Excerpts from UOBKayHian report

CapitaLand Ascott Trust (SGX: HMN)

CapitaLand Ascott Trust (CLAS)’ portfolio RevPAU recovered 88% yoy and 6% qoq to S$132 in 3Q22, which is 87% of pre-pandemic levels on a pro forma basis, due to higher occupancy (>70% in 3Q22) and ADR (9M22: +40% yoy). China and Singapore recorded strong sequential growth, while Australia and the US continued to perform at close to pre-pandemic levels. Aggregate leverage was healthy at 35.8%, while cost of debt was stable at 1.7%. 2023 distribution yield is attractive at 6.5%. Maintain BUY. Target price: S$1.27.

Gross profit grew 70% yoy on same-store basis

Growth in revenue and gross profit was driven by contributions from eight new properties and stronger operating performance of the existing portfolio. Gross profit accounted for 90% of pre-pandemic levels on a pro forma basis. Excluding the contributions from the eight properties, same-store gross profit grew...