OUE Hospitality Trust marginally beats forecasts for first distribution

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Singapore-listed OUE Hospitality Trust (OUE H-Trust)(SGX:SK7), a stapled group comprising OUE Hospitality REIT and OUE Hospitality Business Trust, reported distributable income (DI) of SGD38.2 million and distribution per stapled security (DPS) of 2.90 cents for the financial period from 25 July to 31 December 2013.

Both DI and DPS are 2.4% and 2.1% respectively higher than the forecast for the same period.

Despite the heightened competition due to increased hotel room supply,
Mandarin Orchard hotel achieved a RevPAR growth of 4.5%

This translates into an annualised yield of 7.52% based on the listing price of S$0.88.

OUE H-Trust has attributed the better-than-expected numbers to the performance of its properties. "The strong underlying performance of Mandarin Orchard Singapore hotel and the stable rentals from Mandarin Gallery mall have enabled us to deliver a performance that exceeded the forecast", said Christopher Williams, Chairman of OUE Hospitality REIT Management Pte Ltd.

"Going forward, we will continue with our asset enhancement initiatives to achieve organic growth for Mandarin Orchard hotel and actively manage leasing opportunities at Mandarin Gallery to enhance its position as a high-end destination mall. We will also seek yield accretive acquisitions from our Sponsor and third parties to grow OUE H-Trust", he added.

Units of OUE H-Trust ended the day half a percentage point lower from its previous session at SGD0.88 on the Singapore Exchange.

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