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Ascendas Hospitality Trust posts rise in Q1 DPU at 1.29 Singapore cents
HOTEL owner Ascendas Hospitality Trust on Thursday posted a 0.8 per cent increase in its distribution per unit (DPU) to 1.29 Singapore cents for its first quarter ended June 30, 2015.
Gross revenue dipped 0.8 per cent to S$52.4 million, while net property income climbed 5.5 per cent to S$22.6 million.
But the real estate investment trust said: "Excluding contribution from Cairns operations of S$1 million for Q1 FY2015/16, current year's gross revenue would be an increase of S$0.6 million over last year. Overall underlying performance of the portfolio has improved S$1 million over last year in local currency terms but the increase was partly offset by adverse currency movements in the Australian dollar (AUD) and the renminbi."
The trust had divested a hotel, Pullman Cairns International, in June 2015.
"On a same store basis (excluding Cairns operations), net property income for the current year would be S$1.5 million (7.3 per cent) higher than prior year," it added.
Looking ahead, it said that the weak Australian dollar is expected to drive both international arrivals and domestic travelling in Australia.
"This in turn will benefit the Australia hotel market in general. Sydney and Melbourne in particular are expected to remain attractive in the near term given their positions as major corporate centres and leisure destinations, with relatively modest supply of new hotel rooms. However, the supply of new hotel rooms in Brisbane is expected to continue in the near term, hence, the accommodation business in the city is likely to remain soft."
It added that the increased competition in the Beijing hotel market is expected to moderate its performance in the near term, and the market will continue to be supported by domestic travel.
"The Beijing railway network will be expanded over the next five years which will enhance accessibility of Beijing and help to boost domestic travelling to the capital city of China," it said.
"Despite the encouraging growth in inbound visitors to Singapore for the period (until) May 2016 of 13.3 per cent year on year, the hotel market in general will be challenging in the short term. The hotel market performance is expected to be affected by weakness in corporate demand compounded by the increased competition from the supply of new hotel rooms."
The trust has 11 hotel properties: six in Australia, two in China, two in Japan, and one in Singapore (Park Hotel Clarke Quay).
The counter rose half a cent to end at S$0.745 on Thursday.