OUE Hospitality Trust's Crowne Plaza Changi Airport. (Photo: REITsWeek)OUE Hospitality Trust's Crowne Plaza Changi Airport. (Photo: REITsWeek)

Singapore-listed OUE Hospitality Trust (SGX:SK7) announced on12 November that it has achieved revenue and net property income (NPI) of SGD32.7 million and SGD28.8 million respectively for it 3Q 2015.

The figures represent an increase of 14.6% and 13.5% respectively as compared to the corresponding period in 2014. “The higher revenue and NPI are attributable to Mandarin Orchard Singapore’s better operating performance and the contribution from Crowne Plaza Changi Airport which was acquired on 30 January 2015”, said the trust in its statement on the results.

Subsequently OUE Hospitality Trust’s distributable income and distribution per stapled security (DPS) were SGD23.0 million and 1.72 Singapore cents respectively - representing an increase of 5.8% and 4.9% over the SGD21.7 million and 1.64 cents Singapore cents paid in 2014 respectively.

“Mandarin Orchard Singapore continued to leverage on its prime Orchard Road location to attract leisure and corporate travellers, achieving a higher RevPAR for 3Q 2015 despite continued challenges faced by the hospitality industry”, said Chong Kee Hiong, CEO of the REIT’s manager.

“Mandarin Gallery is 98% committed as at 30 September 2015. It recorded an effective rental per square foot per month of approximately SGD25.0 in 3Q 2015 compared to SGD23.9 in 3Q 2014”, he added.

OUE Hospitality Trust has however cautioned that the Singapore hospitality continues to face headwinds in the short term. “The hospitality sector will remain competitive with the expected supply of new hotel rooms”, it said.

Units of OUE Hospitality Trust closed the trading day 1.84% lower on the Singapore Exchange to end at SGD0.80.

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.