Ascendas Hospitality Trust property in Singapore Park Hotel Clarke QuayAscendas Hospitality Trust's property in Singapore, Park Hotel Clarke Quay

Ascendas Hospitality Trust (A-HTRUST) (SGX:Q1P) posted a DPS of 1.21 Singapore cents for its 4Q13/14, bringing its total DPS for its FY2013/2014 to 5.2 Singapore cents.

According to A-HTRUST, the year-on-year DPS for its fourth quarter slipped 14.2% as compared to the 1.41 Singapore cents from the corresponding period a year ago due to foreign exchange movements in the Australian dollar.

Net property income (NPI) for its 4Q13/14 rose 19.3% year-on-year to SGD22 million, attributed to improved performance of its Australian portfolio and new income contribution from Park Hotel Clarke Quay which was acquired in June 2013.

However income available for distribution in 4Q FY2013/14 declined 7.5% year-on-year to SGD12.5 million largely due to the SGD2 million cost incurred for partially unwinding the cross-currency swaps for the Australian portfolio.

A-HTRUST maintained occupancy levels of 83.8% and RevPar of AUD146 for its Australian properties and 72.5% and RevPar of RMB285 for its Chinese properties. Its hotel revenues in China were particularly affected by the country’s slowing growth and the government’s austerity measures.

Looking forward, A-HTRUST expects Australia’s accommodation market to benefit from the rebounding domestic corporate sentiment and large-scale events in 2014 such as the Rotary Convention in June and the G20 Summit in November. However moderate growth is expected to continue in China due to the government’s austerity drive and intensified competition from a higher supply of hotel rooms.

Units of A-HTRUST closed the trading day flat on the Singapore Exchange at SGD0.725.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.