Annual Report 2024 CapitaLand Ascott Trust
Forging Ahead, Shaping The Future The cover design embodies our continuing drive to forge ahead with clarity, conviction and confidence in our strategies to grow our business. The dynamic interplay of circular nodes and diagonal beams conveys upward momentum achieved through embracing innovation and transformation. Set within a structured yet evolving grid, the design underscores adaptability and agility, reflecting our relentless quest to create superior value for our investors and contribute positively to the communities where we operate. The focal red circle that proudly represents the red dot in CapitaLand’s logo symbolises our Group’s foundation in Singapore. As a global lodging trust, CapitaLand Ascott Trust is well-positioned for sustained growth, while also making an impact in shaping a better future for all our stakeholders. Featured property: Wildwood Lubbock, USA Contents Overview About Us 1 Chairman & CEO Message 2 2024 Highlights 4 Trust Structure and Organisation Structure 10 Boards of Directors 11 Management Team 14 Performance Financial Review 15 Portfolio Overview 22 Operations Review 26 Investor Relations 50 Portfolio Listing 52 Governance Risk Management 58 Corporate Governance 63 Statement of Policies and Practices 93 Financial Statements Financial Statements and Notes 99 Other Information Additional Information 307 Statistics of Stapled Securityholdings 309
Featured property: Citadines Kurfürstendamm Berlin, Germany About Us CapitaLand Ascott Trust (CLAS) is the largest lodging trust in Asia Pacific with an asset value of S$8.8 billion as at 31 December 2024. Having listed on the Singapore Exchange Securities Trading Limited (SGX-ST) since March 2006, CLAS’ objective is to invest primarily in income-producing real estate and real estate-related assets which are used or predominantly used as serviced residences, rental housing properties, student accommodation and other hospitality assets in any country in the world. CLAS is a constituent of the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index). CLAS’ international portfolio comprises 100 properties with over 18,000 units in 45 cities across 16 countries in Asia Pacific, Europe and the United States of America as at 31 December 2024. CLAS’ properties are mostly operated under the Ascott, Somerset, Quest and Citadines brands. They are mainly located in key gateway cities such as Barcelona, Berlin, Brussels, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, London, Manila, Melbourne, Munich, New York, Paris, Perth, Seoul, Singapore, Sydney and Tokyo. In 2024, CLAS continued to be recognised for its high standards in corporate governance, investor engagement and sustainability. For the fourth consecutive year, CLAS retained the top position in the Singapore Governance and Transparency Index 2024 (REITs and Business Trusts category) and was named the Global Listed Sector Leader in the Hotel category in the 2024 GRESB Real Estate Assessment. CLAS is a constituent of sustainability indices including the iEdge-UOB APAC Yield Focus Green REIT Index and the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index. CLAS is a stapled group comprising CapitaLand Ascott Real Estate Investment Trust (CapitaLand Ascott REIT) and CapitaLand Ascott Business Trust (CapitaLand Ascott BT). CLAS is managed by CapitaLand Ascott Trust Management Limited (as manager of CapitaLand Ascott REIT) and CapitaLand Ascott Business Trust Management Pte. Ltd. (as trustee-manager of CapitaLand Ascott BT). The manager and trustee-manager (collectively, the Managers) are wholly-owned subsidiaries of Singaporelisted CapitaLand Investment Limited, a leading global real asset manager with a strong Asia foothold. Total Assets Countries Properties Cities Units S$8.8 billion 16 100 45 >18,000 Our Vision To be the premier lodging trust with quality assets in key global cities Our Mission To deliver stable and sustainable returns to Stapled Securityholders 1 Annual Report 2024
Teo Joo Ling, Serena Chief Executive Officer Executive Non-Independent Director Lui Chong Chee Chairman Non-Executive Independent Director Chairman & CEO Message Dear Stapled Securityholders In the financial year 2024 (FY 2024), CapitaLand Ascott Trust (CLAS) achieved strong operating performance and continued with strategic portfolio reconstitution and asset enhancement initiatives (AEIs) to create further capacity for growth, while remaining steadfast in our commitment to delivering stable distributions to our Stapled Securityholders. DELIVERING STABLE CORE DISTRIBUTIONS CLAS’ gross profit rose 10% to S$370.9 million in FY 2024 compared to the financial year 2023 (FY 2023). This increase was driven by strong operational performance, contributions from new acquisitions, and properties that have completed AEIs, which mitigated the impact of foreign exchange and higher financing costs. On a samestore basis, excluding acquisitions and divestments in FY 2023 and FY 2024, CLAS’ gross profit increased by 4%. CLAS’ diversified portfolio, spanning across geographies, asset classes and contract types, has proven to be a source of strength. Stable income sources contributed 63% of total gross profit in FY 2024, providing resilience. Gross profit from master leases, management contracts with minimum guaranteed income and longer-stay accommodation rose 10%, 34% and 10% year-on-year (YoY) respectively. Growth income from serviced residences and hotels under management contracts, which accounted for the remaining 37% of FY 2024 gross profit, also increased on the back of higher lodging demand. Revenue per available unit (RevPAU) for FY 2024 grew 5% to S$156, mainly due to higher average daily rates (ADR). 4Q 2024 RevPAU increased by 9% YoY to S$176, exceeding pre-pandemic levels at 113% of 4Q 2019 pro forma RevPAU. Core Distribution per Stapled Security (DPS) for FY 2024, excluding non-periodic items1, increased by 1% YoY to 5.49 cents. Total DPS was 6.10 cents. CLAS’ portfolio valuation rose by 1% or S$71.9 million due to stronger operating performance and completed AEIs. 1 Relating to realised exchange gain arising from settlement of cross currency interest rate swaps and repayment of foreign currency bank loans and medium term notes. 2 CapitaLand Ascott Trust
