CDL Hospitality Trusts sees Q3 DPU dip 9.7%

SINGAPORE - CDL Hospitality Trusts said its distribution per unit (DPU) fell 9.7 per cent to 2.36 cents for the third quarter ended Sept 30 from 2.61 cents for the year-ago period.

Net property income in the quarter declined 2.2 per cent to $33.1 million, after deducting operating expenses of Jumeirah Dhevanafushi and the Japan Hotels, and the portfolio's property tax and insurance expenses.

The group said gross revenue rose 2.4 per cent to $41.1 million over the year-ago quarter. This was due mainly to the contribution of $2.4 million from the acquisition of the Japan Hotels in December 2014 and incremental rental income of $1.2 million from the newly refurbished Claymore Connect mall.

However, this was offset by reduced rent contribution of $2.3 million from its Singapore hotels. Its Australian and New Zealand hotels also recorded lower contributions as the Australia and New Zealand currencies weakened against the Singapore dollar.

Overall, total income available for distribution, after deducting income retained for working capital, fell 9 per cent year-on-year to to $23.3 million. The group said this amount does not include contribution from its Japan hotels, which is only available for distribution in the fourth quarter.

Mr Vincent Yeo, chief executive officer of the group's managers, said: "The widespread economic slowdown has led to unfavourable trading conditions in some of our markets. However, our Japan Hotels acquisition in December last year has performed remarkably well. We have continued to diversify our earnings base by acquiring a hotel in Cambridge, UK, on Oct 1, 2015, and we look forward to its maiden contribution in the next quarter."