CDLHT posts 4.8% fall in Q3 DPS to 2.18 cts

Singapore

MAINBOARD-LISTED CDL Hospitality Trusts (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 contributions 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 Singapore, UK and New Zealand portfolios, with the Singapore portfolio performance dented by Orchard Hotel's asset enhancement exercise.

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 said the Reit was undergoing a "transitionary period" as it made refurbishments to its properties and was looking to recycle capital from their divestments.

CDLHT units ended 0.69 per cent lower at S$1.45 on Wednesday.