ENHANCING OUR PORTFOLIO, CREATING FURTHER CAPACITY FOR GROWTH Through our active portfolio reconstitution strategy, we continued to build a stronger portfolio and enhance the quality of our earnings. In 2024, CLAS completed over S$500 million in divestments at premiums of up to 55% above book value, realising approximately S$74 million in net gains. Part of the capital was reinvested into higher-yielding assets and used to reduce debts with higher interest rates, delivering accretion. The remainder has been earmarked for future acquisitions and AEIs. In 2024, CLAS completed about S$350 million in acquisitions. We acquired Teriha Ocean Stage, a rental housing property in Fukuoka, Japan, the remaining 10% stake in Standard at Columbia, a student accommodation property in USA, as well as lyf Funan Singapore, a hotel in our own homeground. Additionally, CLAS completed six AEIs. Apart from the refurbishment of guest rooms and common areas, the AEIs also included mechanical and engineering improvements and the adoption of technology to enhance operational efficiency and guest experience. The properties, which are in attractive locations of key gateway cities, have seen improved performance and valuation post-renovation. UNDERPINNED BY STRONG FINANCIAL POSITION AND DISCIPLINED CAPITAL MANAGEMENT Through our disciplined and prudent capital management strategy, CLAS is in a strong financial position despite the challenging market environment. CLAS has an investment grade credit rating of BBB with a stable outlook by Fitch Ratings. As at 31 December 2024, CLAS’ average cost of debt was 3.0% per annum and we expect it to remain relatively stable in 2025. About 77% of CLAS’ debt is effectively on fixed interest rates. CLAS’ gearing is 38.3%, below the 50% limit set by the Monetary Authority of Singapore, and interest cover is healthy at 3.1 times. Our exposure to foreign exchange movements is mitigated by our geographically diversified portfolio and hedging strategies. Sustainable financing accounts for approximately S$825 million, or 26% of CLAS’ total debt, underscoring our commitment to integrating environmental goals into our financing strategy. In 2024, CLAS was the first lodging trust to obtain a 1.5°C loan from OCBC, which supports CLAS’ and our sponsor CapitaLand Investment’s Net Zero target. We are grateful for the continued support of our investors and capital partners. POSITIONED FOR SUSTAINED GROWTH While macroeconomic uncertainties and geopolitical tensions remain, CLAS is cautiously optimistic about the demand for lodging. The United Nations World Tourism Organization projects international visitor arrivals to grow at a stabilised rate of 3% to 5% in 2025, driven by the ongoing recovery in Asia Pacific and strong growth in most other regions2. To create further capacity for growth, we will continue to strengthen our portfolio and earnings through divestments, acquisitions and AEIs. In January 2025, CLAS acquired two new hotels in Tokyo and Kanazawa, Japan. The blended net operating income yield of the acquisition is 4.3% in FY 2024, which is 230 basis points higher than the blended exit yield of approximately 2.0% for four previous divestments in Japan. The acquisition has a DPS accretion of 1.6% on a FY 2024 pro forma basis. By redeploying divestment proceeds into these higher-yielding assets, we have fully replaced the income from the four divested properties. In 2025, CLAS will also begin AEIs at The Cavendish London and Sydney Central Hotel. Along with the development of Somerset Liang Court Property Singapore, these initiatives are expected to further enhance CLAS’ performance upon their planned completion in 2026. As we reconstitute CLAS’ portfolio and enhance our existing properties to grow our core distributions, there may be some short-term impact on CLAS’ distribution income. We are committed to delivering stable distributions through enhancing core distribution income from operating performance and distributing non-periodic and/or divestment gains when appropriate. As we pursue growth, we are committed to doing so responsibly. In 2024, CLAS was named the Global Listed Sector Leader in the Hotel category in the 2024 GRESB Real Estate Assessment for the fourth consecutive year and, in February 2025, CLAS was the only lodging trust in Asia Pacific to be included in the S&P Global Sustainability Yearbook 2025. Thank you Stapled Securityholders for your trust in us. We look forward to your continued support as we forge ahead to strengthen CLAS’ position as a global lodging trust. Lui Chong Chee Serena Teo Chairman Chief Executive Officer 2 Source: World Tourism Organization (2025) 3 Annual Report 2024
2024 Highlights FINANCIAL HIGHLIGHTS 5-Year Financial Summary For the Financial Year 2024 2023 2022 2021 2020 Gross Revenue (S$ million) 809.5 744.5 621.2 394.4 369.9 Gross Profit (S$ million) 370.9 338.2 282.8 173.3 149.6 Total Distribution (S$ million) 231.2 237.0 189.8 137.3 94.2 Distribution per Stapled Security (DPS) (cents) 6.10 6.57 5.67 4.32 3.03 Distribution Yield1 (%) 7.01 6.64 5.40 4.19 2.81 Balance Sheet as at 31 December 2024 2023 2022 2021 2020 Total Assets (S$ million) 8,820.1 8,730.8 8,023.7 7,733.2 7,163.8 Stapled Securityholders’ Funds (S$ million) 4,377.0 4,356.4 3,965.4 3,890.9 3,567.3 Total Borrowings (S$ million) 3,173.5 3,048.4 2,874.6 2,728.9 2,462.5 Financial Ratios as at 31 December 2024 2023 2022 2021 2020 Net Asset Value (NAV) per Stapled Security (S$) 1.15 1.16 1.15 1.19 1.15 Aggregate Leverage (%) 38.3 37.9 38.0 37.1 36.3 Interest Cover Ratio2 (times) 3.1 3.4 3.6 2.8 2.0 Adjusted Interest Cover Ratio3 (times) 3.6 4.0 4.4 3.7 2.74 Management Expense Ratio5 (%) 1.3 1.2 1.1 1.0 1.0 Financial Derivatives as a Percentage of NAV6 (%) 2.9 1.9 2.2 0.7 0.7 Other Information as at 31 December 2024 2023 2022 2021 2020 Market Capitalisation1 (S$ million) 3,302.7 3,725.7 3,617.9 3,374.8 3,356.7 Number of Stapled Securities in Issue (million) 3,796.2 3,763.3 3,445.6 3,276.5 3,108.0 1 Based on the closing price on the last trading day of each respective year. 2024: S$0.87, 2023: S$0.99, 2022: S$1.05, 2021: S$1.03 and 2020: S$1.08. 2 Refers to EBITDA (earnings before interest expense, income tax expense, depreciation and amortisation) before change in fair value of financial derivatives, change in fair value of investment properties, investment properties under development and assets held for sale, revaluation surplus/(deficit) on land and buildings, and foreign exchange differences over interest expense and distributions on hybrid securities as defined in the Code on Collective Investment Schemes dated 28 November 2024. Perpetual securities are the only hybrid securities that CLAS holds. 