Should I buy Capitaland Ascott Trust stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Capitaland Ascott Trust for more than three years. Every month, hundreds of thousands of users in Singapore rely on us to interpret market trends and pinpoint the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical standards, we have never been, and will never be, compensated by Capitaland Ascott Trust.

What is Capitaland Ascott Trust?

How much is Capitaland Ascott Trust stock?

The price of Capitaland Ascott Trust stock is rising this week. As of May 9, 2025, the current price stands at S$0.85, reflecting a 0.5% increase in the past 24 hours and a 2.3% gain over the week.

The trust’s market capitalization is S$3.24 billion, with an average 3-month trading volume of about 8.2 million shares. Its P/E ratio is 14.29, supported by an attractive dividend yield of 7.17%. With a beta of 0.77, CLAS displays lower volatility than the broader market, making it a potentially stable choice for yield-seeking Singapore investors.

Our full analysis on Capitaland Ascott Trust stock

CapitaLand Ascott Trust’s (SGX: HMN) latest quarterly release and its three-year stock trajectory have captured our attention, revealing a blend of financial resilience and compelling value. Leveraging proprietary algorithms that integrate key financial metrics, technical indicators, multi-market data, and peer benchmarks, we’ve rigorously reassessed CLAS’s outlook. So, why might CapitaLand Ascott Trust stock once again become a strategic entry point into the high-yield, globally diversified real estate sector in 2025?

Recent Performance and Market Context

CLAS has demonstrated remarkable resilience during volatile market conditions, underpinned by its robust S$3.24 billion market capitalisation and a strategic foothold as Asia Pacific’s largest lodging trust. The share price has rebounded 10% from its 52-week low of S$0.770 to close at S$0.85 as of 9 May 2025, indicating renewed investor confidence and underscoring the market’s appetite for yield-oriented REITs in a rising rate environment.

Key positive developments have set the stage for a bullish narrative. In Q1 2025, CLAS achieved a 4% year-on-year increase in both gross profit and portfolio RevPAU, with average occupancy surging from 73% to 77%. Recent accretive acquisitions—including two prime Japanese hotels and lyf Funan Singapore—have augmented the quality of the portfolio, while a well-executed divestment strategy has unlocked over S$500 million in value at substantial premiums to book. The lodging REIT sector’s favorable macro backdrop, supported by robust tourism flows, resilient domestic demand in Asia’s economic engines, and a global search for alternative yield, further enhances CLAS's appeal.

Notably, sector comparables remain challenged by slower growth and inconsistent income bases, positioning CLAS distinctively for stable long-term income. The stock’s region-leading dividend yield (7.17%) and its inclusion in the FTSE EPRA Nareit Global Developed Index amplify visibility and investor access on a global stage.

Technical Analysis

Technically, CLAS is sending encouraging signals to medium- and long-term investors. The Relative Strength Index (RSI-14) stands at 51, highlighting a neutral position that reflects an absence of overbought or oversold pressure—fertile ground for renewed momentum. The Moving Average Convergence Divergence (MACD) indicator is marginally negative (-0.001), yet the share is trading above its 200-day moving average (S$0.845), a classic indicator of a persistent uptrend.

Short-term price action reveals robust support at the S$0.82–0.83 range, providing a cushion against downside volatility, while the S$0.885–0.90 zone forms a logical near-term resistance. This dynamic suggests a consolidation phase that often precedes breakout phases for quality REITs. With the 50-day moving average (S$0.855) just overhead, any increase in trading activity or fundamental catalyst could propel the stock into a new bullish phase. The technical structure, with its distinct upward bias and historically low beta (0.77), favors accumulation strategies in anticipation of sector rotation inflows and risk-on sentiment.

Fundamental Analysis

The fundamental case for CLAS is exceptionally strong. Revenue and profitability are on solid footing, evidenced by a 4% YoY jump in Q1 gross profit, a consistent uptrend in RevPAU across key international markets, and a robust same-store earnings improvement. Strategic expansions—notably the S$530 million in quality accretive acquisitions and impactful asset enhancements—have concurrently elevated income visibility and growth potential.

Valuation metrics underscore an attractive entry. The trust trades at just 0.68 times book value, offering a significant margin of safety versus its S$1.15 NAV per stapled security. While the current P/E ratio (14.3x) stands modestly above the sector average (10.7x), this premium is more than justified by CLAS's leading dividend yield (7.17%), payout stability, and regional market leadership. The payout ratio of 94.82% signals optimisation for income delivery, which further supports the trust’s standing among income-seeking portfolios.

• Diversified Asset Base: Over 102 properties spanning 16 countries, balancing serviced residences, hotels, and extended-stay segments.
• Stable Income Framework: 70% of gross profit derived from master leases and minimum-guarantee contracts, insulating returns from cyclical volatility.
• Brand Equity: Backed by CapitaLand—a top Asia-Pacific sponsor—CLAS enjoys unparalleled scale and sourcing power, supporting ongoing expansion and defensibility.
• Sustainability Initiatives: Steadfast in ESG, through innovative AEI (Asset Enhancement Initiatives) and the adoption of green building standards.

