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OUE Hospitality Trust Q3 DPS down 5.9%

OUE Hospitality Trust's (OUE H-Trust) distribution per stapled security (DPS) for the third quarter ended Sept 30 fell to 1.28 Singapore cents, down 5.9 per cent from 1.36 cents in 3QFY17.

This is because OUE H-Trust no longer receives income support for Crowne Plaza Changi Airport (CPCA) from OUE Airport Hotel, having fully drawn down the entire income support of S$7.5 million, it said.

Gross revenue fell 2.2 per cent year-on-year to S$33.24 million on the back of lower contributions from both the hospitality and retail segments. Its asset portfolio comprises the 1,077-room Mandarin Orchard Singapore, the adjoining Mandarin Gallery, and the 563-room CPCA hotel.

Meanwhile, net property income for the quarter dipped 1.4 per cent lower to S$29.06 million, in line with lower gross revenue, while income available for distribution fell 5.4 per cent to S$23.34 million.

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OUE H-Trust highlighted that the hospitality outlook remains positive, with the continued growth in tourist arrivals and limited supply of new hotel rooms.

It added: "Retail pipeline supply in Singapore remains limited and demand for prime retail space continues to remain healthy, supported by tight vacancies. However, as challenges remain in the retail environment, we continue to work closely with tenants in curating a differentiated mall offering while optimising the asset's performance."

The DPU is payable on Dec 6.

The counter closed at 68.5 Singapore cents on Wednesday, up half a cent.