OUE Hospitality Trust's Mandarin Gallery (Photo: REITsWeek)OUE Hospitality Trust's Mandarin Gallery (Photo: REITsWeek)

Singapore-listed stapled security OUE Hospitality Trust (OUE H-Trust) (SGX:SK7) has posted a distribution per unit (DPS/DPU) of 1.64 Singapore cents for its 2Q 2014.

The figure is 2.5% higher than the 1.6 Singapore cents forecast for the financial period when OUE H-Trust published its prospectus in July 2013 prior to its listing on the Singapore Exchange.

Net property income (NPI) for the quarter was recorded at SGD25.2 million, beating original estimates by 1.2% while distributable income came in at SGD21.6 million, exceeding expectations by 2.3%.

However gross revenue for the quarter was recorded marginally lower by 0.1% at SGD28.3 million.

Managers for the trust has partly attributed its distribution figures to lower operating expenses, bolstering NPI and subsequently payment to Unitholders.

To posture itself for growth in the coming quarters, the manager for the trust has also indicated that  renovation works on 430 guest rooms at the Mandarin Orchard Singapore has been accelerated to position the property for a busier second half of the year.

Units of OUE H-Trust closed the trading day at SGD0.90 on the Singapore Exchange.

OUE Hospitality Trust Mandarin Gallery
OUE Hospitality Trust has accelerated renovation works on 430 guest rooms to capture higher demand for the second half of 2014.

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.