CapitaLand Ascott Trust posts 7% fall in second-half DPS but core DPS rises 3%

SINGAPORE - CapitaLand Ascott Trust (Clas) on Jan 27 posted a 7 per cent fall in distribution per stapled security (DPS) to 3.55 cents for the second half year ended Dec 31, 2024, from 3.8 cents in the year-ago period.

Core DPS grew 3 per cent on year to 3.08 cents from three cents, after excluding non-periodic items related to realised exchange gains arising from the settlement of cross-currency interest rate swaps and the repayment of foreign currency bank loans and medium-term notes.

The manager attributed this to stronger operating performance, acquisitions and completed asset enhancement initiatives (AEI), which mitigated the impact of divestments, ongoing AEIs, higher financing costs, as well as the depreciation of most foreign currencies against the Singapore dollar.

This brings DPS for financial year 2024 to 6.1 cents, down 7 per cent year on year.

After adjusting for non-periodic items, core DPS stood at 5.49 cents, up 1 per cent from 5.44 cents recorded in the same period the year before.

The second-half distribution will be paid out on Feb 28, after the record date on Feb 6.

Clas’ total distribution for the second half was down 4 per cent to $134.8 million from $140.8 million in the same period the previous year. 

Revenue for the half-year period stood at $423.2 million, up 6 per cent from $397.6 million recorded in the same period the year before.

The managers attributed the increase to higher income from its existing portfolio and $32.7 million in additional contributions from acquisitions.

This was partially offset by a drop in revenue of $19.9 million from divestments.

For the full year, total distribution fell 2 per cent on year to $231.2 million from $237 million. Meanwhile, revenue for the full year rose 9 per cent on year to $809.5 million from $744.6 million.

Stapled securities of Clas closed flat at 88 cents on Jan 27.

THE BUSINESS TIMES