CDL Hospitality Trusts sees 3.4% rise in Q3 DPS on higher property income

An executive suite at Cambridge City Hotel in the UK.
An executive suite at Cambridge City Hotel in the UK. PHOTO: CDL HOSPITALITY TRUSTS

SINGAPORE - CDL Hospitality Trusts reported on Friday (Oct 28) a 3.4 per cent rise to 2.44 Singapore cents in distribution per stapled security (DPS) for the three months to Sept 30, from 2.36 cents for the year-ago quarter.

The profit increase came on the back of a 5.3 per cent rise in net property income (NPI) to S$34.8 million on contribution from its hotels in UK and New Zealand.

Contributions from Australia and Japan Hotels also grew due to positive earnings translation. However, the growth in NPI was partially offset by lower contributions from Singapore and Maldives as a result of the soft trading environment.

Said Mr Vincent Yeo, chief executive officer of the trust's managers: "The trading environment for Singapore hotels is likely to remain competitive till next year given the subdued economic environment leading to softer corporate demand. Nevertheless, we are encouraged by the continued growth in visitor arrivals which have supported the healthy occupancy levels in the market.

"Overall, our geographically diversified portfolio has provided the benefits of income diversification despite the soft trading conditions in our core Singapore market. Our performance in third quarter was lifted up by inorganic contribution from Hilton Cambridge City Centre as well as improved performance from Grand Millennium Auckland."