Singapore-listed hotel stapled security Ascendas Hospitality Trust (SGX:Q1P) has missed its revenue forecast made in its IPO prospectus for gross revenue, net property income and distributable income for its 1Q13/14. Gross revenue for the quarter came in at S$48 million, 10.8 percent short of the S$53.8 million projected.
|Ascendas Hospitality Trust has partly attributed the miss in revenue and property income to the current economic slowdown in Australia.|
Distribution income meanwhile came in at S$10.93 million, a 12 percent miss from the S$12.42 million it projected for the quarter. Units of Ascendas Hospitality Trust are currently trading lower by about 3 percent at S$0.82 on the news.
Ascendas Hospitality Trust has blamed the numbers on a slowdown of business in Australia and China where a number of its properties are based. Unfavorable foreign exchange movements have also partly contributed to the variance. Due to these misses, current unit holders of Ascendas Hospitality Trust have also found their distributions significantly lower than what was projected during the IPO.
We will be covering more of this story in the upcoming Issue 6 of REITSWEEK.