3 Refers to EBITDA before change in fair value of financial derivatives, change in fair value of investment properties, investment properties under development and assets held for sale, revaluation surplus/(deficit) on land and buildings, and foreign exchange differences over interest expense. 4 Restated to exclude the interest expense on lease liabilities following the release of the circular dated 28 December 2021 from Monetary Authority of Singapore to exclude the interest expense on lease liabilities in the computation. 5 Refers to expenses (excluding direct expenses, foreign exchange differences, net interest expense, change in fair value of financial derivatives, change in fair value of investment properties, investment properties under development and assets held for sale, revaluation surplus/(deficit) on land and buildings, investment properties written off and income tax expense) over net asset value. 6 Financial derivatives refer to the cross currency interest rate swaps, currency forwards and interest rate swaps which CLAS has entered into. 4 CapitaLand Ascott Trust
1 Excluding non-periodic items relating to realised exchange gain arising from settlement of cross currency interest rate swaps and repayment of foreign currency bank loans and medium term notes. Stable core distributions despite impact from foreign exchange and higher financing costs 10% YoY increase to S$370.9M Gross Profit 1% YoY increase to 5.49 cents Core Distribution per Stapled Security1 5% YoY increase to S$156 Revenue per Available Unit Healthy financial position and disciplined capital management BBB (Stable Outlook) Fitch Ratings 38.3% Healthy gearing 77% Debt effectively on fixed rates 1% increase in portfolio valuation 3.0% p.a. Low average cost of debt 3.1X Interest cover 5 Annual Report 2024
PORTFOLIO HIGHLIGHTS DIVESTMENT INVESTMENT ASSET ENHANCEMENT No. Property Location Sale price Premium over book value Exit yield1 Divestment date 1 Courtyard by Marriott Sydney-North Ryde Sydney, Australia AUD109.0M (S$95.6M) 5% 4.4% Jan 2024 2 Novotel Sydney Parramatta Sydney, Australia Sep 2024 3 Hotel WBF Honmachi Osaka, Japan JPY10.7B (S$99.8M) 15% Not meaningful Mar 2024 4 Hotel WBF Kitasemba East Osaka, Japan 5 Hotel WBF Kitasemba West Osaka, Japan 6 Citadines Mount Sophia Property Singapore Singapore S$148.0M 19% 3.2% Mar 2024 7 Citadines Karasuma-Gojo Kyoto Kyoto, Japan JPY6.2B (S$53.1M) 40% 0.3% Oct 2024 8 Infini Garden Fukuoka, Japan JPY12.7B (S$108.0M) 55% 3.4% Oct 2024 9 Somerset Olympic Tower Property Tianjin Tianjin, China More details to be provided upon completion. Target completion in 2Q 2025 1 The exit yield of the Australia properties was computed based on FY 2022 earnings before interest, taxes, depreciation and amortisation (EBITDA) as the divestments were entered into in 2023. The exit yields of the rest of the properties were computed based on FY 2023 EBITDA as the divestments were entered into in 2024. The exit yield of the three WBF properties in Japan is not meaningful as the properties were largely closed in 2022. CLAS proactively pursues investment, divestment and asset enhancement opportunities to enhance the quality and performance of our portfolio, and sustainability of returns to Stapled Securityholders. Divesting properties which have reached the optimal stage of their life cycles allows CLAS to redeploy proceeds into more optimal uses. These include investing in higheryielding properties in prime locations with strong demand drivers, and funding AEIs to enhance the performance and valuation of existing properties. Proceeds from divestments may also be used to pare down debts with higher interest rates. DIVESTMENT In FY 2024, CLAS completed over S$500 million in divestments at premium to book value, unlocking about S$74 million in net gains. In October 2024, CLAS also entered into the divestment of Somerset Olympic Tower Property Tianjin, which is expected to be completed in 2Q 2025. Accretive acquisition of S$350M in lodging properties Divested >S$500M in properties at premium to book Completed 6 AEIs, enhancing properties’ yield and valuation Ongoing development of Somerset Liang Court in Singapore Active portfolio reconstitution and asset enhancement 2024 Highlights 6 CapitaLand Ascott Trust
INVESTMENT Acquisitions In FY 2024, CLAS completed approximately S$350 million in accretive acquisitions, recycling capital at higher yields. These included the acquisition of Teriha Ocean Stage, a rental housing property in Fukuoka, Japan, lyf Funan Singapore, a hotel in Singapore, and the remaining 10% stake in Standard at Columbia, a student accommodation in South Carolina, USA. No. Property Lodging type Location No. of units / beds Purchase price EBITDA / NOI yield1 Acquisition date 1 Teriha Ocean Stage Rental housing Fukuoka, Japan 258 units JPY8.0B (S$82.6M) 4.0% Jan 2024 2 Remaining 10% stake in Standard at Columbia Student accommodation South Carolina, USA 678 beds CLAS’ total investment cost for 100% of the property is USD103.6M (S$139. 3M) 7.0% May 2024 3 lyf Funan Singapore Hotel Singapore 329 units S$146.4M2 4.7% Dec 2024 1 Net operating income (NOI) yield for Teriha Ocean Stage is on a stabilised basis. EBITDA yield for Standard at Columbia is based on CLAS’ total investment cost. EBITDA yield for lyf Funan Singapore is on a FY 2023 pro forma basis. 