ARA H-Trust H1 DPS rises 5.2% to US$0.01501 on higher revenue
ARA US Hospitality Trust (ARA H-Trust) posted a distribution per stapled security (DPS) of US$0.01501 for the first half-year ended Jun 30, up 5.2 per cent from US$0.01427 in the corresponding year-ago period.
The stapled group reported a 6.8 per cent increase in distributable income to US$8.7 million in H1 2023 from US$8.1 million in the same period in 2022.
The growth was attributed to higher gross operating profit and net property income, led by higher revenue offset by higher property taxes, the group said on Tuesday (Aug 8).
Revenue rose 5.9 per cent for the half-year period to US$86 million, from US$81.3 million in H1 2022.
Gross operating profit rose to US$30.7 million from US$27.6 million, an increase of 11.3 per cent compared to H1 2022. Net property income increased 4.3 per cent year on year to US$22 million from US$21.1 million.
The growth in revenue came as a result of the increase in occupancy and average daily rates.
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The portfolio’s average occupancy improved 6.2 percentage points to 68.9 per cent while the revenue per available room increased by US$15 to US$95 from US$80.
“While occupancy rates are slightly below pre-pandemic levels as corporate and group travel has yet to fully recover, strong increases in average daily rates have boosted revenue per available room,” said Lee Jin Yong, chief executive of the trust’s managers.
The distribution will be paid out on Sep 27, after the record date on Aug 18.
Going forward, the group maintains a positive outlook as the US lodging market continues to recover post Covid-19.
“Lodging demand remains resilient and continues to recover amid inflationary concerns and risks of economic slowdown, with momentum in the business and group demand segments boosting overall lodging demand,” said Lee.
As at Jun 30, ARA H-Trust’s aggregate leverage stood at 39.7 per cent, with signed commitments from its existing lender banks to refinance its outstanding secured term loans due to mature in May 2024.
ARA H-Trust is a stapled group comprising ARA US Hospitality Property Trust and ARA US Hospitality Management Trust.
Prior to the announcement, stapled securities of ARA H-Trust closed 4.4 per cent, or US$0.015, higher at US$0.36 on Monday.
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