A-HTrust posts 9.9% fall in Q2 DPS to 1.27 cents
Singapore
ASCENDAS Hospitality Trust on Thursday posted a 9.9 per cent dip in distribution per share (DPS) for its fiscal second quarter, due to a dip in distributable income that came from an unwinding of forex derivatives.
The trust said that DPS for the three months ended Sept 30, 2014, stood at 1.27 Singapore cents, down from 1.41 Singapore cents a year ago.
Distributable income fell 3.2 per cent to S$14.1 million, dragged by a S$2.1 million cost for the partial unwinding of the cross-currency swaps for the Australia portfolio. It also had an enlarged security base, with 73.53 million new stapled securities issued through a private placement in April.
Funds from the placement were partially used to finance the acquisition of Osaka Namba Washington Hotel Plaza, which boosted gross revenue for the quarter. Gross revenue rose 6.5 per cent to S$56.5 million.
The trust posted stronger average revenue per available room (RevPAR) for both its Australia and China portfolios.
In Australia, the RevPAR of the portfolio for the quarter rose 3.2 per cent from a year ago to A$136 (S$151), with improvement coming from the two hotels within Sydney's city centre that benefited from an increase in events.
Meanwhile, its two hotels in Beijing also boosted its RevPAR to 357 yuan (S$75), up 2 per cent over the year, through online promotions.
"This helped to offset weaker food and beverage demand in a quarter marked by soft corporate demand and school vacation," the trust said in a press statement.
For the six months, DPS stood at 2.51 Singapore cents, down 7 per cent from 2.70 Singapore cents.
"In China, slower economic growth and the government's austerity drive will continue to weigh on the hospitality market. Operating conditions in Beijing are expected to be competitive in the near term given the upcoming increase in hotel room supply."
But it said that the tourism outlook is positive for key cities such as Sydney, with the hotel market underpinned by strong corporate demand and rising visitor arrivals.
Shares of Ascendas Hospitality Trust closed at S$0.715, down one Singapore cent, on Thursday.
