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OUE Hospitality Trust DPS falls to 1.26 cents

OUE Hospitality Trust's distribution per stapled security (DPS) for the first quarter slipped to 1.26 Singapore cents, from 1.30 Singapore cents in the previous year.

That came as income available for distribution in the quarter slid 2.3 per cent from the previous year to S$22.9 million.

For the three months ended March 31, the trust saw gross revenue grow 1.9 per cent to S$32.68 million from the year-ago period, thanks to higher contribution from the hospitality segment which more than offset a weaker performance in the retail segment.

The trust's asset portfolio includes Mandarin Orchard Singapore, Mandarin Gallery and Crowne Plaza Changi Airport.

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Its net property income grew 3.1 per cent from the previous year to S$28.3 million.

Its manager said in a press release that the return of large biennial events, plus Singapore being the Asean chairman this year, are expected to raise demand for hotel accommodation. New room supply is also expected to slow down this year.

"However, as the market has to absorb the additional rooms that came on stream in the second half of 2017, the market environment remains competitive."

Meanwhile, challenges in Singapore's retail scene remain, with tenants more cautious and taking a longer time to renew or commit to leases, it added.

The counter closed 2.4 per cent, or 2 cents, lower at 82 Singapore cents on Wednesday, before the results announcement.