SINGAPORE - Frasers Hospitality Trust(FHT) reported a 3.6 per cent fall in distribution per stapled security (DPS) for the second quarter ended March 31 to 1.33 Singapore cents from a 1.38 cents in the year-ago period due to the enlarged number of stapled securities.
The number of stapled securities increased 14.5 per cent to 1.38 billion from 1.2 billion a year ago.
Gross revenue rose 12.5 per cent to S$27 million, net property income was 17.3 per cent higher at S$22.2 million and distribution income increased 10.5 per cent to S$18.4 million, due mainly to the addition of Sofitel Sydney Wentworth to FHT's portfolio since July 2015. This was partially offset by the weaker performance of its London properties and InterContinental Singapore, which was affected by renovation works that were completed in end-February 2016.
Said Ms Eu Chin Fen, CEO of the trust's manager: "While our Sydney and Kobe properties did well in the second quarter, our London properties have experienced weakness since the November Paris attacks. At the InterContinental Singapore, performance was affected by renovation works. Although they were fully completed in end-February, our strategy to reposition the hotel is likely to take longer than expected under current market conditions.
"Moving forward, we continue to work closely with our hotel operators to drive performance and to undertake asset enhancement initiatives to unlock the value of our properties. We remain focused on pursuing yield-accretive, quality assets that are well located in key cities with sound economic fundamentals, so as to provide stability and growth to our stapled securityholders."