CDL Hospitality Trusts sees small dip in Q3 distributable income

CDL Hospitality Trusts announced on Monday that its income available for distribution per stapled security, after deducting income retained for working capital, dipped to 2.61 cents for the third-quarter of 2014 from 2.64 cents in the same period last year.

Gross revenue was $40.1 million for the July to September quarter, up 11.9 per cent from $35.9 million in the year-ago period, due to the recognition of the full revenue of Jumeirah Dhevanafushi hotel, acquired last Dec 31, which contributed $4.7 million to this third quarter's income.

The company said its net property income grew by $800,000, attributable mainly to two hotels - $1.1 million from Jumeirah Dhevanafushi and S500,000 from Singapore Hotel.

But the growth was offset by a decrease of $800,000 from Claymore Link, which was mostly closed for asset enhancement works.

For the first nine months of the year, gross revenue went up by $12.4 million, driven by the addition of Jumeirah Dhevanafushi and a gross rent increase for Angsana Velavaru.

Net property income rose by $1.0 million, driven mainly by increases from Jumeirah Dhevanafushi and Angsana Velavaru, but this was offset by lower contributions from Singapore and Australia properties.

Income available for distribution per stapled security for the first nine months this year is 7.86 cents, down 2.4 per cent from 8.05 cents for the same period last year.

The compay said it enjoyed a record occupancy of 92.0 per cent in the third-quarter of 2014, due mainly to the increase in business volume.

Going forward, the company said the local operating environment continues to be competitive with new room supply expected to grow at a compound annual growth rate of 4.5 per cent from 2013 to 2017. Another 447 rooms are scheduled for opening by the end of 2014.

Its Australia hotels continued to be affected by a slower economy and lower activity levels in the mining sector, but this was mitigated by the lease structure, which provides the trusts with a high proportion of fixed rent.

The comany added that with its ample debt headroom, it will continue to focus on sourcing for acquisition opportunities.