2 The purchase price of S$146.4 million is based on the net asset value, which takes into account the agreed property value of S$263.0 million, and agreed adjustments to the net asset value. Development Projects Development works are currently ongoing for Somerset Liang Court Property Singapore, a serviced residence with hotel licence located in the Clarke Quay precinct. The development is expected to complete in 20261. As at 31 December 2024, CLAS’ development activities comprise less than 10% of its deposited property, within the Monetary Authority of Singapore’s development limit. ASSET ENHANCEMENT In FY 2024, CLAS completed six of eight announced AEIs. The properties are in prime locations of key gateway cities. Apart from the refurbishment of guest rooms and common areas, the AEIs also included mechanical and engineering improvements and the adoption of technology to enhance operational efficiency and guest experience. The two remaining AEIs are planned to commence in 2025 and complete in 2026. To mitigate the short-term impact of AEIs, CLAS will distribute past undistributed divestment gains to keep distributions stable. The total capital expenditure of the eight AEIs is approximately S$250 million, of which CLAS’ contribution is about S$170 million. The remaining capital expenditure is funded by the master lessees or operators of the properties. No. Property Location Timeline of AEI 1 The Robertson House by The Crest Collection Singapore 1Q 2023 to 1Q 2024 2 Citadines Les Halles Paris Paris, France 2Q 2023 to 2Q 2024 3 Citadines Kurfürstendamm Berlin Berlin, Germany 4Q 2023 to 2Q 2024 4 La Clef Tour Eiffel Paris Paris, France 3Q 2023 to 2Q 2024 5 Citadines Holborn-Covent Garden London London, United Kingdom 3Q 2023 to 3Q 2024 6 Temple Bar Hotel Dublin by The Unlimited Collection (formerly Temple Bar Hotel) Dublin, Ireland 1Q 2024 to 4Q 2024 7 The Cavendish London London, United Kingdom 2025 to 20261 8 Sydney Central Hotel Sydney, Australia 2025 to 20261 1 Expected completion date subject to change. 1 Expected completion date and property details for Somerset Liang Court Property Singapore are subject to change. 7 Annual Report 2024
2024 Highlights SUSTAINABILITY HIGHLIGHTS CLAS is committed to being a responsible trust, placing sustainability at the core of what we do. CLAS is aligned with CapitaLand Investment’s (CLI) 2030 Sustainability Master Plan (SMP), which outlines our sustainability targets and pathways. CLAS’ material ESG factors are aligned with the SMP and mapped against eight UN Sustainable Development Goals. In line with CLI, CLAS has committed to achieving Net Zero carbon emissions for Scope 1 and 2 by 2050. CLAS contributes to the environmental and social well-being of the communities where we operate, as we deliver long-term economic value to our stakeholders. CLAS’ Boards recognise sustainability as an important business imperative and ensure that sustainability considerations are factored into CLAS’ strategic development. CLAS’ board statement, sustainability management structure, material ESG factors, performance and climate-related disclosures will be available in CLAS’ Sustainability Report 2024, which will be published in May 2025. The report will reference and adopt various international standards and guidelines. RATINGS & ACCOLADES Ranked 1st Singapore Governance and Transparency Index (REITs and Business Trusts) 2021, 2022, 2023, 2024 Constituent of iEdge-UOB APAC Yield Focus Green REIT Index & iEdge-OCBC Singapore Low Carbon Select 50 Capped Index c.S$825 mil in sustainable financing ‘Negligible Risk’ Sustainalytics ESG Risk Rating Winner of Singapore Corporate Sustainability Award (REITs and Business Trusts) SIAS Investors’ Choice Awards 2024 Included in the S&P Global Sustainability Yearbook 2025 Global Listed Sector Leader – Hotel GRESB 2021, 2022, 2023, 2024 8 CapitaLand Ascott Trust
Board Matters 65 Remuneration Matters 75 Accountability and Audit 81 Stapled Securityholder Rights and Engagement 85 Policies Board Diversity Policy 70 Remuneration Policy 76 Insider Trading and Dealing in Securities Policies 89 Whistle-Blowing Policy 90 How CLAS Complies With the Corporate Governance Code Board Composition Board Committee Composition Number of Meetings Board Independence Audit and Risk Committee 6 Board 5 Audit and Risk Committee 2 Nominating and Remuneration Committee 1 Executive Committee 2 AGM / EGM Gender Diversity Executive Committee Age Profile Nominating and Remuneration Committee Tenure Mix The Corporate Governance Report is benchmarked against the Code of Corporate Governance 2018 (last amended 11 January 2023) (Code). CLAS has complied with the principles of corporate governance laid down by the Code and also, substantially, with the provisions underlying the principles of the Code. Where there are deviations from the provisions of the Code, appropriate explanations are provided in this Report along with explanations of how the practices are consistent with the aim and philosophy of the principle of the Code in question. Page Reference 4 members 100% Independent 3 members 100% Non-Independent 3 members 100% Independent 5 Independent 5 Males 3 Females 3 Non-Independent 50 years & below 0-3 years 51-60 years old 3-6 years 61 years & above >6 years CORPORATE GOVERNANCE HIGHLIGHTS Based on the board composition as at the date of this Report 4 1 3 2 4 2 9 Annual Report 2024
CapitaLand Ascott Trust (CLAS) is a stapled group comprising CapitaLand Ascott Real Estate Investment Trust (CapitaLand Ascott REIT), a real estate investment trust, and CapitaLand Ascott Business Trust (CapitaLand Ascott BT), a business trust, with the following structure: 1 The Audit Committee was renamed the Audit and Risk Committee with effect from 1 January 2024. Organisation Structure Holdings of Stapled Securities Ownership of assets / shares Acts on behalf of holders of the CapitaLand Ascott REIT units Acts on behalf of holders of the CapitaLand Ascott BT units and provides management services Stapling deed Trustee fees Trustee fees and management fees Distributions Net profit / dividends Stapled Securityholders Boards of Directors • Audit and Risk Committee1 • Executive Committee • Nominating and Remuneration Committee Portfolio of Properties CapitaLand Ascott Real Estate Investment Trust (CapitaLand Ascott REIT) CapitaLand Ascott Business Trust (CapitaLand Ascott BT) Investment Finance Asset Management Investor Relations Sustainability Trustee DBS Trustee Limited Trustee- Manager CapitaLand Ascott Business Trust Management Pte. Ltd. Management services Management fees Manager CapitaLand Ascott Trust Management Limited Chief Executive Officer Trust Structure 10 CapitaLand Ascott Trust
