Engagement With The Management Team Of CapitaLand Ascott Trust

Hazelle

Last week, we had the privilege of attending a closed-group dialogue session with the management team of CapitaLand Ascott Trust (CLAS) to delve deeper into their recent asset acquisitions, AEI and divestment strategies.

Photo with Ms. Serena Teo, CEO of CapitaLand Ascott Trust

CLAS is the largest lodging trust in Asia Pacific with an asset value of S$8.5 billion as at 31 March 2024. Its international portfolio comprises 102 properties with more than 18,000 units in 45 cities across 16 countries in Asia Pacific, Europe and the United States of America as at 31 March 2024.

CLAS maintains its competitive edge through active management of their portfolio by investing in high quality lodging assets in prime locations. The team also works closely at recycling capital from non-core assets or assets that may be operating near end cycle to put them into more effective investments in high quality assets.

Among the insightful sharing by Ms. Serena Teo, CEO of CLAS, there was one statement that resonated with me, “We can’t control the macros and forex fluctuations, but what we can control is where we operate in.” A seemingly simple thought, yet the mindset is powerful. I find that it works the same for investing too. This applies to investing as well: many investors become overly focused on predicting macroeconomic and political factors like recessions, presidential election even though these factors are often beyond our control. Instead, what we can control—and what drives success over the long term—is our portfolio composition: what we buy, and the price we pay.

Ms. Serena Teo sharing on the business update for Q3 2024 & proposed acquisition of lyf Funan

Ms. Serena Teo also shared about the proposed acquisition of lyf Funan Singapore. Proceeds from the divestment of Citadines Mount Sophia Singapore, completed in March 2024, are being allocated toward this acquisition. The exit yield from the divestment was 3.2%, with reinvestment proceeds targeting an EBITDA yield of 4.7% on a FY 2023 pro forma basis.

The session concluded with an engaging tour of lyf Funan, an innovative space blending flexible communal areas for social activities with hotel amenities. It’s a forward-thinking concept designed to meet the needs of modern, connected travelers, showcasing how CLAS is responding to the evolving demands of today’s society.

A guided tour of the rooms and amenities such as the Social Kitchen for guests to do their cooking

All in all, it was a great learning experience and an inspiring look into how CapitaLand Ascott Trust continues to build value through strategic foresight, adaptability, and a clear vision for the future of hospitality and real estate.

Great to re-connect with industry friends at the session too!

About Hazelle

Chief trainer of The Moneyball Investors Playbook program and founder of The Joyful Investors, a financial education firm that seeks to help avid investors learn to invest better and make the journey a joyful one. I graduated with a first class honors in Bachelor of Accountancy from Nanyang Technological University (NTU) and started my auditing career in one of the Big Four. I believe that once we know how to build our wealth sustainably, we can then live our best lives ever.

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