FINANCIAL REVIEW REVENUE AND GROSS PROFIT CLAS’ revenue of S$744.5 million for the financial year ended 31 December 2023 (FY 2023) comprised S$91.0 million (12% of total revenue) from properties under master leases, S$123.2 million (17%) from properties under management contracts with minimum guaranteed income (MCMGI) and S$530.3 million (71%) from properties under management contracts. The revenue from management contracts comprised S$439.6 million from serviced residences and hotels and S$90.7 million from rental housing and student accommodation properties. Revenue for FY 2023 increased by S$123.3 million as compared to the previous financial year ended 31 December 2022 (FY 2022). The increase in revenue was mainly due to higher revenue of S$95.9 million from the existing properties and additional contribution of S$28.1 million from the properties acquired during FY 2023 and full year contribution from the properties acquired in FY 2022. The contribution from the acquisitions had more than offset the decrease in revenue of S$0.7 million from the divestment of four properties, Citadines City Centre Lille, Citadines Croisette Cannes, Citadines Castellane Marseille and Citadines Prado Chanot Marseille in FY 2023. CLAS’ portfolio occupancy was 76% in FY 2023. Revenue Per Available Unit (RevPAU) increased by 23%, from S$120 in FY 2022 to S$148 in FY 2023. CLAS’ gross profit of S$338.2 million for FY 2023 comprised S$82.0 million (24% of total gross profit) from properties under master leases, S$53.5 million (16%) from properties under MCMGI and S$202.7 million (60%) from properties under management contracts. For the management contracts, the gross profit from serviced residences and hotels was S$148.4 million and the gross profit from rental housing and student accommodation properties amounted to S$54.3 million. CLAS’ stable income sources (which include master leases, MCMGI, rental housing and student accommodation properties) contributed about 56% of CLAS’ gross profit for FY 2023. For the properties under master leases, revenue and gross profit were higher in FY 2023 due to higher variable rent and contributions from La Clef Tour Eiffel Paris and Quest Cannon Hill (acquired in November 2022). These increases were partially offset by the divestment of four properties in France, in September 2023. For the properties under MCMGI, both the revenue and gross profit were higher as compared to last year due to stronger performance and the acquisition of The Cavendish London and Temple Bar Hotel in November 2023. Revenue and gross profit from management contracts was higher due to stronger performance from most countries and contributions from the acquisition of seven properties in Japan, Vietnam and US (acquired in November 2022), two turnkey rental housing properties in Japan (acquired in December 2022), two turnkey rental housing properties in Japan (acquired in 2Q 2023) and one property in Indonesia (acquired in November 2023). CLAS’ inclusion into the FTSE EPRA Nareit Developed Index, a leading benchmark for listed real estate investment companies and REITs, has broadened CLAS’ reach to institutional investors globally and enhanced the trading liquidity of our stapled securities. CLAS’ EBITDA1 breakdown according to the FTSE classification of markets was 88.5% (2022: 88.3%) for developed markets and 11.5% (2022: 11.7%) for the rest of the markets in the portfolio. 1 Refers to earnings before net interest expense, tax, depreciation and amortisation (excluding corporate expenses). 62 CAPITALAND ASCOTT TRUST
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