You are here

CDL Hospitality Trusts posts slightly lower income available for distribution in Q3 2014 (Amended)

Tuesday, October 28, 2014 - 08:30

CDL Hospitality Trusts (CDLHT) posted an income available for distribution per stapled security - after deducting income retained for working capital - of 2.61 Singapore cents in the third-quarter of 2014, down slightly from 2.64 Singapore cents in the same period last year.

Gross revenue was S$40.1 million for July to September, up 11.9 per cent from S$35.9 in the corresponding quarter last year, due to the recognition of the full revenue of Jumeirah Dhevanafushi hotel, acquired last Dec 31, which contributed S$4.7 million in the third-quarter of 2014.

The Reit said its net property income grew by S$0.8 million, driven mainly by an increase of S$1.1 million from Jumeirah Dhevanafushi and S$0.5 million from its Singapore hotels.

But the growth was offset by a decrease of S$0.8 million from Claymore Link, which was mostly closed for asset enhancement works.

For the first nine months of the year, gross revenue went up by S$12.4 million, driven by the addition of Jumeirah Dhevanafushi and a gross rent increase for Angsana Velavaru.

Net property income rose by S$1.0 million, driven mainly by increases from Jumeirah Dhevanafushi and Angsana Velavaru, but this was offset by lower contributions from Singapore and Australia properties.

Income available for distribution per stapled security for the first nine months this year is 7.86 Singapore cents, down 2.4 per cent from 8.05 Singapore cents in the corresponding period last year.

In terms of its Singapore properties performance, the Reit said it enjoyed a record occupancy of 92.0 per cent in the third-quarter of 2014, due mainly to the increase in business volume.

It added that its Australia hotels continued to be affected by a slower Australian economy and lower activity levels in the mining sector, but that this was mitigated by the lease structure, which provides the trusts with a high proportion of fixed rent.

CDLHT noted that new room supply in Singapore is expected to grow at a compound annual growth rate of 4.5 per cent from 2013 to 2017, so the operating environment continues to be competitive; another 447 rooms are scheduled for opening by the end of 2014.

The Reit added that with its ample debt headroom, it will continue to focus on sourcing for acquisition opportunities.

An earlier version of this article incorrectly quoted the Reit as having said that its net property income grew by S$0.8 million, driven mainly by increases from two of its hotels, the Jumeirah Dhevanafushi and Singapore Hotel. The correct phrase should be "Singapore hotels", a phrase referring to CDL's six hotel properties in Singapore. 

Powered by GET.comGetCom