# CapitaLand Ascott Trust (CLAS) Achieves Strong Growth in First Quarter of 2024

- Link: https://www.directorstalkinterviews.com/capitaland-ascott-trust-clas-achieves-strong-growth-in-first-quarter-of-2024/4121153492
- Published: 2024-04-24T10:14:26+01:00
- Author: Anthony Fox

**CapitaLand Ascott Trust** (CLAS) has reported a robust start to 2024, with its
first quarter gross profit increasing by 15% year-on-year, buoyed by sustained demand
for lodging and strategic portfolio adjustments. This rise was primarily driven 
by enhanced operating performance and new property acquisitions.

During Q1 2024, CLAS witnessed growth in both its stable and growth income sources,
which contributed 64% and 36% to its gross profit, respectively. Notably, the trust
acquired Teriha Ocean Stage, a rental housing property in Fukuoka, Japan, and divested
several properties, including Courtyard by Marriott Sydney-North Ryde in Australia
and multiple properties in Osaka, Japan.

The trust’s performance was particularly strong in its key markets—Australia, Japan,
Singapore, the UK, and the USA—all of which registered year-on-year increases in
Revenue per Available Unit (RevPAU).

In response to the dynamic market conditions, CapitaLand Ascott Trust strategically
divested properties that had reached optimal stages in their life cycles, and reinvested
in more optimal, higher-yielding assets. This proactive portfolio reconstitution
aims to enhance the quality and returns of the portfolio, maintaining a balance 
between stability and growth.

Looking forward, CapitaLand Ascott Trust remains focused on leveraging its diversified
and well-balanced portfolio to deliver sustainable returns. The trust’s prudent 
capital management and robust financial health, underscored by a strong gearing 
position and diversified funding sources, position it well to navigate future market
cycles and capitalise on growth opportunities.

This promising start to the year reflects CapitaLand Ascott Trust’s agility in adapting
to market conditions and its strategic vision in optimising its asset portfolio 
to ensure long-term value creation for its stakeholders.

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