Home Capital Results

CapitaLand Ascott Trust says 3QFY2022 gross profit at 90% of pre-Covid-19 levels

Felicia Tan
Felicia Tan10/28/2022 08:09 AM GMT+08  • 4 min read
CapitaLand Ascott Trust says 3QFY2022 gross profit at 90% of pre-Covid-19 levels
ne of the studios at Citadines Trafalgar Square, London. Photo: CLAS
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

CapitaLand Ascott Trust (CLAS) says its gross profit for the 3QFY2022 ended Sept 30 has stood at around 90% of its pre-Covid-19 levels.

Revenue and gross profit for the quarter stood higher y-o-y due to contributions from seven new properties as well as from the full quarter’s contribution from Wildwood Lubbock. The portfolio’s stronger operating performance also contributed to the y-o-y growth.

Excluding the contributions from the eight properties, same-store gross profit rose 70% y-o-y.

According to CLAS, growth income sources contributed 44% of the gross profit in the 3QFY2022, compared to the 41% in the 2QFY2022. The remaining 56% in the 3QFY2022 were from stable income sources.

Revenue per available unit (RevPAU) in the 3QFY2022 rose 88% y-o-y to $132 due to the higher occupancy of over 70% and higher average daily rates (ADR).

The trust’s China and Singapore portfolios recorded the strongest q-o-q growth of 28% and 27% respectively, while its Australian and US portfolios continued to perform at close to pre-Covid levels.

See also: Second Chance Properties doubles net profit in 1HFY2023 with sale of seven properties

For the period from July 1 to Aug 23, an advanced distribution per share (DPS) of 1.078 cents in relation to the trust’s private placement, was paid out on Oct 18.

In Australia, CLAS’s RevPAU increased by 126% y-o-y to A$129 ($117.37), mainly due to the strong ADR, which surpassed its pre-Covid-19 levels.

The outlook for its Australian portfolio remains positive in the 4QFY2022 as overall travel confidence has returned. More entertainment and sporting events are also expected to be held, which will boost demand further for the trust’s properties.

See also: Moomoo Singapore’s user base exceeds 25% of market share as parent company’s FY2022 gross profit grows by 12.0% y-o-y

CLAS’s Chinese portfolio saw RevPAU of RMB278 ($54.30), down 1% y-o-y and up by 28% q-o-q.

Here, long stays will continue to be the primary source of business moving forward amid an improving outlook.

In France, CLAS’s revenue for the 3QFY2022 increased 14% y-o-y to EUR4.8 million ($6.78 million). The portfolio in France also saw higher ADR y-o-y that surpassed its pre-Covid-19 levels.

The trust says the strong positive trend in the country is expected to continue in 4QFY2022, with the remainder of the year seeing healthy flow of bookings despite the low travel season.

In Japan, RevPAU fell by 12% y-o-y to 4,633 yen ($44.37) due to the strong one-off uplift due to the Olympic Games in the corresponding period the year before.

That said, the nation-wide and prefectural travel campaigns, which restarted in September and October, are expected to positively impact domestic leisure demand further in the 4QFY2022.

CLAS’s Singapore portfolio saw RevPAU surge 174% y-o-y to $178. The country’s outlook remains positive with strong leisure demand anticipated for the next quarter especially during the year-end peak.

For more stories about where money flows, click here for Capital Section

In the UK, RevPAU surged 131% y-o-y to GBP148 ($240.94), in line with pre-Covid-19 levels. This was boosted by the continued return of foreign travellers, says CLAS.

Within the country, outlook is positive, as the properties continue to see healthy volume of forward bookings and well-supported by corporate and long stay demand. The positive outlook is also boosted by several city events in the 4QFY2022.

In the US, RevPAU also surged by 140% y-o-y to US$209 ($294.49) due to the continued increase in domestic leisure demand, as well as bookings from corporate groups and transient travellers.

According to CLAS, its outlook in the US remains robust as New York City hosts more events in the 4QFY2022 which will give properties a boost in demand; the last quarter of the year is also a seasonally stronger one for leisure travel.

Vietnam’s RevPAU increased by 93% y-o-y to VND1.16 million ($65.65). This was driven largely by Ho Chi Minh City properties that registered an average occupancy of 90% in 3QFY2022, with greater demand coming from corporate and international relocation segments. Meanwhile, the country’s Hanoi properties registered softer performance.

Long stays remained the primary source of business, and average length of stay in 3QFY2022 was around 5.5 months, says the trust.

The country’s outlook remains positive, with continued resumption of international flights and reopening of source markets such as Japan and Taiwan. According to CLAS, Vietnam’s forward bookings reflect pick-up of corporate short stays and more international leisure demand in the year-end festive season.

As at Sept 30, CLAS’s gearing stood at 35.8%.

Its net asset value (NAV) per stapled security stood at $1.13 as at Sept 30.

Units in CLAS closed 1.5 cents higher or 1.65% up at 92.5 cents on Oct 27.

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.