CDL Hospitality Trusts cuts H2 DPS by 11% to S$0.0306
CDL Hospitality Trusts' (CDLHT) J85 distribution per stapled security (DPS) fell by 11 per cent to 3.06 Singapore cents for its second half ended Dec 31, 2021, from 3.44 cents a year ago.
Gross revenue, however, was up 39.7 per cent to S$91.5 million for the half-year period, from S$65.5 million a year ago.
CDLHT had observed a recovery in lodging demand amid a relaxation in travel restrictions and broader distribution of vaccines, its managers said in a bourse filing on Friday (Jan 28).
Net property income (NPI) grew 24.1 per cent on year to S$49.1 million for the half year, from S$39.6 million.
NPI growth was driven by more contributions from CDLHT's UK, Maldives, Germany, New Zealand and Japan properties. However, this was offset by lower NPI from its remaining properties, of which a S$2.2 million decline was due to a divestment of Novotel Singapore Clarke Quay and Novotel Brisbane.
The total distribution to stapled securityholders, after a retention for working capital, fell 10.6 per cent on year to S$37.6 million, from S$42.1 million.
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The distribution will be paid out on Mar 1, 2022, after books closure on Feb 10.
Meanwhile, for the full year ended Dec 31, 2021, DPS was lower at 4.27 cents, versus 4.95 cents a year ago, and the total distribution after a retention for work capital fell 13 per cent to S$52.6 million.
Gross revenue for FY2021 was 34.2 per cent higher at S$157.7 million, while NPI rose 24.2 per cent to S$86.1 million for the full year.
Total distribution in FY2021 declined due to a fall in capital distribution of 23 per cent to S$15.4 million, and rent restructuring of its Germany and Italy hotels. The group also noted that the growth in NPI was due to a low base effect, as some hotels had recorded losses in FY2020. (see amendment note)
Vincent Yeo, chief executive of CDLHT's managers, said, "While the ongoing pandemic continues to hamper the hospitality industry, most of our portfolio reflected improving underlying performances. However, the absence of contribution from 2 divested assets diluted our overall result."
The group said recovery was varied across regions, with positive momentum in room demand and rate growth observed in some portfolio markets.
It, however, warned that the spread of the Omicron variant may curtail demand in the first quarter of 2022.
As at Dec 31, CDLHT had a gearing of 39.1 per cent and debt headroom of S$613.8 million, at a 50 per cent gearing limit.
Stapled securities of CDLHT closed at S$1.14 on Thursday, down S$0.02 or 1.7 per cent.
CDL Hospitality Trusts is a stapled group comprising CDL Hospitality Real Estate Investment Trust and CDL Hospitality Business Trust.
READ MORE:
- CDLHT posts 34.8% rise in Q3 net property income to S$20.5m
- CDL Hospitality Trusts enters UK's build-to-rent sector with S$136m investment
Amendment note: The article has been edited to correctly reflect the capital distribution for FY2021.
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