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
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