Should I buy Ascott Residence Trust stock in 2025?

What is Ascott Residence Trust?

How much is Ascott Residence Trust stock?

The price of Ascott Residence Trust stock is rising this week. As of now, the unit trades at S$0.855 with a 24-hour change of -0.58% and a weekly gain of +0.59%. The REIT boasts a market capitalization of S$3.26 billion, with an average 3-month daily volume of 5.83 million shares.

Its price-to-earnings (P/E) ratio stands at 14.37, accompanied by an attractive dividend yield of 7.13% and a relatively low beta of 0.77. With stable income sources and robust yield, Ascott Residence Trust may appeal to investors seeking steady returns and manageable volatility in the Singapore market.

Our full analysis on Ascott Residence Trust stock

Having undertaken a rigorous review of Ascott Residence Trust's most recent financial results and the stock’s evolution over the past three years, we have deployed a suite of proprietary analytics that synthesise technical metrics, core financials, sector intelligence, and peer benchmarking. This multifaceted approach confirms several emerging signals in the stock’s underlying structure and momentum, pointing to renewed strength in the hospitality REIT segment. So, why might Ascott Residence Trust once again become a strategic entry point into regional real assets as we approach 2025?

Recent Performance and Market Context

Ascott Residence Trust (“CLAS”) continues to demonstrate strategic resilience and growth within the Asia Pacific hospitality REIT landscape. As at May 20, 2025, shares are trading at S$0.855, yielding a market capitalization of S$3.26 billion. While the last year has seen a -6.56% retreat, recent trends point to stabilisation: the weekly move is positive at +0.59% and the 6-month decline of -1.72% is narrowing. Importantly, the Trust’s fundamentals have weathered a period of sector volatility prompted by rising rates and property market uncertainty.

Crucially, Q1 2025 results highlighted a 4% year-on-year increase in gross profit, with occupancy improving to 77% (from 73% in Q1 2024), and a corresponding uplift in RevPAU to S$141 (+4%). The completion of DPU-accretive acquisitions in Japan, ongoing asset enhancement initiatives (AEIs), and nimble asset recycling reinforce the positive narrative. Regionally, the hospitality sector is benefiting from post-pandemic travel normalisation and stable economic outlooks in Singapore and key overseas markets, setting a solid backdrop for higher yields and cashflow stability in the coming quarters.

Technical Analysis

From a technical perspective, Ascott Residence Trust presents a structure poised for potential bullish continuation:

• Relative Strength Index (RSI 14): At 53.134, RSI is neutral, indicating plenty of room for upward momentum without risk of an overbought scenario.
• MACD: Neutral at 0.000, yet with a positive skew based on price action.
• Moving Averages: All key averages (20/50/100/200 day) are trading at or just above the current price, with each generating a technical ‘buy’ signal. This convergence suggests strong underlying support and an emerging uptrend:
• 20-day MA: S$0.859 (Buy)
• 50-day MA: S$0.857 (Buy)
• 100-day MA: S$0.856 (Buy)
• 200-day MA: S$0.853 (Buy)
• Support Levels: Significant support at S$0.852 and S$0.849, offering downside protection.
• Resistance Levels: First short-term resistance at S$0.859, with a break here potentially accelerating momentum towards S$0.862 and beyond.

The technical summary remains neutral with a bullish bias, supported by recent price stability and favorable trend signals in the medium term—a structure often preceding renewed buying interest at multi-quarter lows.

Fundamental Analysis

CLAS stands out on fundamentals with its well-diversified S$8.8 billion portfolio spanning 95 properties and 17,000+ units in 15 countries, anchored by flagship assets across Singapore, Asia Pacific, Europe, and the US. The Trust reported S$809.5 million in total FY2024 revenue and S$226.8 million in net income, with EPS of S$0.06 and a robust 6.10 Singapore cent DPU.

• Valuation Compelling: At a P/E of 14.37 and a Price/Book of just 0.68, CLAS is trading below the replacement value of quality global hospitality assets, while its forward dividend yield of 7.13% significantly exceeds sector and market averages.
• Structural Strengths:
• Market leader as Asia Pacific’s largest lodging trust.
• Strategic asset recycling and accretive acquisitions, such as the Japan deals at a blended NOI yield of 4.3%, highlight clear execution of growth strategies.
• Recovery in both occupancy (still 7pp below pre-COVID highs) and RevPAU points to material organic upside.
• Management continuity, with Temasek as anchor shareholder (23.61%), fortifies governance and long-term vision.

This blend of resilient earnings growth, undervaluation relative to asset book, and structural leadership - underpinned by disciplined capital management (38% gearing, S$2bn debt headroom) - sets a strong foundation for multiple expansion and yield re-rating.

