 2-percentage point increase in occupancy rates to 83%, which reflects stronger market demand and effective asset management.
Market Performance and Outlook
CLAS reported robust performance across most key markets on a same-store basis during Q4 2025. Australia, Singapore, and the USA recorded impressive RevPAU increases of 8%, 8%, and 9% respectively. While Japan and the UK initially showed declines of 42% and 2% respectively due to acquisitions, divestments, and asset enhancement preparations, same-store performance in these markets actually increased by 11% and 10% respectively.
Investment Recommendation and Financial Position
Phillip Securities Research maintains an ACCUMULATE recommendation with an upgraded target price of S$1.08, increased from the previous S$1.05. The trust maintains a strong financial position with an effective borrowing cost of 2.9% and improved gearing from 39.3% to 37.7% quarter-on-quarter. With 78% of debt on fixed rates and a healthy interest coverage ratio of 3 times, CLAS is well-positioned for future growth.
The trust has guided for a stable DPU of 6.1 Singapore cents for FY26, supported by over S$300 million in available divestment gains to offset major ongoing asset enhancement initiatives.
Frequently Asked Questions
Q: What was CLAS’s DPU performance for FY2025?
A: CLAS maintained a stable DPU of 6.10 Singapore cents for FY25, unchanged from the previous year and in line with expectations.
Q: How did the trust’s income available for distribution perform for FY2025?
A: Income available for distribution increased significantly by 11% year-on-year to S$256.7 million, driven by stronger operating performance and portfolio reconstitution initiatives.
Q: What drove the improvement in portfolio RevPAU?
A: The 4Q25 portfolio RevPAU rose 2% year-on-year to S$180, primarily driven by a 2-percentage point increase in occupancy rates to 83%.
Q: Which markets showed the strongest performance?
A: On a same-store basis, Australia, Singapore, and the USA recorded strong RevPAU increases of 8%, 8%, and 9% respectively in Q4 2025.
Q: What is Phillip Securities Research’s recommendation and target price?
A: Phillip Securities Research maintains an ACCUMULATE recommendation with a target price of S$1.08, increased from the previous S$1.05.
Q: How is the trust’s financial position?
A: CLAS maintains a strong financial position with an effective borrowing cost of 2.9%, improved gearing of 37.7%, and 78% of debt on fixed rates with a healthy interest coverage ratio of 3 times.
Q: What is the outlook for FY2026?
A: CLAS has guided for a stable DPU of 6.1 Singapore cents for FY26, with expectations of low single-digit portfolio RevPAU growth supported by improving occupancy.
Q: What resources does CLAS have for future initiatives?
A: The trust has over S$300 million in divestment gains available on the balance sheet to support ongoing asset enhancement initiatives and offset their impact on distributions.
This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.
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About the author
Darren Chan
Darren has over seven years of experience across both the buy-side and sell-side. During his tenure as a fund manager, he managed multiple funds and mandates, including dividend income, growth, customised, Singapore-focused, and regionally focused strategies. He holds a First-Class Honours degree in Banking and Finance from the University of London.
