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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