SINGAPORE - Distributable income fell for CDL Hospitality Trusts in the second quarter, on the back of higher financing costs and the weakened Australian and New Zealand dollars.
Distribution per stapled security (DPS) fell 10 per cent to 2.25 cents for the three months to June 30, 2015, from 2.5 cents for the year-ago quarter.
The group, which comprises CDL Hospitality Real Estate Investment Trust and CDL Hospitality Business Trust, posted a 3 per cent uptick in gross revenue for the quarter to $39 million from $37.9 million a year ago. Meanwhile, net property income was up just 0.9 per cent, from $31.3 million to $31.6 million.
Contribution from newly acquired Japan hotels, and a revenue increase at its Maldives resorts, partly buoyed by a stronger US dollar, was partially offset by reduced contribution from its hotels in Singapore, Australia and New Zealand.
Total distributable income dropped by 9.2 per cent, from $24.4 million to $22.1 million.
Although acquisition of hotels in Japan last December helped boost the group's revenue, income from the properties will not contribute to distributable income until the last quarter of this year.
For the six months, gross revenue fell by 0.5 per cent to $81.2 million, and net property income was $66.1 million, down by 2.8 per cent. Total distributable income dropped by 10.1 per cent to $46.1 million.