ARA H-Trust posts US$2m distributable income

[SINGAPORE] ARA US Hospitality Trust (ARA H-Trust) posted a distribution income of US$2 million for the full year ended Dec 31, 2021, which works out to a distribution per stapled security (DPS) of 0.355 US cent.

This was unlike the previous year, when there was no distributable income.

Net property income came in at US$24.9 million in FY2021, reversing from a net property loss of US$5 million the previous year.

Revenue was up 67.2 per cent to S$130.7 million for the full-year, from S$78.2 million the year before.

Operating profit jumped 218.7 per cent to US$40.5 million for FY2021 versus the US$12.7 million the previous year.

The ARA H-Trust portfolio had benefited from recovering domestic travel and hotel demand, which led to sequential improvements in quarterly performance across all brands, it said in a statement.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

For FY2021, the portfolio posted an average occupancy and average daily rate of 57.1 per cent and US$112, respectively.

Lee Jin Yong, chief executive of the managers, said: "The US economy is booming as the disruptions from Covid-19 diminish and the pandemic transitions to an endemic. The expected return of corporate and group demand will further bolster recovery and stoke renewed optimism for the US lodging industry in 2022 and beyond."

On Feb 23, 2022, the managers also successfully obtained new 3-year unsecured loan facilities amounting to US$95 million from the existing lenders, to refinance loans maturing in FY2022 and FY2023.

ARA H-Trust, which listed on the Singapore Exchange in May 2019, is a stapled group comprising ARA US Hospitality Property Trust, a real estate investment trust, and ARA US Hospitality Management Trust, a business trust.

Stapled securities of ARA H-Trust ended Wednesday at US$0.53, up US$0.010 or 1.9 per cent.