Operations Review 1 Source: The Business Times (2025) 2 Source: Colliers (2024) 3 Source: Savills (2024) 4 RevPAU pertains only to serviced residences, and excludes rental housing properties. 5 Source: JTB (2025) 6 Source: Merxwire (2025) OPERATIONAL UPDATES Japan received a record-breaking 37 million international visitors in 2024, surpassing the 25 million visitors in 2023 and the previous record of nearly 32 million in 20191. The surge in arrivals was fuelled by a few key factors, including the favourable exchange rate of a weak Japanese Yen, pentup demand following the pandemic, and Japan’s increased popularity among tourists2. In 2024, the Japan hotel sector continued its upward trend, reaching new highs in ADR and RevPAR3. In line with the market, CLAS’ serviced residences under management contracts reflected a robust performance in 2024, driven by strong international leisure demand. In JPY terms, CLAS’ RevPAU4 for FY 2024 rose by 24% YoY. On a same-store basis, excluding Citadines Karasuma-Gojo Kyoto which was divested in October 2024, RevPAU increased by 20% YoY mainly due to higher ADR. Revenue from CLAS’ properties under master leases increased 26% YoY in JPY terms in FY 2024. The two hotels received higher variable rent, in addition to fixed rent, driven by strong operating performance. The student accommodation property in Osaka, which is under a master lease with fixed rent terms, provided stable income to CLAS. Excluding Teriha Ocean Stage which was a newly-completed property and still in its ramp-up phase in 2024, CLAS’ rental housing properties continued to register high stable average occupancies of over 95% in 2024, offering resilience to the portfolio. In 2025, international visitor arrivals to Japan are forecasted to surpass 40 million5, building on the record in 2024. Major events like the Expo 2025 in Osaka, the World Athletics Championships in Tokyo, and the triennial Setouchi International Art Festival, are expected to be significant drivers of Japan’s tourism in 20256. CLAS’ longer-stay properties are anticipated to continue providing diversification and resilience to the portfolio. HOTELS/SERVICED RESIDENCES GROSS RENTAL INCOME (JPY’000) REVENUE PER AVAILABLE UNIT (JPY) FY 2024 FY 2023 FY 2024 FY 2023 Properties under master leases Hotel WBF Honmachi1 24,468 64,054 – – Sotetsu Grand Fresa Osaka-Namba 1,196,026 848,312 – – Sotetsu Grand Fresa Tokyo-Bay Ariake 1,593,753 1,298,913 – – Properties under management contracts Citadines Central Shinjuku Tokyo 1,517,905 1,255,213 19,041 15,626 Citadines Karasuma-Gojo Kyoto2 316,404 360,527 9,313 7,966 Citadines Shinjuku Tokyo 1,285,649 1,079,612 21,954 18,486 Hotel WBF Kitasemba East3 – – – – Hotel WBF Kitasemba West3 – – – – 1 The divestment of the property was completed on 14 March 2024; hence the gross rental income stated for FY 2024 is for 1 January 2024 to 13 March 2024. 2 The divestment of the property was completed on 8 October 2024; hence the gross rental income and RevPAU stated for FY 2024 are for 1 January 2024 to 7 October 2024. 3 There was no gross rental income in FY 2023 and FY 2024 as the property was closed due to poor market demand. The divestment of the property was completed on 14 March 2024. 32 CapitaLand Ascott Trust
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