CDL Hospitality Trusts' Q1 DPU down 3.7%

Singapore

TOTAL distribution per stapled security (DPS) for CDL Hospitality Trusts (CDLHT) declined 3.7 per cent to 2.09 Singapore cents for the first quarter to March 31, from 2.17 Singapore cents a year ago.

Total distribution to stapled securityholders, after retention for working capital, stood at S$25.3 million, down 3 per cent year on year.

Revenue shrank 10.6 per cent to S$46.3 million for the first quarter, while net property income (NPI) also fell 10.7 per cent to S$33.8 million, the group reported on Tuesday.

The lower NPI was primarily due to downtime at two of CDLHT's properties - Orchard Hotel in Singapore and Dhevanafushi Maldives Luxury Resort in the Maldives - both of which had ongoing renovation works.

Interest expense for Q1 rose by S$1.3 million, mainly due to additional loans for the acquisition of Italy's Hotel Cerretani Florence, renovation works and higher funding cost.

"CDLHT is going through a transition period due to major asset enhancement initiatives which have dampened our overall results in the near term," said Vincent Yeo, chief executive of CDLHT's managers.

"The benign hotel supply growth in the next few years will provide a constructive environment for improvement in the performance of the Singapore hotel sector," he added.

CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust and CDL Hospitality Business trust.

The counter closed flat at S$1.60 on Tuesday.