• Master in Business Administration, INSEAD • Bachelor of Electrical and Electronic Engineering (Honours), National University of Singapore Date of first appointment as a Director 1 July 2022 Length of service as a Director (as at 31 December 2024) 2 years 6 months Present principal commitment • CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (Chief Executive Officer and Executive Non-Independent Director) • Bachelor of Science in Business Administration, New York University, United States • Master of Business Administration, New York University, United States • Advanced Management Program, Harvard Business School Date of first appointment as a Director* 1 February 2024 Date of appointment as Chairman 22 April 2024 Length of service as a Director (as at 31 December 2024) 11 months Present principal commitment • CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (Chairman) Past directorship in listed companies held over the preceding three years • CapitaLand Malaysia REIT Management Sdn. Bhd. (manager of CapitaLand Malaysia Trust) * Mr Lui Chong Chee was first appointed as a Director of Ascott Residence Trust Management Limited from June 2008 to May 2010. • Master of Business Administration, University of South Australia, Australia • Fellow, Association of Chartered Certified Accountants, UK • Fellow, Institute of Singapore Chartered Accountants • Fellow, Certified Public Accountant, Australia • Certified Fraud Examiner, Association of Certified Fraud Examiners Date of first appointment as a Director 1 September 2016 Length of service as a Director (as at 31 December 2024) 8 years 4 months Present principal commitments • Advisory Committee on Accounting Standards for Statutory Boards (Member) • Catholic Welfare Services (Member, Board of Governors) • Platanetree Capital Pte. Ltd. (Executive Director) • Roman Catholic Archdiocese of Singapore (Chairman, Archdiocesan Audit Committee) Lui Chong Chee, 64 Chairman Non-Executive Independent Director Teo Joo Ling, Serena, 51 Chief Executive Officer Executive NonIndependent Director Sim Juat Quee Michael Gabriel, 69 Non-Executive Independent Director For more information on the Boards of Directors’ background and working experience and awards, please refer to CLAS’ website at https://www.capitalandascotttrust.com/about-us/directors. Boards of Directors 11 Annual Report 2024
• Bachelor of Law (Honours), National University of Singapore • Advocate & Solicitor, Supreme Court of Singapore Date of first appointment as a Director 15 April 2020 Length of service as a Director (as at 31 December 2024) 4 years 8 months Present directorship in other listed company • SATS Ltd Present principal commitment • Rajah & Tann Singapore LLP (Partner) Other major appointments • Business China’s Go East Committee (Co-Chairman) • Business China’s FutureChina’s Committee (Co-Chairman) • Chinese Development Assistance Council (Director) • Dunman High School (School Advisory Committee) • Singapore Centre for Chinese Language (Director) • Singapore Chinese Chamber of Commerce (Director and Company Secretary, Financial Board) • Singapore Chinese Chamber of Commerce Foundation (Director and Company Secretary) • Singapore Chinese Chamber of Commerce & Industry (Chairman, Commerce & Industry) • Sun Yat Sen Nanyang Memorial Hall Co Ltd (Company Secretary) • Bachelor of Accountancy (Honours), National University of Singapore • Degree of Master of Science (Applied Finance), National University of Singapore • Chartered Financial Analyst® and Member, CFA Institute Date of first appointment as a Director 17 June 2020 Length of service as a Director (as at 31 December 2024) 4 years 6 months Present directorship in other listed company • Metro Holdings Limited Present principal commitments • Singapore University of Technology and Design (Member, Board of Trustees) • Singapore University of Technology and Design (Chairperson, Finance Committee) • Bachelor of Accountancy (Honours), National University of Singapore • Fellow, Institute of Singapore Chartered Accountants • Senior Accredited Director, Singapore Institute of Directors • Fellow, Certified Public Accountant, Australia Date of first appointment as a Director 23 November 2023 Length of service as a Director (as at 31 December 2024) 1 year 1 month Present directorship in other listed company • Samudera Shipping Line Ltd Other major appointments • Competition & Consumer Commission of Singapore (Chairman) • SPH Media Holdings Limited (Director) • Building & Construction Authority (Deputy Chairman) Chia Kim Huat, 58 Non-Executive Independent Director Deborah Lee Siew Yin, 67 Non-Executive Independent Director Max Loh Khum Whai, 63 Non-Executive Independent Director Boards of Directors 12 CapitaLand Ascott Trust
• Bachelor of Arts (Ethics, Politics and Economics), Yale University, United States Date of first appointment as a Director 1 January 2025 Present principal commitments • CapitaLand Investment Limited (Group Chief Strategy Officer and Chief Executive Officer, Commercial Management) • Fair Tenancy Industry Committee (Member) • Bachelor of Business (Accounting), University of Tasmania, Australia • Member, Institute of Singapore Chartered Accountants Date of first appointment as a Director From 1 July 2022 (Non-Executive Non-Independent Director) From 1 May 2017 to 30 June 2022 (Chief Executive Officer and Executive Non-Independent Director) Length of service as a Director (as at 31 December 2024) 7 years 8 months Present principal commitments • CapitaLand Investment Limited (Chief Financial and Sustainability Officer and Managing Director, Japan and Korea, Lodging) • Focus On the Family Singapore Limited (Director) • Focus On the Family Singapore Limited (Member, Audit, Risk & Compliance Committee) • Focus On the Family Singapore Limited (Deputy Chairman, Finance & Fundraising Committee) Beh Siew Kim, 54 Non-Executive NonIndependent Director Yeo Chin Fu Ervin, 41 Non-Executive NonIndependent Director 13 Annual Report 2024
