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OUE Hospitality Trust's Q2FY2018 DPS dips 3.3%

OUE Hospitality Trust's (OUE H-Trust) distribution per stapled security (DPS) fell 3.3 per cent year on year to 1.17 Singapore cents for the second quarter ended June 30.

Gross revenue was 1.4 per cent lower at S$30.7 million as both its hospitality and retail segments posted lower revenue.

OUE H-Trust is a stapled group comprising OUE Hospitality Real Estate Investment Trust (OUE H-REIT) and OUE Hospitality Business Trust (OUE H-BT). As at June 30, OUE H-REIT’s asset portfolio comprised the 1,077-room Mandarin Orchard Singapore; the adjoining Mandarin Gallery mall; and the 563-room Crowne Plaza Changi Airport (CPCA).

For the quarter under review, net property income (NPI) eased marginally by 0.5 per cent to S$26.5 million, in line with lower gross revenue though this was partly offset by lower property expenses.

Distributable income slid 2.5 per cent to S$21.3 million as the Reit no longer receives income support for CPCA. 

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OUE H-Trust’s hotel portfolio revenue per available room (RevPAR) rose 2.6 per cent to S$195 in Q2 2018, with CPCA's RevPAR jumping 10.5 per cent to S$168 in Q2 2018. The trust said that it received minimum rent for CPCA as it continued with the ramping up of its operations. Mandarin Orchard Singapore recorded marginally lower RevPAR vis-a-vis Q2 2017 due to softer demand from the wholesale segment.

Meanwhile, the average occupancy of Mandarin Gallery edged up from 96 per cent in Q1 2018 to 97.4 per cent in Q2 2018 and was also higher than the 93.9 per cent clocked in Q2 2017. "However, revenue and NPI from the retail segment were slightly lower due to a lower effective rent of S$22.3 psf/mth in Q2 2018 compared to S$23.8 psf/mth in Q2 2017 as a result of negative rental reversion in the preceding quarters," said Chen Yi-Chung Isaac, acting chief executive officer of the Reit manager.

For the six-month period, gross revenue inched up 0.3 per cent to S$63.42 million while NPI was 1.3 per cent higher at S$54.78 million. DPS was lower at 2.43 Singapore cents, versus 2.51 Singapore cents previously.

The DPS is payable on Aug 30. 

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