OUE Hospitality Trust reports 31.5% rise in Q2 payout

OUEHT units rose half a cent to 76 cents on the stock market. The results were announced after market close.
OUEHT units rose half a cent to 76 cents on the stock market. The results were announced after market close.PHOTO: ST FILE

SINGAPORE - OUE Hospitality Trust (OUEHT) said its second quarter payout rose 31.5 per cent to 1.21 cents.

This was on the back of a 31.8 per cent rise in distributable income to S$31.2 million for the three months to June 30.

Revenue and net property income (NPI) climbed by 16 per cent to S $31.2 million and 15 per cent to S$26.6 million, respectively, as a result of higher contributions fromboth the hospitality and retail segments.

"For the hospitality segment, Mandarin Orchard Singapore has performed well in both room sales and the food and beverage divisions, whilst the enlarged Crowne Plaza Changi Airport has contributed to an increase in master lease income to OUEHT," said Mr Christopher Williams, chairman of the Reit manager.

Get The Straits Times
newsletters in your inbox

In retail, Mandarin Gallery's average occupancy and rental revenue have improved and the mall enjoys a high weighted average lease expiry by gross rent of 3.9 years, he noted.

Mr Chong Kee Hiong, chief executive of the Reit manager, said Mandarin Orchard posted a 5 per cent rise in revenue per available room in the second quarter as a result of higher occupancy and average room rates achieved.

In addition, better performance by the hotel's food and beverage outlets and banquet business also contributed to the $1 million higher master lease income from Mandarin Orchard, he added.

In the previous corresponding quarter, Mandarin Gallery recorded a lower occupancy of 79.1 per cent due to landlord works undertaken to amalgamate units in order to hand over to new tenants.

In comparison, average occupancy of Mandarin Gallery increased to 93.9 per cent in the second quarter of this year.

Consequently, retail revenue was 16.8 per cent higher while net property income for the retail segment was 20.3 per cent higher at S$6.5 million.

The second quarter distribution will be made on Sept 4.

OUEHT units rose half a cent to 76 cents on the stock market. The results were announced after market close.