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OUE Hospitality Trust's Q3 DPS up 10.6 per cent
OUE Hospitality Trust, which is a stapled group comprising OUE Hospitality Real Estate Investment Trust (OUE H-Reit) and OUE Hospitality Business Trust (OUE H-BT), reported a 10.6 per cent year-on-year rise in distribution per stapled security (DPS) to 1.36 Singapore cents for the third quarter ended Sept 30, 2017.
Gross revenue rose 5.4 per cent year-on-year to some S$34 million on the back of its hospitality segment. Hospitality revenue was S$1.7 million higher due to higher master lease income from its two hotels.
OUE H-Reit's asset portfolio comprises the 1,077-room Mandarin Orchard Singapore (MOS), the 563-room Crowne Plaza Changi Airport (CPCA), and the Mandarin Gallery retail mall.
Net property income edged up 3.8 per cent to S$29.46 million. Income available for distribution for the quarter under review increased 10.9 per cent to S$24.68 million.
Master lease income from MOS rose by S$1.2 million partly due to higher revenue per available room, while master lease income from the enlarged CPCA was S$400,000 higher due to more room inventory.
For the quarter, Mandarin Gallery's occupancy rate increased to 96.4 per cent, up from 89 per cent a year ago.
"Challenges in Singapore's retail scene remain, therefore tenants are more cautious and are taking a longer time to renew or commit to leases," said OUE H-T. "We are continuously exploring leasing opportunities with current and potential tenants, and remain committed to curating the right tenant mix to retain the mall's positioning as a destination mall."
The payment date for the DPS is Dec 1.