CLAS is a stapled group comprising CapitaLand Ascott REIT and CapitaLand Ascott BT. The gearing of CLAS as at 31 December 2024 was 38.3% (2023: 37.9%) with a debt headroom of S$2.0 billion2, providing it with the capacity to pursue growth opportunities including acquisitions, development and conversion projects. The gearing of CapitaLand Ascott REIT as at 31 December 2024 was 40.9% (2023: 40.3%), below the 50.0% gearing limit allowed by the Monetary Authority of Singapore. With effect from 28 November 2024, the aggregate leverage of a property fund should not exceed 50% of the deposited property and the property fund should have a minimum interest coverage ratio of 1.5 times. The Managers are of the view that the higher aggregate leverage will not have a material impact on the risk profile of CLAS as the aggregate leverage of 38.3% is still within a manageable range in the short term and the Managers will remain disciplined in managing the leverage profile of CLAS. In FY 2024, CLAS was the first lodging trust to secure an OCBC 1.5°C loan. With this S$165.0 million sustainabilitylinked multi-currency facility, CLAS will receive interest rate reductions upon meeting the agreed annual greenhouse gas emissions reduction targets. In total, CLAS has approximately S$825.4 million in sustainable financing. CLAS holds derivative financial instruments to hedge its currency and interest rate risk exposures. The fair value of derivatives for FY 2024 comprised financial derivative assets and financial derivative liabilities of S$125.9 million and S$1.1 million respectively. The net financial derivative assets amount of S$124.8 million represented 2.6% of the net assets of CLAS as at 31 December 2024. Debt Maturity Profile As at 31 December 2024 10% 16% 15% 23% 36% 2025 2026 2027 2028 2029 & after As at 31 December 2023 19% 10% 15% 14% 42% 2024 2025 2026 2027 2028 & after Maturity S$’million Maturity S$’million 2025 300.1 2024 562.4 2026 519.5 2025 301.3 2027 484.7 2026 466.0 2028 724.0 2027 429.3 2029 & after 1,145.2 2028 & after 1,289.4 Total 3,173.51 Total 3,048.41 1 Net of unamortised transaction costs. CLAS maintains a well-spread debt maturity profile to minimise refinancing risks. Out of CLAS’ total borrowings, 10% falls due in 2025, 16% falls due in 2026, 15% falls due in 2027, 23% falls due in 2028 and the balance falls due in 2029 and after. The Managers have commenced discussions to refinance the loan facilities due in 2025, ahead of their maturity dates. 2 Before reaching aggregate leverage of 50%. Financial Review 20 CapitaLand Ascott Trust
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