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Hospitality S-Reits set to continue ‘stellar’ run but at slower pace

Navene Elangovan

Published Fri, Mar 15, 2024 · 05:00 AM
    • CapitaLand Ascott Trust, which counts Ascott Orchard Singapore in its portfolio, is among the hospitality trusts that have posted positive distribution growth for FY2023.
    • CapitaLand Ascott Trust, which counts Ascott Orchard Singapore in its portfolio, is among the hospitality trusts that have posted positive distribution growth for FY2023. PHOTO: BT FILE

    HOSPITALITY focused Singapore-listed real estate investment trusts (S-Reits) have had a good run in the last year, outperforming S-Reits from other sub-sectors such as retail and healthcare.

    The five hospitality trusts listed on the Singapore Exchange (SGX) recorded, on average, 21 per cent year-on-year growth in their distribution per unit (DPU) for FY2023.

    For example, ARA US Hospitality Trust declared a distribution per stapled security (DPS) of 3.43 US cents for FY2023, up 12.3 per cent from FY2022. Similarly, CapitaLand Ascott Trust increased its FY2023 DPS by 16 per cent year-on-year to 6.57 Singapore cents.

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