SINGAPORE (July 27): CDL Hospitality Trusts (CDLHT) has declared a distribution per stapled security (DPS) of 2.14 cents for 2Q18, 2.9% higher compared to the DPS of 2.08 cents in 2Q17.
This brings DPS for 1H18 to 4.31 cents, 5.1% higher than 4.10 cents in 1H17.
During 2Q18, revenue saw a slight 0.3% decrease to $47.7 million from $47.8 million last year while net property income stood at $33.6 million, 3.7% lower.
This was mainly due to the absence of income from Mercure Brisbane and Ibis Brisbane due to their divestment in January 2018, the closure of Dhevanafushi Maldives Luxury Resort for renovations in June 2018, and lower contribution from Grand Millennium Auckland due to the absence of one-off sporting events in New Zealand along with a weaker NZD and higher property tax.
The decrease was partially offset by new contribution from Pullman Hotel Munich in Germany, which performed strongly, and an additional 34 days of contribution from The Lowry Hotel in Manchester, UK boosted CDLHT’s portfolio NPI.
Total distribution to stapled security holders increased by 3.6% to $25.8 million from $24.9 million in the previous year.
As at June 30, the trust’s cash and cash equivalents stood at $133.6 million.
Vincent Yeo, CEO of the manager of CDLHT, says, “While the Singapore hospitality market is absorbing the influx of new hotel supply from last year, we look forward to a gradual recovery in the hotel sector as growth drivers continue to look encouraging. We are focused on creating long-term value for Stapled Securityholders and will continue to proactively seek opportunities to enhance our existing assets and strengthen their competitive positioning in the market.”
As at 11.35am, units in CDLHT are trading 3 cents lower at $1.65.
