ARA H-Trust posts H1 DPS of US$0.01427; net property income up 131.2%
ARA US Hospitality Trust (ARA H-Trust) on Thursday (Aug 4) posted a distribution per stapled security (DPS) of US$0.01427 for the first half ended Jun 30, comprising capital distributions.
This comes as the stapled group posts a distributable income of US$8.1 million, unlike the previous year when there was no distributable income. ARA H-Trust resumed paying distributions in H2 2021.
The capital distributions represent a return of capital to stapled securityholders for Singapore income tax purposes, the managers said in a bourse filing. The DPS will be paid on Sep 26, after the record date on Aug 18.
Net property income jumped 131.2 per cent to US$21.1 million, from US$9.1 million in the corresponding period a year ago, as revenue rose 53.8 per cent.
Revenue for H1 2022 stood at US$81.3 million compared with the US$52.8 million recorded in H1 2021, as portfolio occupancy improved and revenue per available room (RevPAR) grew.
This comes as domestic and international travel in the US continued to recover strongly in the second quarter, ARA H-Trust’s managers said.
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The portfolio posted an average occupancy of 62.7 per cent and average daily rate of US$127, while RevPAR was up 54 per cent to US$80.
The surge in average daily rate allowed hotel revenue growth to outpace the increase in expenses, mitigating inflation concerns on margins, said Lee Jin Yong, chief executive of the managers.
ARA H-Trust also saw its operating cash flows improve in the last 6 months. Interest coverage ratio for the half-year period strengthened further to 2.8 times, raising the gearing limit to 50 per cent. It also had around US$19.8 million in cash and cash equivalents as at Jun 30, and about US$15 million of undrawn loan facilities.
ARA US Hospitality Trust is a stapled group comprising ARA US Hospitality Property Trust and ARA US Hospitality Management Trust.
ARA H-Trust was trading flat at US$0.475 as at 1.42 pm on Thursday.
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