OUE Hospitality Trust Q1 distribution to unitholders down 8%

SINGAPORE - First-quarter distribution to unit holders of OUE Hospitality Trust fell 7.9 per cent to S$19.7 million, mainly due to lower retail revenue and higher finance expenses.

Distribution per stapled security was 1.10 cents for the three months to March 31, compared with 1.61 cents a year earlier.

Revenue rose 2.8 per cent to S$30.1 million, as higher revenue in the hospitality segment offset lower revenue from the retail segment.

Hospitality revenue was S$2.3 million higher than a year earlier due to higher master lease income from the Mandarin Orchard Singapore Hotel and Crowne Plaza Changi Airport Hotel.

But retail revenue was S$1.5 million lower mainly due to landlord fit out periods for incoming tenants and lower average occupancy rate.

The mall recorded an effective rent per square foot per month of S$24.4 for the first quarter of 2016, compared with S$24.6 a year earlier.

Net property income rose 2.2 per cent to S$26.3 million. Net asset value per stapled security was 89 cents as at March 31, down from 90 cents as at Dec 31.

The counter closed 0.5 cent lower at 67.5 cents on Friday evening (May 06).

The results were announced after markets closed.

wrennie@sph.com.sg