๐Ÿš€ 1-Min Stock Rundown

๐ŸŽฏ Is CapitaLand Ascott Trust (SGX: HMN) worth checking out?

๐‚๐š๐ฉ๐ข๐ญ๐š๐‹๐š๐ง๐ ๐€๐ฌ๐œ๐จ๐ญ๐ญ ๐“๐ซ๐ฎ๐ฌ๐ญ: ๐๐จ๐ซ๐ญ๐Ÿ๐จ๐ฅ๐ข๐จ ๐‘๐ž๐œ๐จ๐ง๐ฌ๐ญ๐ข๐ญ๐ฎ๐ญ๐ข๐จ๐ง ๐ƒ๐ซ๐ข๐ฏ๐ž๐ฌ ๐‘๐ž๐ฌ๐ข๐ฅ๐ข๐ž๐ง๐ญ ๐ˆ๐ง๐œ๐จ๐ฆ๐ž

๐Ÿ“Š 1Q 2025 Momentum
Gross profit climbed 4% year-on-year to about S$75 million, fuelled by an 11% lift in RevPAU to roughly US$160. Master leases and guaranteed-income contracts now contribute 70% of gross profit, underpinning steady cash flows even as travel demand normalises.

๐Ÿ—๏ธ Divest-at-a-Premium Strategy
Management has unlocked more than S$500 million from asset disposals since 2022 at up to 55% above book value, crystallising gains while pruning low-yield tail assets. Part of these realised gains will be distributed over 2025-26 to cushion the temporary DPU dip during refurbishment works.

๐Ÿ”„ Accretive Re-deployment
Roughly S$530 million has already been redeployed into higher-yield properties in Japan, Europe, and the United States at initial yields above 5%, versus the portfolioโ€™s c.4% average. Once fully stabilised, these assets are projected to add about 1.6% to DPU, offsetting income lost from divestments.

๐Ÿ’ฐ Balance-Sheet Discipline
Gearing stands at 39.9% with an all-in cost of debt of 2.9% and interest cover of 3.2ร—. With S$1.4 billion in available liquidity and 79% of borrowings on fixed rates, the trust can pursue opportunistic deals without immediate equity-dilution risk.

๐ŸŒ Competitive Landscape Check
With S$8.8 billion of assets across 46 cities, CLAS dwarfs local lodging peers such as CDL Hospitality Trusts (AUM โ‰ˆ S$3.5 billion) and Far East Hospitality Trust (AUM โ‰ˆ S$2.6 billion). Its larger footprint and diversified income mix give CLAS greater flexibility to recycle capital and defend distributions across cycles.

๐Ÿ”ฎ Analyst View

According to simplywall.st, analyst consensus targets sit near S$1.04, implying c.21% upside and a forward yield around 7%. Analysts cite the visible growth pipeline, disciplined capital management, and RevPAU recovery as key supports, while cautioning that renovation-related DPU drag remains a short-term watch-point.

๐Ÿ“ˆ Conclusion
Asia-Pacificโ€™s largest lodging trust pairs defensive income today with embedded growth levers for tomorrow, offering investors a balanced play on travel recovery and disciplined capital recycling.

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Cheers,

James -Dissecting-Stocks-in-1-min- Yeo