CDL Hospitality Trust's Copthorne Waterfront Hotel, Singapore. (Photo: REITsWeek)CDL Hospitality Trust's Copthorne Waterfront Hotel, Singapore. (Photo: REITsWeek)

Singapore-listed hospitality stapled security CDL Hospitality Trust (CDLHT) (SGX:J85) has announced a distribution per stapled security (DPS) of 3.13 Singapore cents for its 4Q2014, an increase of 7.2% from the 2.92 Singapore cents distributed in the corresponding period last year.

CDLHT registered gross revenue of SGD45.1 million for the quarter, 14.4% higher than the corresponding period last year. This was mainly due to the recognition of full hotel revenue of Jumeirah Dhevanafushi which was acquired in December 2013 and contributed SGD5.4 million for the quarter.

A further SGD1.3 million rental boost was also received from Angsana Velavaru in the Maldives.

However overall for the financial year, excluding contribution from the Maldives properties, gross revenue from the rest of CDLHT's properties decreased 3.9% yoy to SGD133.4 million in FY 2014.

The trust has attributed this to reduced contribution from Singapore Hotels of SGD1.2 million, loss of rental income from Claymore Link Mall of SGD3.1 million and lower rent contribution from Australia of SGD1.7 million.

Average daily rates for Singapore hotels dipped 4.7% to SGD205 mainly due to increased competition from the new hotel room supply into the market and the uncertain global economic environment As a result, RevPAR for the Singapore Hotels decreased marginally by 1.1% yoy to SGD185 in 4Q 2014.

CDLHT explained that Australia's rental was also impacted due to weakened Australian Dollar and the receipt of a lower full year variable income of SGD1.1 million (AUD1.0 million) as compared to the SGD2.0 million (AUD1.63 million) received the previous year.

The trust has indicated that it remains optimistic for the quarters ahead once income from recently acquired properties come online. “Our recent acquisition of the two Japan hotels in December 2014 is expected to benefit our portfolio income stream further”, said Vincent Yeo, CEO of CDLHT’s manager.

Units of CDLHT are currenty listed on the Singapore Exchange at SGD1.79.

CDLHT has cautioned that room rates for Singapore is expected to remain competitive through 2015.
CDLHT has cautioned that room rates for Singapore is expected to remain competitive through 2015.

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.