ECONOMIC In this chapter, we report on the Financial Capital of the IR Framework. FINANCIAL PERFORMANCE In FY 2023, CLAS delivered a strong financial performance due to continued recovery in operating performance and contributions from new properties. In 4Q 2023, CLAS’ portfolio revenue per available unit (RevPAU) increased to 103% of pre-pandemic levels, mainly due to higher average daily rates. The RevPAU of CLAS’ key markets, Australia, Japan, Singapore, the United Kingdom and USA, continued to exceed prepandemic same-store levels. Japan posted the strongest year-on-year (y-o-y) growth in RevPAU, fuelled by the reopening of its international borders in late-2022. For the full year, RevPAU was 23% higher y-o-y, and revenue and gross profit increased by 20% to S$744.5 million and S$338.2 million respectively. 1 The ratio of net debt to net assets for CapitaLand Ascott REIT Group and CapitaLand Ascott Business Trust Group is 67.7% and 21.1% respectively; the ratio for CLAS is 59.9%. 2 Refers to the amount of additional debt before reaching aggregate leverage of 50%; based on an aggregate leverage limit of 45%, the debt headroom is approximately S$1.1 billion. 3 The adjusted interest cover ratio, including distributions on perpetual securities, is 3.4X. The total distribution to Stapled Securityholders for FY 2023 was S$237.0 million, 25% higher as compared to FY 2022. 100% of distribution income (other than gains from the sale of real estate properties) was paid out, demonstrating CLAS’ firm commitment to deliver stable distributions. Distribution per Stapled Security (DPS) increased for the third consecutive year to 6.57 cents for FY 2023. DPS was 16% higher y-o-y. Excluding one-off items (comprising realised exchange gains), DPS rose 14%. The improvement in our operating performance and outlook resulted in an increase in CLAS’ portfolio valuation of about 2% in FY 2023, notwithstanding higher capitalisation and discount rates across most markets. Markets with valuation gains included Australia, Europe, Japan, Singapore and the United Kingdom. STRONG RECOVERY IN FINANCIAL PERFORMANCE IN FY 2023 20% y-o-y increase in revenue to S$744.5 million BBB (stable outlook) investment grade credit rating Gearing of 37.9%1 ~ 81% Debt effectively on fixed interest rates 4.0X3 Healthy interest cover ~S$1.32 billion in available funds, comprising cash on-hand and available credit facilities 20% y-o-y increase in gross profit to S$338.2 million 16% y-o-y increase in DPS to 6.57 cents 25% y-o-y increase in total distribution to S$237.0 million Debt headroom of S$2.0 billion2 DISCIPLINED CAPITAL MANAGEMENT 23% y-o-y increase in RevPAU to S$148 SUSTAINABLE FINANCE >S$550 million raised to date 71 CAPITALAND ASCOTT TRUST
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