Data from ARA US Hospitality Trust’s latest results have been updated into the Singapore REITs table.
ARA US Hospitality Trust has reported a net property loss of USD2 million for its 1H 2020, and will not be declaring a distributable income for the period.
The trust reported positive gross revenue and gross operating profit of USD39.3 million and USD5.8 million respectively in 1H 2020.
However, after taking into account fixed costs, the net property loss was recorded.
These results were disclosed in the wake of a temporary closure of 30 properties in March 2020 as part of its cost mitigation measures.
“ARA H-Trust’s 1H 2020 financial results reflect the adverse impact on our hotel portfolio arising from lockdowns and travel restrictions amidst the COVID-19 pandemic” said Lee Jin Yong, CEO of the trust’s manager.
“However, we observed a gradual uptick in hotel occupancies in June 2020 arising from domestic leisure demand with the loosened restrictions in some states within the country”, he added.
“In the near term, the velocity of recovery will be difficult to determine. However, as hotel demand gradually recovers, we believe that trends will favor value-priced, transient guest-oriented, compact hotels located in drive-to markets such as our portfolio”, he added.
The trust has a total of approximately USD21.5 million in cash on-hand and its aggregate leverage was at 42.5%.
ARA US Hospitality Trust is currently trading at SGD0.36, down more than 5% from its previous close and a discount of more than 50% to its book value according to data compiled on the Singapore REITs table.