Volume and Liquidity

Liquidity metrics further enhance the investment rationale. CLAS consistently posts healthy trading volumes, demonstrating robust institutional and retail participation and minimising liquidity risk for new entrants. The relatively high float, combined with inclusion in global benchmark indices, facilitates transparency and pricing efficiency—factors critical for market confidence and dynamic valuation adjustment.

Strong liquidity (S$1.43 billion in cash and undrawn credit) and prudent leverage (gearing of 39.9%) equip the trust to capitalise on emerging opportunities without jeopardising payout stability or expansion capacity. This fortifies the trust’s ability to deploy capital nimbly, amplifying long-term value.

Catalysts and Positive Outlook

• Portfolio Reconstitution: Continued rotation out of lower-yielding assets and redeployment into higher-yielding, growth corridors (notably Japan, Australia, and Europe) will underpin NPI and distributable income.
• Asset Enhancement and Developments: Ongoing AEI projects and the strategic Somerset Liang Court Singapore (due 2026) signal non-organic growth levers that may contribute significant incremental income and portfolio uplift.
• ESG Leadership: Increasing investor preference for sustainable, ESG-compliant assets bodes well for CLAS, whose ongoing enhancements align with green investment flows and compliance initiatives.
• Macro Tailwinds: The upsurge in regional travel, the recalibration of supply chains, and supportive policy environments in key Asian economies collectively form a high-visibility upward context.
• Interest Rate Cycles: The trust exhibits measured interest-rate sensitivity, with approximately 76% of debt on fixed rates, which protects distributable income even in a moderately rising rates environment.
• Analyst Endorsements: Multiple brokerages reiterate “Buy” ratings, with target prices averaging S$1.04—implying more than 22% upside from current levels and serving as an institutional vote of confidence.

Investment Strategies

• Short-term (tactical):
• Trading near technical support, the stock exhibits a risk-reward skew that is favorable for near-term rebound plays.
• Elevated dividend yields, combined with sector rotation tailwinds, bolster total return potential even in low volatility environments.
• Medium-term (positioning for 2025–2027):
• Anticipated income accretion from AEI completions and new acquisitions could catalyse a re-rating as investors re-price sustainable yield and portfolio resilience.
• Progress on development projects and integration of recent accretive deals position CLAS at the inflection point of an income recovery cycle.
• Long-term (strategic):
• The trust’s defensive income profile, strategic global diversification, and strong sponsor backing provide a platform for sustained compounding of distributions.
• As yield-seeking capital continues to rise in Asia and beyond, CLAS’s track record and stability appear primed to attract both institutional and retail funds.

In all scenarios, the current valuation—trading well below book and NAV, but with best-in-class yield—suggests an excellent opportunity for portfolio allocation ahead of impending catalysts.

Is It the Right Time to Buy CapitaLand Ascott Trust?

In summary, CapitaLand Ascott Trust stands at a nexus of value, growth, and income. Its diversified global platform, robust and stable dividend profile, and active management discipline stand out in the current market. Key technical and valuation indicators point to a stock at an attractive entry zone, while forward catalysts—from asset enhancements to regional travel rebounds and compelling new developments—position CLAS for outperformance into 2025 and beyond.

• Key strengths recap:
• Market leadership and global scale
• Attractive, sector-leading dividend yields
• Prudent management of gearing and liquidity
• Ongoing strategic upgrades and expansion
• Strong analyst support and visible upside to consensus target prices

For investors seeking access to a defensive, high-yield REIT with significant potential for capital appreciation, the case for serious consideration of CLAS as a timely addition to a diversified portfolio appears fundamentally sound and increasingly attractive. With a confluence of technical stability, favorable valuation, and forward-looking growth strategies, CapitaLand Ascott Trust may well be poised to enter a new bullish phase—offering a rare combination of stability and growth that stands out in today’s Asian real estate landscape.

As the market continues to search for resilient yield and exposure to Asia’s secular growth trends, CLAS seems to represent an excellent opportunity for investors looking to build conviction in a premier, future-ready lodging trust.

How to buy Capitaland Ascott Trust stock in Singapore?

Buying CapitaLand Ascott Trust (SGX: HMN) stock online is a straightforward and secure process for investors in Singapore, provided you use a regulated broker. Today’s digital platforms offer two main approaches for buying CLAS shares: spot (cash) buying, where you own the actual shares, or CFD (Contract for Difference) trading, which lets you speculate on price movement with leverage but without ownership. Both methods are accessible, user-friendly, and designed with investor protection in mind. To choose the broker best suited to your needs and compare key fees, be sure to check our broker comparison tool further down the page.