Volume and Liquidity

CLAS enjoys an average daily trading volume of 5.83 million shares over 90 days, reflecting robust liquidity and sustained interest from institutional and retail participants. The stock’s large and active float has ensured fluid price discovery and efficient valuation dynamics, supporting attractive entry and exit points for a diverse range of investors. The liquidity depth underscores the market’s confidence in the REIT’s long-term income stability and dividend track record, promoting valuation integrity over business cycles.

Catalysts and Positive Outlook

Several forward-facing catalysts strongly reinforce the positive outlook:

• Asset Enhancement Initiatives: Six major upgrades scheduled for completion in FY2025, likely to drive further yield and NAV appreciation.
• Accretive Acquisitions: The recent Japan properties are immediately DPU-accretive, demonstrating management’s agility in seizing cross-border growth.
• Flagship Development: The 2026 completion of Somerset Liang Court will increase Singapore portfolio room count, positioning CLAS for the next upcycle in hospitality demand.
• Organic Recovery: Ongoing post-pandemic normalisation in global travel and corporate mobility is set to close the remaining occupancy gap—currently still about 7 points from pre-COVID levels.
• Asset Recycling: With over S$300 million in divestment gains ready for redeployment, management can offset temporary AEI income loss and capitalise on opportunistic deals.
• Long-Stay Segment Focus: A medium-term target to reach 25-30% AUM in long-stay accommodation diversifies income streams and lowers volatility, enhancing resilience.
• Sustainability and Governance: CLAS’s disciplined leverage (38% gearing), prudent payout policy (≥90% of distributable income), and seasoned leadership create a trust with enviable credentials in governance and risk management.

These catalysts are already being recognized by the market, with nine analysts assigning an “OUTPERFORM” consensus and an average target price of S$1.04 (implying 21.6% upside from current levels), while key brokers such as DBS and Phillip Securities set even higher near-term targets.

Investment Strategies

• Short-Term Strategy:
• The current share price is consolidating just above support levels (S$0.852, S$0.849) and below initial resistance (S$0.859), suggesting an ideal technical entry zone for traders seeking a rebound or pre-catalyst uplift.
• Elevated, yet stable, trading volume increases the probability of efficient execution and price traction on positive news or technical triggers.
• Medium-Term Strategy:
• The progress of asset enhancements and incoming revenue streams from Japanese acquisitions through FY2025–26 will likely sustain a positive rerating.
• Positioning ahead of the anticipated completion of major AEIs (six by end–2025) and key portfolio upgrades enables investors to benefit from gradual DPU and NAV acceleration.
• Long-Term Strategy:
• Core income stability from a globally diversified portfolio, superior dividend yield, and disciplined, proactive capital allocation positions CLAS as a structural beneficiary of the continued rebound in corporate and leisure travel.
• The long-stay and student accommodation focus provides resilience and recurring growth, appealing for income-oriented and defensive portfolios.

Across all timeframes, CLAS’s price structure implies a favorable risk/reward profile, especially for those targeting quality income streams and inflation-hedged real asset exposure.

Is it the Right Time to Buy Ascott Residence Trust?

Summing up: Ascott Residence Trust brings together a unique combination of defensive qualities and growth leverage in one of Asia’s most attractive real estate sub-sectors. The Trust offers:

• Region-leading scale with unmatched portfolio diversification.
• Clear value with its Price/Book at just 0.68 and a sector-leading 7.13% dividend yield.
• Visible catalysts across acquisitions, asset upgrades, and organic recovery in occupancy and rates.
• Strong, proven management and a robust balance sheet with substantial expansion headroom.
• Broad-based analyst conviction, with consensus price targets projecting meaningfully higher levels over the next 12 months.

With its shares trading close to support, solid technical signals indicating a bias for a new bullish phase, and a pipeline of growth drivers on track for 2025 and beyond, the stock seems to represent an excellent opportunity for investors seeking stable income and capital appreciation in the evolving hospitality REIT sector. The fundamentals, technicals, and strategic outlook all converge to justify renewed interest in Ascott Residence Trust at current prices.

For those exploring resilient, yield-driven exposure with built-in growth levers, Ascott Residence Trust may well mark a strategic entry point in the coming year—a conviction that is increasingly reflected in the market’s upward tilt and the stock’s favorable positioning for 2025.

How to buy Ascott Residence Trust stock in Singapore?

Buying CapitaLand Ascott Trust stock online is both simple and secure when you use a regulated Singapore-based broker. Investors in Singapore can choose between two main methods: traditional spot buying, which involves purchasing actual shares and becoming a unit holder, or Contracts for Difference (CFDs), which let you speculate on price movement without owning the underlying asset. Each method has its own features, costs, and opportunities. To find the most suitable platform and fee structure for your needs, we recommend reviewing our broker comparison further down the page.

