HMN, Q5T, J85, 8C8U & XZL Post Higher H2 Revenue and Payouts

Hospitality and lodging real estate investment trusts in Singapore (S-REITs) have shown robust operating performance, with mostly stable to higher distributions in their latest earnings reports.

Across the five trusts that focus on hospitality and lodging assets, four have reported higher revenue and total distributions in the latest financial period ended Dec 2025.

1. $CapLand Ascott T(HMN.SI)$

CapitaLand Ascott Trust (CLAS) – which marks the 20-year anniversary of its SGX listing this month – saw revenue grow 4% in the second half to S$439.1 million, while its distribution per stapled security (DPS) also rose to S$0.0358 from S$0.0355.

The increase in distributions was driven by stronger operating performance, portfolio reconstitution, and higher non-periodic items.

Lui Chong Chee, chairman of the managers of CLAS noted in the Jan results announcement that since listing on SGX two decades ago, CLAS has grown its distribution income at a compounded annual growth rate of about 12% and delivered a total return of more than 250% to stapled securityholders.

CLAS managers are progressing towards its medium-term portfolio allocation of 25 to 30% in the living sector, while maintaining the remainder in hospitality assets to further enhance the resilience of CLAS’ portfolio.

2. $Far East HTrust(Q5T.SI)$

Elsewhere, Far East Hospitality Trust (FEHT) reported a stronger second half, supported by improved performance at its commercial premises and contributions from its Japan hotel acquisition. Gross revenue rose 9% on year, while core DPS excluding divestment gains rose 13.2% to S$0.0180.

While softer corporate and leisure demand in the first half weighed on room rates, amid fewer large-scale events, operating conditions improved in the second half.

3. $CDL HTrust(J85.SI)$

Meanwhile, CDL Hospitality Trusts reported 7.2% year-on-year increase in gross revenue for the second half, supported by stronger contributions from the Singapore, Australia, New Zealand, Japan and UK portfolios.

Interest expense for 2H 2025 fell 14.6% driven by refinancing initiatives as well as the easing of interest rates. The lower interest expense and improved operating performance contributed to DPS rising 0.4% on year in the second half.

4. $Cent Accom REIT(8C8U.SI)$

Centurion Accommodation REIT (CAREIT)– which listed on SGX in Sept 2025 – similarly delivered robust results for the financial period ended Dec, with revenue and DPU coming in above the IPO forecasts.

Revenue was 3.4% higher at S$50.7 million, while its DPU of S$0.01739 was also 6.7% above forecasts. The living sector REIT maintained near‑full occupancy across its worker accommodation and student housing portfolios.

CAREIT’s manager said it is focused on driving organic value while leveraging its strong balance sheet to pursue accretive acquisitions. The REIT has an aggregate leverage of 30.7% following the acquisition of Epiisod Macquarie Park, with debt headroom of S$348.0 million based on a 40% leverage threshold.

Most of the hospitality S-REITs also highlighted the importance of capital management in their latest earnings.

FEHT reported a lower weighted average cost of debt and its manager noted that the trust is well positioned to pursue selective yield-accretive opportunities, with its strong balance sheet and ample debt headroom. Gearing as of Dec 2025 stood at 33 per cent.

Similarly, CLAS gearing decreased to 37.7%, comfortably within regulatory limits, providing ample debt headroom for future opportunities.

5. $Acro HTrust USD(XZL.SI)$

While most of the hospitality S-REITs saw growth in H2, Acrophyte Hospitality Trust’s revenue and distributable income slipped in FY2025, as operational performance was impacted by the continued disposition strategy of non-core assets and disruption from brand-mandated renovations at seven of its higher performing hotels.

However, its manager noted that continuously improving the overall quality of the portfolio is critical to preserving value and enhancing returns to stapled securityholders

Asset enhancement initiatives (AEIs) also feature across most portfolios as managers seek to drive future growth. While such works can temporarily disrupt earnings, managers view these as necessary investments to maintain competitiveness and protect long‑term value.

CLAS also has planned enhancements in key gateway cities such as London, Sydney and New York, while CAREIT also continues to evaluate selective AEI opportunities across its student accommodation portfolio, including bed reconfiguration and refurbishment works.

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