CapitaLand Ascott Trust (CLAS) posted income available for distribution of S$107.1 million for the six months ended Jun 30, 2026, up 11% year-on-year, lifted by higher non-periodic exchange-related gains. The increase came despite a softer top line, with revenue falling 7% to S$370.9 million as the trust continued to recycle capital and upgrade assets.

For the half year, CLAS maintained a distribution per stapled security (DPS) of 2.53 Singapore cents, unchanged from a year earlier and representing a trailing 12-month yield of 6.9% based on the Jun 30 closing price of S$0.885. Total distribution amounted to S$97.5 million after retaining S$9.6 million of non-periodic gains. The record date is set for Aug 5, with payment slated for Aug 28.

Gross profit slipped 11% YoY to S$161.6 million, while core DPS—excluding non-periodic items—fell 10% to 2.16 cents. On a same-store basis, revenue and gross profit eased 1% and 5% respectively, but portfolio revenue per available unit (REVPAU) edged up 1% YoY to S$147 a day, supported by an average occupancy rate of 78%.

Management attributed the softer underlying earnings to timing gaps between recent acquisitions and divestments, temporary income displacement from ongoing asset enhancement initiatives (AEIs), foreign-exchange movements and one-off tax adjustments. CLAS provided a distribution top-up to cushion the closures of The Cavendish London and Madison Hamburg during refurbishment works.

During the half year the trust bought three freehold rental-housing assets in Kanagawa, Japan, for ¥4.6 billion (S$38.3 million), securing a blended FY 2025 entry yield of 4.1% and an estimated 0.2% DPS accretion. It also agreed to sell The Robertson House by The Crest Collection in Singapore for S$360 million—4% above book value and at a 2.3% exit yield—to free capital for higher-yielding opportunities, further AEIs and debt reduction.

Chief executive officer Serena Teo said the first-half results reflected CLAS’s “disciplined portfolio reconstitution”, noting that deeper exposure to Japan’s rental-housing market and value-unlocking divestments should bolster resilience. She added that the forthcoming opening of the redeveloped Somerset Clarke Quay Singapore in early 2027, along with contributions from refurbished assets such as Citadines République Paris and Sheraton Tribeca New York, is expected to support future income.

CLAS closed Jun 30 with gearing at 37.7%, an average borrowing cost of 2.8% and a weighted average debt maturity of 3.5 years; 77% of debt is fixed-rate. Management said the balance-sheet headroom, combined with ongoing hedging and diversified funding sources, positions the trust to pursue accretive acquisitions while weathering macroeconomic uncertainties.