CDL Hospitality Trusts (CDLHT) (SGX: J85), the Singapore-listed stapled group comprising CDL Hospitality REIT and CDL Hospitality Business Trust, has registered gross revenue of S$35.9 million in 3Q 2013, a 0.8 per cent decrease compared to the previous corresponding quarter.
|CDL Hospitality Trusts is a stapled group consisting of CDL Hospitality REIT and CDL Hospitality Business Trust|
CDLHT has attributed the weaker numbers mainly to lower gross revenue from its Singapore hotels. Fixed rent contribution from its Australia hotels was also down year-on-year in the quarter, thanks to the weakened Australian dollar.
These reductions were however, mitigated by a S$1.9 million revenue boost from the Angsana Velavaru resort in the Maldives based on its prorated minimum rent contribution. The resort continued to perform well since its acquisition in January 2013, registering a year-on-year RevPAR growth of 13.9 per cent for the three months ended 30 September 2013.
Consequently, overall net property income recorded for 3Q 2013 was 1.7 per cent lower year-on-year at S$33.0 million. Income available for distribution, before deducting income retained for working capital, for 3Q 2013 was 2.2 per cent lower year-on-year at S$28.6 million. Accordingly, income available for distribution per unit after deducting income retained for working capital for 3Q 2013 was 2.64 cents, as compared to 2.72 cents recorded in 3Q 2012. This represents a drop of about 3 per cent from the same period last year.
Mr Vincent Yeo, CEO of M&C REIT Management Limited, the manager of H-REIT, commented, “The influx of new hotel rooms and an overall weaker corporate demand environment impacted our performance for the quarter and the first nine months of 2013. Despite this, occupancies at our Singapore Hotels have remained high at 88 per cent”.
REITSWEEK will be covering this story and further analysing the outlook for Singapore hospitality REITs in the next issue. Units of CDLHT are currently trading slightly higher from the previous day’s close on the SGX at S$1.68.