Eagle Hospitality Trust discovers unauthorised loan amid USD38.9 million loss for 2Q

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Data from Eagle Hospitality Trust’s latest results have been updated into the Singapore REITs table.

Eagle Hospitality Trust (EHT) has announced the discovery of an unauthorised loan on the same day it reported financial results for the quarter ended 30 June 2020.

The trust posted a loss of USD38.9 million for the period, largely stemming from impairment loss on trade receivables amid uncertainty from master lessees' ability to make rental payments.

Given the loss, there is no income available for distribution for unitholders.

According to the managers of EHT an unauthorised application was made under the US Paycheck Protection Program (PPP) on behalf of the Queen Mary's master lessor.

The PPP application was signed by Taylor Woods, a co-founder of the trust sponsor, Urban Commons.

However, as at the date of the PPP application 0n 18 May 2020, he had already been removed and was no longer an officer of Queen Mary’s master lessor, said the trust.

A letter of demand has been sent to Woods seeking more information on the loan, said EHT.

As at 30 June 2020, EHT’s weighted average all-in cost of borrowing for 30 June 2020, including debt-related transaction costs, was 5.8% with aggregate leverage at 37.6%.

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