OUE Commercial REIT's Crowne Plaza Changi Airport. (Photo: REITsWeek)OUE Commercial REIT's Crowne Plaza Changi Airport. (Photo: REITsWeek)

OUE Hospitality Trust (OUEHT) has reported distribution per stapled security (DPS) of 1.06 Singapore cents for its 2Q 2019, a decrease of 9.4% year-on-year.

The hotel landlord has reported gross revenue and net property income (NPI) of SGD29.4 million and SGD25.3 million respectively for the quarter.

Correspondingly, its distributable income for the period was SGD19.4 million.

“During the quarter, the hospitality sector continued to experience downward pressure and increased competition”, said Chen Yi-Chung Isaac, acting CEO of OUEHT's manager.

Chen has attributed the lower DPS in 2Q2019 mainly due to lower income from the hospitality segment resulting from lower average room rates, weaker demand, lower food and beverage sales at Mandarin Orchard Singapore.

The trust also saw lower revenue from the retail segment as a result of negative rental reversions recorded in the previous quarters, and higher interest expense.

Its gearing for the quarter was at 38.5% with average cost of debt of 2.6%.

OUEHT was last done on the Singapore Exchange at SGD0.72.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.