Distribution for Q1 falls at Ascendas Hospitality Trust

AN enlarged post-placement stapled security base and the continued unwinding of cross-currency swaps for its Australia portfolio chipped away at Ascendas Hospitality Trust's distribution for the first quarter.

The Reit yesterday posted a distribution per stapled security (DPS) of 1.24 Singapore cents for the period ended June 30, 3.9 per cent down from 1.29 Singapore cents a year ago.

This was due partly to a S$1.8 million cost incurred for the partial unwinding of its A$/S$ cross-currency swaps - something it has been progressively doing since Q3 last year to buffer the Reit against an expected further weakening of the Australian dollar. It plans to keep doing so until the swaps expire in June next year.