DPS for CLAS grew from 4.32 cents in FY2021 by 31% year over year to 5.67 cents
The administrators of CapitaLand Ascott Trust (CLAS) have announced a distribution per stapled security (DPS) of 3.33 cents for the second quarter of FY2022 that which ended on Dec 31 2022. Its DPU of the 2nd quarter of FY was 47% more than the 2HFY2021’s DPS that was 2.27 cents.
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In Fiscal year 2022, CLAS’s dividend per share rose by 31% year-over-year to 5.67 cents, which is up over FY2021’s 4.32 cents.
Inclusion of one-off items such as the gain from divestment of $45 million, which was distributed in FY2021, the adjusted DPS for FY2022 grew by up 106% year-over-year up to 4.79 cents.
In the 2HFY2022 CLAS’s revenues grew by 70% year-over-year to $353.8 million as a result of an increase in revenues from its existing portfolio as well as the contributions from its portfolio of assets that are longer-stay.
Gross profit increased by 80% year-over-year up to $164.6 million. The profits came of the trust’s properties with master leases properties that are on contracts for management with guaranteed minimum incomes, as well as properties under management contracts.
On a similar store basis the gross profit and revenue for the 2HFY2022 was up by the sum of 58% as well as 67% respectively.
In the wake of 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.
The six-month period was a success for CLAS. CLAS announced revenue for each unit available (RevPAU) at $143. which was up by an average of 81% over the previous year, and CLAS continued to show excellent operating results in the wake of the revival to international flights.
RevPAU for 4QFY2022 increased by 78% in a one-on-one basis to $155. The quarter’s RevPAU was at levels pre-pandemic for CLAS similar 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 growth 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, the CLAS’s rental and student accommodations in addition to rental properties reported the highest occupancy of more than 95%.
In FY2022, the revenue of CLAS was up an average of 58% over the previous year to $621.2 million, due to increased revenue from its existing portfolio, as well as contributions from properties purchased during the year. The increase was partially offset by the lower revenues from divestments during the FY2021.
The gross profit rose by 33% year-on-year to $282.8 million, mostly due to increase in revenues
The total distribution of the year was up by 38% from a year ago up to $189.8 million.
RevPAU for FY2022 increase by 774% from a year ago to $120.
At the end of December 2022 CLAS reported a gain in fair market value of approximately $200 million in the value 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.
In cash as well as cash equivalents, as at December 31st, 2022, was in the range of $298.9 million.
“CLAS’s strong performance is backed by our well-balanced and diverse portfolio. The growth income contribution grew by 48% in the second quarter of FY2022, due to the fact that our properties experienced an increase in demand as a result of the recovery in the hospitality industry following Covid-19. Our stable income streams provided a cushion against negative risks,” says Bob Tan Chairman of the management.
“To improve our stable income portfolio 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 industry’s ongoing growth.
“We believe that CLAS will continue to reap the benefits from the reopening of additional destinations as well as the sluggish need for tourism. In the next year, we’ll be implementing assets enhancement programs (AEI) in four properties located in Singapore, France, Germany and UK. These AEIs will boost the value and value on these properties and also increase our income streams” she says.
“We remain cautious in our capital management strategy in the search for opportunities to restructure our portfolio. The latest acquisition we made of an apartment rental property located in Fukuoka will help CLAS increase its income ability to withstand the test of time. Fukuoka is one of the fastest-growing cities of Japan and our current rentals properties located in Fukuoka have proven to be successful,” she adds.
DPS will be paid out on March 1. DPS to be paid on the 1st of March.
Units of CLAS ended the day 1 cent less (or 0.93% down at $1.07 on January 27.