You are here
CDLHT posts 4.8% fall in Q3 DPS to 2.18 S cents
MAINBOARD-LISTED CDL Hospitality Trust (CDLHT) posted a 4.8 per cent fall in its third quarter distribution per stapled security (DPS) to 2.18 Singapore cents, compared with 2.29 Singapore cents in the year-ago period.
Total distribution for the three months ended Sept 30, 2018 slid 3.9 per cent to S$26.33 million, while net property income (NPI) fell 10.2 per cent to S$36.23 million.
The fall was mainly due to the absence of contribution from three properties – Mercure Brisbane and Ibis Brisbane, which were divested in January 2018; and Dhevanafushi Maldives Luxury Resort, which has been closed since June 1, 2018 for renovations and will be rebranded as a "Raffles" resort.
There was also lower NPI contribution from the Reit's (real estate investment trust) Singapore, UK and New Zealand portfolios, with the Singapore portfolio performance dented by Orchard Hotel's asset enhancement exercise.
Orchard Hotel's lobby and food and beverage outlets (Orchard Café and Intermezzo Bar) are under renovation and are expected to be done by end 2018. Some 260 guest rooms will be renovated progressively from mid-November 2018 to sometime in the second quarter of 2019. All the meeting facilities and the grand ballroom will also undergo a "significant upgrading", CDLHT said.
The lower NPI was partially offset by increased NPI contribution from Pullman Hotel Munich and the Japan hotels, as well as retail mall Claymore Connect in Singapore.
RevPAR (revenue per available room) of CDLHT's Singapore hotels - excluding Orchard Hotel - for the third quarter rose by 1.3 per cent year on year due to support from a stronger Chinese outbound leisure travel season and events such as Singapore International Water Week (Biennial), 51st Asean Ministerial Meeting and the F1 Singapore Grand Prix.
Chief executive of CDLHT's manager Vincent Yeo noted the Reit was undergoing a "transitionary period" as it made refurbishments to its properties and was looking to recycle capital from their divestments.
"Looking ahead, our core portfolio in Singapore is poised to benefit from the recovery in the hotel sector. We will continue to focus on executing asset enhancement opportunities to maximise the long-term potential of our hotels. For instance, Orchard Hotel, which is the largest hotel in our Singapore portfolio, will see a significantly improved product offering when the asset enhancement works are completed," Mr Yeo said.
CDLHT said it will continue to pursue "suitable acquisitions" to diversify and augment its income streams.
CDLHT's counter was trading flat at S$1.46 as at 2.46pm on Wednesday.