CapitaLand Ascott Trust (HMN) told the J.P. Morgan ASEAN Real Assets Forum on Jun, 30 2026 that distribution income for the three months ended Mar, 31 2026 stayed “relatively stable”, supported by divestment gains and lower interest expense.

The trust said 1Q26 gross profit was weighed by the temporary closure of The Cavendish London for refurbishment, partial closure of Madison Hamburg for car-park works, and a net negative effect from recent asset recycling and ongoing asset-enhancement initiatives (AEIs). These headwinds were largely offset by stronger same-store operating performance and interest savings.

CLAS remains the largest lodging trust in Asia-Pacific with total assets of 8.9 billion Singapore dollars across 106 properties in 45 cities within 16 countries, comprising more than 19,000 units. Portfolio value is split 56 per cent in Asia-Pacific, 26 per cent in Europe and 18 per cent in the United States, with 70–75 per cent exposure to serviced residences and hotels and 25–30 per cent to rental housing and student accommodation. Living-sector assets accounted for 18 per cent of portfolio value as at Mar, 31 2026.

Key transactions since 2024 include completed divestments exceeding 800 million Singapore dollars at prices up to 100 per cent above book and approximately 600 million Singapore dollars of accretive acquisitions. In Feb, 2026 CLAS bought three rental-housing properties in Greater Tokyo for 4.6 billion yen (about 38.3 million Singapore dollars), delivering a 4.1 per cent net operating income entry yield and pro-forma FY25 distribution-per-security accretion of 0.2 per cent.

In Singapore, the trust agreed to sell The Robertson House by The Crest Collection for 360 million Singapore dollars, representing a 4 per cent premium to book value and an exit yield of 2.3 per cent on FY25 EBITDA. Net proceeds of 341.7 million Singapore dollars and a net gain of about 38.1 million Singapore dollars will be redeployed into higher-yield assets, AEIs, debt repayment or other corporate purposes. Post-sale, CLAS will retain four Singapore lodging assets, including the 192-unit Somerset Clarke Quay Singapore, targeted to complete redevelopment by end-2026 and commence operations in 2027.

Four AEIs are ongoing at The Cavendish London, Sotetsu Grand Fresa Osaka-Namba, Sheraton Tribeca New York Hotel and Citadines Place d’Italie Paris, with combined capital expenditure of roughly 260 million Singapore dollars, of which CLAS will fund about 180 million Singapore dollars.

As at Mar, 31 2026, gearing stood at 38.9 per cent, providing around 1.9 billion Singapore dollars of debt headroom to the 50 per cent regulatory limit. Approximately 78 per cent of debt is on fixed rates for a weighted average maturity of 3.1 years, and the effective borrowing cost is 2.8 per cent per annum. Interest cover was 3.0 times, and available liquidity totalled about 1.51 billion Singapore dollars.

CLAS said 60–70 per cent of gross profit is derived from stable income sources such as master leases, rental housing and student accommodation. The trust reiterated its medium-term asset-allocation target of 25–30 per cent in living-sector assets and 70–75 per cent in hospitality assets while maintaining disciplined capital management and further asset-recycling opportunities to support future distributions and growth.