The CLAS managers CapitaLand Ascott Trust (CLAS) have reported a distribution for each stapled security (DPS) of 3.33 cents for the period that ending December 31 2022. CLAS’s DPU of the 2nd quarter of FY was 47% over 2HFY2021’s which was 2.27 cents.
In Fiscal year 2022, CLAS’s dividend per share grew by 31% year-over-year to 5.67 cents, which is up by 31% from the FY2021’s 4.32 cents.
Inclusion of one-off items such as the gain from divestment of $45 million that was distributed in FY2021, adjusted DPS for FY2022 grew by the 106% year-over-year up to 4.79 cents.
In the 2HFY2022 CLAS’s revenue increased by 70% from a year ago to $353.8 million, due to an increase in revenues from its portfolio as well as the contributions from its portfolio of assets with a longer stay.
Gross profit jumped by 80% year-over-year up to $164.6 million. It was a result of the gains of the trust’s properties with master leases properties under management agreements with guaranteed minimum incomes, as well as properties under management contracts.
Based on the same store the gross profit and revenue for the 2HFY2022 increase by 58% and 67% respectively% in the 2HFY2022 and by 67% respectively.
Due to the rise in gross profit and revenue CLAS’s total distribution for the 2HFY2022 year increased by 54% year-over-year up to $113.2 million.
In the six-month time frame, CLAS announced revenue for each unit available (RevPAU) in the range of $143, which was up by an average of 81% over the previous year, and it maintained its high operating efficiency due to the returning to international flights.
RevPAU for 4QFY2022 increased by the sexiest 78% from a year ago to $155. The quarter’s RevPAU was at levels pre-pandemic for CLAS as compared to its pro forma 4QFY2019 RevPAU that also comprises the overall performance the Ascendas Hospitality Trust’s (A-HTRUST) portfolio.
All of CLAS major markets reported RevPAU increases q-o -q The largest improvement emanating from Japan, Australia and the USA. CLAS’ portfolios in Singapore, Australia, the UK and the US were at pre-Covid RevPAU levels.
CLAS’s occupancy rate for 4QFY2022 was 78%. At the time of December 31st 2022 CLAS’s students’ housing in addition to rental properties had the average of greater than 95%.
In FY2022, CLAS’s revenues was up the sum of 58% year-over-year to $621.2 million, due to increased revenue from its existing portfolio, as well as contribution from properties that it acquired in the course of the year. The increase was partially offset by the lower revenues from divestments in FY2021.
Gross profit grew by 64% year-on-year to $282.8 million, mainly due to the more revenues
The total distribution for the year was up by 38% year-over-year up to $189.8 million.
The RevPAU for FY2022 was has increased by 774% from a year ago to $120.
At the end of December 2022 CLAS had a net fair value increase of approximately $200 million on the worth of its portfolio due to improved operating performance and a better prospects regarding its properties. The key markets of the trust that have gain in valuation are Australia, Singapore, the UK and the US.
The cash and equivalents, as at December 31st, 2022, was in the range of $298.9 million.
“CLAS’s solid performance is supported by our well-balanced and diverse portfolio. The growth income contribution grew up to 48% in the 2HFY2022 period because our properties experienced an increase in demand as a result of the recovery in the hotel industry post Covid-19. Meanwhile, our steady income streams provided resilience to risk of a downturn,” says Bob Tan Chairman of the management.
“To increase our income portfolio that is stable, CLAS has invested in the amount of $420 million over 15 acquisitions that were accretive during FY2022, mostly in the long-stay segment,” he adds.
Serena Teo, CEO of the management team, says they are “cautiously optimistic” of the sector’s continuing improvement.
“We believe that CLAS in the future to gain from the opening of new destinations as well as the sluggish need for tourism. In the next year, we’ll be conducting Asset Enhancement Initiatives (AEI) to four properties located in Singapore, France, Germany and UK. The AEIs will increase the value and profit for these properties and also increase our income streams” she adds.
“We remain cautious in our capital management strategy and are looking for opportunities to restructure our portfolio. Our recent acquisition of the rental housing property located in Fukuoka will increase CLAS’s income capacity. Fukuoka is located in one of the fastest-growing cities of Japan and our current rent-to-own properties within Fukuoka have been performing well,” she adds.
DPS will be paid out on March 1. DPS to be paid on the 1st of March.
Units of CLAS were trading one cent lower which is 0.93% down at $1.07 on January 27.