CDL Hospitality Trusts’ net property income rises 35% in Q1
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The managers of CDL Hospitality Trusts expect to see continued growth in Singapore, particularly as Chinese tourists return to international travel.
PHOTO: CDL HOSPITALITY TRUSTS
SINGAPORE – CDL Hospitality Trusts (CDLHT) on Friday posted a 35 per cent increase in its net property income (NPI) for the first quarter ended March 31 to $32.7 million, up from $24.2 million a year earlier.
Gross revenue for the stapled group, comprising CDL Hospitality Real Estate Investment Trust and CDL Hospitality Business Trust, also grew, rising 31.5 per cent to $60.8 million.
These come on the back of largely higher revenue per available room across most of its properties, except those in New Zealand and the Maldives. Those markets saw a dip in NPI.
In Germany, NPI also declined due to a weakening euro against the Singapore dollar, coupled with a “seasonally weak first quarter”, CDLHT’s managers said.
The group’s NPI from its core market, Singapore, experienced the biggest increase of 82.5 per cent – or an absolute gain of $8.8 million to $19.6 million in the first quarter of 2023.
The managers said that they expect to see continued growth in the hospitality sector in Singapore, particularly as Chinese tourists resume international travel.
“The managers are confident of the medium- to long-term prospects of the Singapore market and will continue to assess opportunities to invest through asset enhancements to strengthen the competitiveness of its hotels in CDLHT’s core market.”
CDLHT’s gearing stood at 37.5 per cent in the first quarter of this year, up slightly from 36.6 per cent in the last quarter.
While the trust expects business performance to improve on Chinese travellers’ return, it added that higher interest rates will continue to impact borrowing costs.
“While inflationary cost pressures, higher energy prices and funding costs may affect CDLHT’s performance in the near to medium term, the positive trends in the hospitality industry are expected to offset some of these costs, particularly in strong markets or periods of high demand,” said the managers.
Stapled securities in CDLHT closed 3.28 per cent up at $1.26 on Friday.
THE BUSINESS TIMES
