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CDL Hospitality Trusts posts Q2 DPSS of 2.25 cents, down 10%
CDL Hospitality Trusts (CDLHT) reported a distribution per stapled security (DPSS) of 2.25 cents for the second quarter, down 10 per cent from its 2.50 cent distribution in the same period last year.
Gross revenue grew by 3 per cent from a year ago to S$39 million, thanks to contribution from the newly acquired Japan hotels, and a revenue increase at its Maldives resorts which was partly buoyed by a stronger US dollar. This, was, however, partially offset by reduced contribution from its hotels in Singapore, Australia and New Zealand.
Net property income gained 0.9 per cent to S$31.6 million.
Income available for distribution - after deducting income retained for working capital - worked out to S$24.6 million, down 9.2 per cent year-on-year. It does not include contribution from the Japan hotels as this is only available for distribution in the fourth quarter, after the financial results of its Japanese subsidiary for the first fiscal year are audited.
Said CDLHT manager's CEO Vincent Yeo: "Our geographically diversified portfolio has continued to generate stable hotel earnings in 2Q 2015 in spite of the unfavourable trading conditions in some of our markets."
"Our income available for distribution was dampened by the exclusion of the contribution from the Japan Hotels and higher financing costs," he added. "The higher financing costs have arisen partially from increasing the duration of fixed interest rate borrowings to mitigate the effects of future interest rate rises."