Cash buying

A cash purchase means you buy CapitaLand Ascott Trust (SGX: HMN) units directly on the Singapore Exchange (SGX) and become an actual investor in the Trust, with rights to distributions (dividends) and voting. Most Singapore brokers charge a fixed commission per order, typically around S$5–S$10, plus a small clearing fee.

Important example

Example with a S$1,000 stake: The current CapitaLand Ascott Trust share price is S$0.855. With S$1,000 (including an average brokerage fee of S$5), you could buy approximately 1,163 units ((S$1,000 – S$5) ÷ S$0.855 ≈ 1,163).

Gain scenario

✔️ Gain scenario: If the share price climbs by 10% and reaches S$0.940, your units would be worth about S$1,100.
Result: +S$100 gross gain, i.e., +10% on your investment (excluding any dividends received).

Trading via CFD

CFD (Contract for Difference) trading enables you to speculate on the price movements of CapitaLand Ascott Trust units without owning them. This method is popular for its flexibility and potential to use leverage, but it comes with risks and additional fees. Instead of commissions, main costs include the spread (difference between buy/sell prices) and overnight financing charges if you hold positions for more than a day.

Important example

Example with a S$1,000 stake and 5× leverage: You open a CFD position equivalent to S$5,000 exposure (S$1,000 margin × 5).

Gain scenario

✔️ Gain scenario: If CapitaLand Ascott Trust rises by 8%, your exposure earns 8% × 5 = 40%.
Result: That’s a +S$400 gain on a S$1,000 position (excluding spread and overnight fees).

Final advice

Before investing, it’s essential to compare brokers’ fees, trading tools, and the quality of their support services—all of which can impact your returns. Your choice between direct share buying and CFD trading should be guided by your investment objectives, risk appetite, and whether you seek passive income (dividends) or short-term trading opportunities. To help you find the right platform and fee structure for your needs, see our broker comparison tool further down this page.

Our 7 tips for buying Ascott Residence Trust stock

The latest news about Ascott Residence Trust

Ascott Residence Trust posted a 4% year-on-year growth in gross profit and improved operating metrics in Q1 2025. The latest quarterly results reflect higher profitability fuelled by better operating performance and new property contributions, with Portfolio Revenue Per Available Unit (RevPAU) up 4% to S$141 and average occupancy rising to 77% from 73% a year earlier. These trends highlight a steady recovery in the trust’s underlying hospitality business, especially relevant to the Singapore market where local occupancy and tourism-related demand are rebounding after pandemic-related disruptions.

The trust completed two DPU-accretive acquisitions in Japan at a blended NOI yield of 4.3%, strengthening its income profile. Both acquisitions, closed during Q1 2025, are expected to contribute positively to distributable income, reflecting management’s ability to execute on accretive deals and diversify outside Singapore while still benefiting local investors through higher sustainable distributions. The focus on income-producing international assets underlines portfolio resilience, while Singapore remains a central hub for the trust’s operations and investor base.

CapitaLand Ascott Trust’s technical signals have shifted to a slight bullish bias, supported by its moving averages trading above support levels. Short- and long-term moving averages all indicate a ‘buy’ signal, with the 20-, 50-, 100-, and 200-day averages trending at or above the current price. With the share price now at S$0.855, near the higher end of its 52-week range and resistance levels, local market sentiment shows cautious optimism. Average trading volume remains robust at 5.83 million shares per day, underscoring liquidity and investor engagement on the SGX.

Analyst consensus remains highly favourable, with a mean “OUTPERFORM” rating and average target price indicating over 20% upside. Nine analysts currently cover the stock, and houses such as DBS and Phillip Securities reaffirm their “BUY” calls with price targets of S$1.15 and S$1.05, respectively. This reflects institutional confidence in the trust’s Singapore-rooted growth, dividend sustainability (forward yield: 7.13%), and the successful execution of its expansion and enhancement strategies.

Singapore-focused portfolio growth is underway, with local unit expansion and strategic asset recycling to drive medium-term upside. Completion of new projects, such as Somerset Liang Court in 2026, is set to increase Singapore room count and support DPU growth, while the recent divestment of Citadines Mount Sophia aligns with an agile asset recycling approach to maximize returns and efficiently deploy capital. These initiatives, backed by a healthy gearing level (38%) and strong sponsorship (Temasek Holdings), position CapitaLand Ascott Trust as a robust, locally anchored REIT with clear pathways for growth and value creation for Singapore investors.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.