Teo Joo Ling, Serena Chief Executive Officer Executive Non-Independent Director Ms Teo is an Executive Director on the Boards of the Managers and serves as a member of the Executive Committee. As Chief Executive Officer, she leads the overall strategic planning and implementation of the business, investment and operational strategies for CLAS. She oversees the investment, asset management, finance, investor relations and sustainability functions of the Managers. Ms Teo has over 25 years of experience spanning both private and public sectors. Prior to joining the Managers, she was with Ascendas Group for over 12 years, including more than five years in the managers of Ascendas REIT and Ascendas India Development Trust. In her most recent role, she was Head, Portfolio Management, where she was responsible for formulating and executing business strategies, and overseeing property management, lease management and asset enhancement initiatives for Ascendas REIT. Prior to that, Ms Teo held various positions including Head of Operations & Services, Head of Group Strategy Management and Vice President, Fund Management. Earlier in her career, she spent more than 10 years in the Singapore Economic Development Board, EDB Investments and Chartered Semiconductors. Ms Teo holds a Master in Business Administration from INSEAD and a Bachelor in Electrical and Electronic Engineering (Honours) from National University of Singapore. Kang Siew Fong Chief Financial Officer Ms Kang heads the finance team of the Managers and oversees all matters relating to financial management and reporting, accounting, risk management, treasury and capital management. She works closely with the investment and asset management team to drive acquisitions, divestments and annual business plans. She was a member of the pioneering team responsible for the listing of CLAS in 2006. Ms Kang has over 30 years of experience in the finance profession. Prior to joining the Managers, Ms Kang was with The Ascott Limited (Ascott) for over 13 years, where she held various leadership positions including Vice President, Finance and Vice President, Business Development and Planning. At Ascott, she was responsible for preparing group consolidated accounts and quarterly reports, coordinating with external auditors, and ensuring compliance with statutory regulations and financial reporting standards. She was also involved in mergers and acquisitions, implementation of financial policies and practices, budgeting and internal controls. Ms Kang holds a Bachelor of Accountancy degree from the National University of Singapore. She is also a Chartered Accountant of the Institute of Singapore Chartered Accountants. Lai Dongliang Head, Investment & Asset Management Mr Lai heads the investment and asset management functions of the Managers, where he oversees CLAS’ investments, divestments and asset enhancement initiatives. In his role, he also collaborates with internal and external stakeholders to maximise portfolio efficiency and financial performance. Mr Lai has over 15 years of experience in real estate investment and asset management. He has held several senior management positions with Keppel Ltd, AEW Capital Management (Asia) and others. In his most recent role as Head of Investments for Singapore at Keppel Ltd, he led the origination, underwriting and execution of transactions across various regions, including Singapore, Australia, Hong Kong and Indonesia. Mr Lai holds a Bachelor of Accountancy with First Class Honours from Nanyang Technological University, Singapore and is certified in Real Estate Investment Finance by Oxford Brookes University. Wong Xiao Fen Denise Head, Investor Relations and Sustainability Ms Wong heads the investor relations and sustainability functions of the Managers. She is responsible for providing strategic counsel to senior management and facilitating timely and effective communication with the investment community. In addition, she leads the sustainability efforts and reporting for CLAS. Ms Wong brings with her over 10 years of experience in investor relations for real estate investment trusts and fund managers, as well as construction and technology companies. She also has experience in asset management, wealth management and financial advisory. Ms Wong obtained her Bachelor of Business Management from the Singapore Management University, with majors in Finance (Wealth Management) and Marketing. She also holds the International Certificate in Investor Relations from the Investor Relations Society of UK and Certificate in ESG Investing by the CFA Institute. Seated: Serena Teo, Denise Wong Standing: Kang Siew Fong, Lai Dongliang Management Team 14 CapitaLand Ascott Trust
REVENUE AND GROSS PROFIT CLAS’ revenue of S$809.5 million for the financial year ended 31 December 2024 (FY 2024) comprised S$97.9 million (12% of total revenue) from properties under master leases, S$218.1 million (27%) from properties under management contracts with minimum guaranteed income (MCMGI) and S$493.5 million (61%) from properties under management contracts. The revenue from management contracts comprised S$395.3 million from serviced residences and hotels and S$98.2 million from rental housing and student accommodation properties. Revenue for FY 2024 increased by S$65.0 million as compared to the previous financial year ended 31 December 2023 (FY 2023). The increase in revenue was mainly due to higher revenue of S$24.3 million from the existing properties and additional contribution of S$70.8 million from the properties acquired during FY 2024 and full year contribution from the properties acquired in FY 2023. The contribution from the acquisitions had more than offset the decrease in revenue of S$30.1 million from the divestment of 12 properties during FY 2024 and FY 2023. CLAS’ portfolio occupancy was 77% in FY 2024. Revenue per available unit (RevPAU) increased by 5%, from S$148 in FY 2023 to S$156 in FY 2024. CLAS’ gross profit of S$370.9 million for FY 2024 comprised S$90.0 million (24% of total gross profit) from properties under master leases, S$86.0 million (23%) from properties under MCMGI and S$194.9 million (53%) from properties under management contracts. For the management contracts, the gross profit from serviced residences and hotels was S$135.4 million and the gross profit from rental housing and student accommodation properties amounted to S$59.5 million. CLAS’ stable income sources (which include master leases, MCMGI, rental housing and student accommodation properties) contributed about 63% of CLAS’ gross profit for FY 2024. For the properties under master leases, revenue and gross profit were higher in FY 2024 due to higher variable rent from Japan and South Korea, and higher rent received from the 11 master leases in France that were renewed in December 2023, January 2024 and October 2024. These increases were partially offset by the divestment of four properties in France in September 2023 and a property in Japan in March 2024. For the properties under MCMGI, both the revenue and gross profit were higher as compared to last year due to contributions from the acquisition of The Cavendish London and Temple Bar Hotel Dublin by The Unlimited Collection (formerly Temple Bar Hotel) in November 2023 and stronger performance of The Robertson House by The Crest Collection (The Robertson House) post-asset enhancement initiative. Revenue and gross profit from management contracts was higher due to stronger performance from most countries and contributions from the acquisition of two turnkey rental housing properties in Japan (acquired in 2Q 2023), one property in Indonesia (acquired in November 2023) and one turnkey rental housing property in Japan (acquired in January 2024). These increases were partially offset by the divestment of seven properties in Australia, Japan and Singapore in FY 2024. 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 89.2% (2023: 88.5%) for developed markets and 10.8% (2023: 11.5%) for the rest of the markets in the portfolio. 1 Refers to earnings before net interest expense, tax, depreciation and amortisation (excluding corporate expenses). Financial Review 15 Annual Report 2024
