CapitaLand Ascott Trust sharpens portfolio, delivers DPS of 2.53 cents for 1H2026

Atiqah Mokhtar

/ EdgeProp Singapore

July 28, 2026 2:09 PM SGT

propertyeditor@edgeprop.sg

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Lime Residence Hiratsuka West, one of three rental housing properties in Greater Tokyo purchased by CapitaLand Ascott Trust in 1H2026 (Picture: CapitaLand Ascott Trust)

CapitaLand Ascott Trust (CLAS) remains focused on enhancing its portfolio quality through capital recycling and asset enhancements, even as near-term results absorbed the cost of asset upgrades and property closures in the first half of 2026.

In a July 28 release on its financial performance for the six months ended June 30, the trust detailed its ongoing portfolio reconstitution. In February, CLAS deepened its living sector exposure by acquiring three freehold rental housing properties in Southern Kanagawa, Greater Tokyo, Japan for JPY4.6 billion ($38.3 million). On a pro forma basis, the acquisition has a blended net operating income entry yield of 4.1% and a DPS (distribution per stapled security) accretion of 0.2%.

In May, it announced the divestment of The Robertson House by The Crest Collection in Singapore for $360 million – 4% above book value and representing an exit yield of 2.3%. The transaction is expected to be completed this month.

Meanwhile, CLAS continues to undertake asset enhancement initiatives (AEIs) for properties in key gateway cities. It has three properties undergoing AEIs in 2026 and 2027: The Cavendish London in the UK; Sotetsu Grand Fresa Osaka-Nama in Japan; and Citadines Place d’Italie Paris in France.

CLAS is also redeveloping Somerset Clarke Quay Singapore, a 192-unit serviced residence with a hotel license. Slated for completion this year, the development is expected to begin contributing income from early 2027.

CLAS highlights that AEIs completed at its other properties are already paying off. For example, Citadines République Paris, upgraded in 2025, posted an 18% jump in revenue per available unit (Revpau) in 2Q2026 compared with the same period in 2024. Sheraton Tribeca New York Hotel also completed its AEI early, positioning it to capture demand during the FIFA World Cup held from June 11 to July 19.

However, the initiatives, together with CLAS’ active capital recycling, have resulted in near-term costs. CLAS reported a gross profit of $161.6 million for 1H2026, 11% lower y-o-y. The decline comes off the back of lower revenue, which dipped 7% y-oy- to $370.9 million.

CLAS’s core distribution income for 1H2026 was impacted by transitional factors, including timing differences in acquisitions and divestments, the AEIs, and one-off tax adjustments, says the trust. However, on a same-store basis, operating performance remained resilient, with Revpau rising 1% y-o-y in 1H2026. CLAS.

Despite the lower gross profit, income available for distribution rose 11% y-o-y to $107.1 million for the period, due to non-periodic gains arising from the settlement of cross-currency interest rate swaps and repayment of foreign currency bank loans.

Total distribution inched up 1% y-o-y to $97.5 million, after retaining $9.6 million in non-periodic items. Meanwhile, DPS remained unchanged from the year before at 2.53 cents.

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CapitaLand Ascott Trust sharpens portfolio, delivers DPS of 2.53 cents for 1H2026

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