Spot Buying

A cash purchase means you buy CapitaLand Ascott Trust shares directly on the Singapore Exchange and become a registered shareholder, entitling you to dividends and voting rights. In Singapore, regulated brokers typically charge a fixed commission per trade, usually between S$2 and S$10 for a retail order.

Important Example

Example: Suppose the current share price is S$0.85. If you invest S$1,000 and pay a flat brokerage fee of S$5, you can buy approximately 1,170 shares (S$1,000 - S$5 fee = S$995, S$995/S$0.85 ≈ 1,170 shares).
✔️ Gain scenario: If the share price increases by 10% to S$0.935, your shares would now be worth S$1,099.50.
Result: S$99.50 gross gain, or about +10% on your investment, excluding other possible fees.

Trading via CFD

CFD trading lets you benefit from price movements of CapitaLand Ascott Trust shares without owning the shares outright. Instead, you enter a contract with the broker to exchange the difference in price from opening to closing the trade. CFDs offer leverage—letting you control a larger exposure with a smaller capital outlay—but do not entitle you to dividends or shareholder rights. Main fees include the bid-ask spread (the difference between buy and sell price) and potential overnight financing charges if you keep positions open for more than one day.

Important Example

Example: With S$1,000 and 5x leverage, you open a CFD on CLAS shares, exposing you to S$5,000 of market movement.
✔️ Gain scenario: If the stock price rises by 8%, your leveraged position returns 8% × 5 = 40%.
Result: You earn S$400 gain on your initial S$1,000 outlay (excluding spread and financing costs).

Final Advice

Before investing, it is essential to carefully compare the fees and conditions offered by various brokers, as charges can significantly impact your returns over time. For detailed side-by-side comparisons, see our broker tool further down the page. Ultimately, your choice between spot purchase and CFD trading should depend on your personal investment goals, trading experience, and risk tolerance. Whether you’re focused on long-term income and dividends or short-term price movements, CapitaLand Ascott Trust offers diverse strategies for Singapore investors ready to participate in Asia’s leading lodging trust.

Our 7 tips for buying Capitaland Ascott Trust stock

The latest news about Capitaland Ascott Trust

CapitaLand Ascott Trust posts steady Q1 2025 financial performance with growth in gross profit and occupancy. In its latest quarterly update, CapitaLand Ascott Trust (CLAS) reported a 4% year-on-year increase in gross profit for Q1 2025, supported by a rise in portfolio revenue per available unit (RevPAU) and a higher average occupancy rate of 77%, up from 73% in the same period last year. This operational strength is especially notable given continued travel recovery in key Asia Pacific and European markets, aligning with upbeat trends reported by the Singapore Tourism Board. The trust’s diversified portfolio—with significant exposure to Singapore’s lodging sector and resilient income from master leases and minimum-guaranteed contracts—continues to buffer it against market volatility.

CLAS maintains an attractive dividend yield and strong payout, supporting its appeal among Singapore income investors. The current dividend yield stands at 7.17%, significantly above the sector average and especially compelling in the present higher-for-longer interest rate environment. Distributions for FY2024 totalled 6.10 Singapore cents per stapled security, with the latest payout (for the period July–December 2024) of 3.550 Singapore cents made on February 28, 2025. While the payout ratio remains high at 94.82%, CLAS’s substantial base of stable, recurring earnings underpins distribution sustainability, a key decision point for Singapore-based REIT investors seeking yield.

Strategic portfolio reconstitution and acquisitions drive asset quality and future income growth. Over the past year, CLAS has proactively recycled capital, completing more than S$500 million in divestments at up to 55% premiums to book value, and redeploying approximately S$530 million into yield-accretive acquisitions. Recent additions of two freehold hotels in Japan and the integration of lyf Funan Singapore exemplify management’s focus on enhancing returns and diversifying the income base—with an emphasis on longer-stay and branded accommodation, segments relevant to evolving traveller demands and Singapore’s positioning as a regional business hub.

Technical indicators reflect a neutral to mildly positive near-term outlook for the stock. As of May 9, 2025, technical analysis indicates a balanced position: the Relative Strength Index (RSI) is neutral at 51, the stock price sits slightly below its 50-day moving average but above its 200-day moving average, suggesting continued long-term upward momentum. While some oscillators point to mild short-term softness, the medium- and long-term technical signals, combined with the ongoing strategic actions, point towards stability and upside potential for local market participants.

Consensus analyst outlook remains constructive with significant price upside targeted. Recent analyst actions reinforce a positive stance, with major brokers such as OCBC Investment Research and PhillipCapital reiterating their Buy calls and price targets clustered around S$0.99–S$1.05. The consensus target price of S$1.04 represents a potential 22.4% upside from the current S$0.85 level, reflecting confidence in the trust’s resilience, capital management discipline, and earnings visibility. This constructive analyst view, combined with its status as a constituent of key SGX and global indices, continues to position CLAS as a preferred pick among Singapore-focused yield and real asset 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.