FY 2024 FY 2023 Local Currency Revenue (million) Gross Profit (million) Revenue (million) Gross Profit (million) Master Leases Australia AUD 12.2 11.0 11.8 10.9 France EUR 23.6 21.5 22.8 20.5 Germany EUR 11.4 10.7 11.4 10.2 Japan JPY 2,904.8 2,664.8 2,302.2 2,046.1 South Korea KRW 10,818.0 10,268.7 8,179.7 7,668.3 Management Contracts with Minimum Guaranteed Income Australia1 AUD 24.8 8.3 26.7 9.4 Belgium EUR 12.1 3.5 12.0 3.9 Ireland EUR 14.2 4.7 1.1 0.3 Singapore2 S$ 53.2 19.0 44.1 17.6 Spain EUR 7.4 3.6 7.1 3.4 United Kingdom GBP 55.3 25.0 37.4 16.3 Management Contracts Australia AUD 141.1 32.9 152.5 35.5 China RMB 119.9 22.9 126.4 29.0 Indonesia3 IDR 260.9 93.0 160.4 54.2 Japan JPY 6,730.7 3,906.3 5,891.3 3,376.4 Malaysia MYR 14.3 3.7 12.6 2.3 The Philippines PHP 939.2 328.6 925.3 308.7 Singapore S$ 15.2 6.0 24.5 11.2 United States of America USD 140.0 65.2 130.3 59.4 Vietnam3 VND 668.4 314.1 640.3 315.0 1 The management contract for Sydney Central Hotel was converted to “Management Contracts with Minimum Guaranteed Income” from February 2024. For comparison purposes, the revenue and gross profit amounts for FY 2023 have been reclassified from the “Management Contracts” category to “Management Contracts with Minimum Guaranteed Income” category. 2 The management contract for The Robertson House was converted to “Management Contracts with Minimum Guaranteed Income” from January 2024. For comparison purposes, the revenue and gross profit amounts for FY 2023 have been reclassified from the “Management Contracts” category to “Management Contracts with Minimum Guaranteed Income” category. 3 Revenue and gross profit figures for Indonesia and Vietnam are stated in billions. Financial Review 16 CapitaLand Ascott Trust
FY 2024 FY 2023 Revenue (S$’million) Gross Profit (S$’million) Revenue (S$’million) Gross Profit (S$’million) Master Leases Australia 10.8 9.7 10.6 9.8 France 34.2 31.1 33.1 29.8 Germany 16.4 15.5 16.6 14.8 Japan 25.8 23.6 22.2 19.7 South Korea 10.7 10.1 8.5 7.9 Subtotal 97.9 90.0 91.0 82.0 Management Contracts with Minimum Guaranteed Income Australia 21.9 7.3 24.0 8.4 Belgium 17.5 5.1 17.4 5.7 Ireland 20.5 6.8 1.6 0.5 Singapore 53.2 19.0 44.1 17.6 Spain 10.7 5.2 10.3 4.9 United Kingdom 94.3 42.6 62.4 27.2 Subtotal 218.1 86.0 159.8 64.3 Management Contracts Australia 124.8 29.1 136.6 31.8 China 22.3 4.3 24.1 5.5 Indonesia 22.2 7.9 14.1 4.8 Japan 59.8 34.7 56.8 32.6 Malaysia 4.1 1.1 3.7 0.7 The Philippines 22.0 7.7 22.3 7.4 Singapore 15.2 6.0 24.5 11.2 United States of America 187.0 87.1 175.1 79.9 Vietnam 36.1 17.0 36.5 18.0 Subtotal 493.5 194.9 493.7 191.9 Total 809.5 370.9 744.5 338.2 EQUITY FUND RAISING On 2 August 2023, the Managers launched an equity fund raising comprising a private placement and a pro rata and non-renounceable preferential offering (2023 Equity Fund Raising). On 14 August 2023, CLAS raised S$200.0 million from the private placement of 191,755,000 new Stapled Securities to institutional and other investors. Pursuant to the preferential offering, 100,538,407 new Stapled Securities were issued, on the basis of 29 preferential offering new stapled security for every 1,000 existing stapled securities, on 4 September 2023 raising gross proceeds of S$103.1 million. As set out in the announcements dated 30 November 2023, 24 April 2024, 26 July 2024 and 27 January 2025, the gross proceeds of S$303.1 million from the 2023 Equity Fund Raising have been partially utilised as follows: (a) S$170.2 million was used to fund the acquisition of The Cavendish London, Temple Bar Hotel Dublin by The Unlimited Collection and Ascott Kuningan Jakarta on 30 November 2023; (b) S$3.3 million was used to fund the extension and renovation of Sydney Central Hotel; (c) S$17.9 million was used to fund the renovation of Citadines Holborn-Covent Garden London; (d) S$24.4 million was used to repay debts; and (e) S$4.9 million was used to pay the professional and other fees and expenses in connection with the 2023 Equity Fund Raising. 17 Annual Report 2024
This is in accordance with the stated use of the proceeds and the Managers will make further announcements on the utilisation of the remaining proceeds and any deviation from the stated use and percentage allocated in the use of proceeds announcement from the 2023 Equity Fund Raising as and when such funds are materially utilised. The proceeds from the 2023 Equity Fund Raising that have been allocated towards the extension and renovation of Sydney Central Hotel and renovation of Citadines Holborn-Covent Garden London have yet to be fully utilised. The amount used for the professional and other fees and expenses incurred in connection with the 2023 Equity Fund Raising was less than the originally estimated amount in the announcement dated 2 August 2023 due to lower fees and expenses incurred. DISTRIBUTIONS Distribution income to Stapled Securityholders for FY 2024 was S$231.2 million, 2% lower as compared to FY 2023. The Distribution per Stapled Security (DPS) for FY 2024 was 6.10 cents, 7% lower than that for FY 2023. Excluding non-periodic items relating to realised exchange gain arising from settlement of cross currency interest rate swaps and repayment of foreign currency bank loans and medium term notes, core DPS increased 1% YoY due to steady operating performance and portfolio reconstitution initiatives which mitigated the impact of foreign exchange and higher financing costs. In FY 2024, 100% of distribution income (other than gains from the sale of real estate properties) was