Q A To drive further organic growth, we have announced AEI plans for eight of our properties. The properties are in prime locations of key gateway cities such as London, Singapore, Sydney and Paris. The rebranding and refurbishment of Riverside Hotel Robertson Quay to The Robertson House by The Crest Collection, a luxury hotel, has been completed in 1Q 2024. The remaining AEI projects are expected to be completed between 2024 and 2026. We are grateful for the strong support of our investors and capital partners despite the challenging market environment. This has enabled us to strengthen our financial position and push forth with our value creation initiatives. In 2024, we will continue to focus on executing our pipeline of AEIs, while evaluating opportunities for portfolio reconstitution to enhance the quality and yield of our portfolio. We will continue to exercise prudence in our capital management. CLAS has an investment grade credit rating of BBB with a stable outlook by Fitch Ratings. As at 31 December 2023, our average cost of debt was 2.4% per annum and it is expected to increase in FY 2024 as some of our debt is refinanced. However, the increase will be mitigated, with about 81% of CLAS’ debt effectively on fixed rates. Our gearing and interest cover are healthy at 37.9% and 4.0 times respectively. Our exposure to foreign exchange movements is mitigated by our geographically diversified portfolio and hedging strategies. How does CLAS pursue growth responsibly? CEO: CLAS remains committed to meeting our sustainability goals. Sustainability is at the heart of what we do and it is factored into the different stages of the real estate cycle, such as when we acquire, develop or refurbish properties. We also work with like-minded operators who manage our properties in a sustainable manner. CLAS is also able to leverage our sustainability achievements to explore sustainable financing options, enabling us to further mitigate our cost of borrowing. As at 31 December 2023, about 49% of CLAS’ gross floor area is green certified and CLAS has over S$550 million in sustainable financing. As testament to our commitment towards sustainability, CLAS has been recognised by GRESB as the “Global Sector Leader (Listed – Hotel)” for the third year in a row and included as a constituent of the iEdgeUOB APAC Yield Focus Green REIT Index in 2023. We will continue to build a sustainable portfolio, in alignment with CapitaLand Investment’s 2030 Sustainability Master Plan. Chairman: As a responsible steward, we are committed to delivering sustainable returns and creating value for our Stapled Securityholders in a disciplined manner. We have achieved steady growth in our DPS over the past three years and built a stronger and more resilient portfolio. CLAS is the largest lodging trust in Asia Pacific with a diversified portfolio across more than 45 cities and 16 countries. CLAS’ portfolio today marries growth with stability – hospitality assets which are well-positioned to capture growth opportunities in an upturn, balanced by longerstay properties which provide stable income streams and are counter cyclical. In addition, CLAS is in a robust financial position and continues to receive strong support from our Sponsor. In 2023, CLAS was ranked first in the Singapore Governance and Transparency Index for the REITs and Business Trusts category for the third consecutive year. As part of the Boards' renewal, I would like to welcome Mr Lui Chong Chee and Mr Max Loh who have joined the Boards in February 2024 and November 2023 respectively. I would also like to express our appreciation to Mr Melvyn Ong, who stepped down from the Boards in January 2024, for his invaluable contributions. I will be retiring from the Boards with effect from 22 April 2024 and would like to thank our Stapled Securityholders, guests and business partners for their support over the past nine years. It has been a privilege working alongside an outstanding management team and very committed and supportive directors in bringing CLAS to what it is today. Going forward, I have every confidence that under Chong Chee, the new chairman of the Boards, CLAS will continue to do well for our Stapled Securityholders and achieve even greater heights. ANNUAL REPORT 2023 11 Overview Leadership Portfolio & Performance Sustainability & Governance Financial Statements and Other Information
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