paid out. Breakdown of Distribution per Stapled Security for FY 2024 is as follows: Distribution For 1 January 2024 to 30 June 2024 For 1 July 2024 to 31 December 2024 Total for FY 2024 Distribution Rate per Stapled Security 2.547 cents 3.550 cents 6.097 cents Payment Date 29 August 2024 28 February 2025 ASSETS CLAS’ total asset value stood at S$8.8 billion as at 31 December 2024, 1% higher as compared to S$8.7 billion as at 31 December 2023. The increase in total assets was mainly due to higher portfolio valuation resulting from stronger operating performance and compression in discount rates, and higher cash and cash equivalents (mainly due to divestment proceeds of which S$65.8 million was used to partially fund the acquisition of two hotels in Japan on 31 January 2025). CHANGE IN FAIR VALUE OF INVESTMENT PROPERTIES, LAND AND BUILDINGS, INVESTMENT PROPERTIES UNDER DEVELOPMENT AND ASSETS HELD FOR SALE The net change in fair value of investment properties, land and buildings, investment properties under development and assets held for sale has no impact on Stapled Securityholders’ distribution. In accordance with the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore, valuation of CLAS’ properties is to be conducted once every year. Any increase or decrease in fair value is credited or charged to the Statement of Total Return as net appreciation or depreciation on revaluation of investment properties, investment properties under development and assets held for sale. The above accounting policy is applicable to all properties, except for The Robertson House and five hotels held under CapitaLand Ascott BT Group, which are classified as property, plant and equipment. Property, plant and equipment are measured at cost less accumulated depreciation. Subsequent to recognition, land and buildings are measured at fair value less accumulated depreciation while other plant and equipment are measured at cost less accumulated depreciation. Any surplus arising from revaluation is recognised in Stapled Securityholders’ funds, except when it reverses a previous revaluation deficit on the same asset that was recognised in the Statement of Total Return; in such case, the surplus is recognised in the Statement of Total Return to the extent of the previous deficit. Conversely, any deficit from revaluation is recognised in the Statement of Total Return, except when it reverses a previous revaluation surplus on the same asset; in such case, the deficit is recognised in Stapled Securityholders’ funds to the extent of the previous surplus. Financial Review 18 CapitaLand Ascott Trust
As at 31 December 2024, independent full valuations were carried out by HVS (except for the 31 properties listed below). For the 12 properties in Australia, the valuations were carried out by Colliers except for four properties (Pullman and Mercure Brisbane King George Square, Pullman and Mercure Albert Park, Pullman Sydney Hyde Park and Sydney Central Hotel) where the valuations were carried out by CBRE Valuations Pty Limited. The valuations for the remaining 19 properties were also carried out by Colliers: (a) La Clef Tour Eiffel Paris; (b) five rental housing properties in Japan (House Saison Shijo-Dori, Marunouchi Central Heights, S-Residence Gakuenzaka, S-Residence Namba Viale and S-Residence Shukugawa); (c) lyf Funan Singapore; (d) 11 properties in USA (comprising three hotels and the eight student accommodation properties); and (e) Somerset Central TD Hai Phong City. In determining the fair value of the Group’s portfolio, the discounted cash flow method, direct capitalisation method and residual land method were used. The valuation methods used are consistent with that used for the 31 December 2023 valuation and prior years. The Group’s portfolio was revalued at S$7.6 billion, resulting in a surplus of S$71.9 million of which S$50.0 million was recognised in the Consolidated Statement of Total Return and S$21.9 million was recognised in the Asset Revaluation Reserve on the balance sheet in FY 2024. The surplus for FY 2024 resulted mainly from higher valuation of the Group’s properties in Europe, Japan and South Korea, partially offset by lower valuation of the properties in Australia, China, USA and Vietnam. The net impact on the Consolidated Statement of Total Return was S$39.6 million (net of tax and noncontrolling interests). CAPITAL MANAGEMENT Key Financial Indicators As at 31 December 2024 As at 31 December 2023 Aggregate Leverage1 (%) 38.3 37.9 Unencumbered properties as % of total property value (%) 69 67 Interest Cover Ratio2 (times) 3.1 3.4 Effective Interest Rate (%) 3.0 2.4 Weighted Average Debt to Maturity (years) 3.7 3.7 1 As at 31 December 2024, the ratio of net debt to net assets for CapitaLand Ascott REIT Group and CapitaLand Ascott BT Group is 65.9% and 11.6% respectively; the ratio for CLAS is 57.5%. 2 Refers to EBITDA before change in fair value of financial derivatives, change in fair value of investment properties, investment properties under development and assets held for sale, revaluation surplus/ (deficit) on land and buildings, and foreign exchange differences over interest expense and distributions on perpetual securities. The interest cover ratio, excluding distribution on perpetual securities, is 3.6x for FY 2024 and 4.0x for FY 2023. CLAS adopts a prudent and disciplined approach towards capital management to ensure financial flexibility in its funding structure and to mitigate concentration risk. As at 31 December 2024, 72% of CLAS’ total debt was funded by bank borrowings and the remaining 28% was tapped from the debt capital market. As at 31 December 2024, CLAS’ outstanding borrowings was S$3,173.5 million (2023: S$3,048.4 million) with an effective interest rate at 3.0% per annum (2023: 2.4% per annum). To hedge against rising interest rates, approximately 77% of the total borrowings were effectively on fixed interest rates. In August 2024, CapitaLand Ascott REIT issued S$150.0 million of fixed rate perpetual securities with an initial distribution rate of 4.60% per annum, with the first distribution rate reset falling on 7 February 2030 and subsequent resets occurring every five years thereafter. The proceeds were used to redeem the S$150.0 million perpetual securities with its first call date in September 2024. 19 Annual Report 2024
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