CDL Hospitality Trust Q4 DPS down 2.1%

SINGAPORE - Total distribution per stapled security (DPS) for CDL Hospitality Trust (CDLHT) fell 2.1 per cent to 2.77 cents for its fourth quarter compared to the same period a year ago.

Overall revenue and net property income (NPI) both fell 5.4 per cent due to the absence of contribution from three properties.

Mainboard-listed CDLHT cited the divestment of two Brisbane hotels in January 2018 and closure of a Maldives luxury resort in June 2018 for renovations.

It said its higher NPI contributions elsewhere and "incremental inorganic contribution" from its Italy hotel acquisition were offset by lower UK contribution and a weaker New Zealand dollar.

Interest expense for the quarter also rose by $2 million mainly due to additional loans for the Italy acquisition and its subsequent renovation works.

Revenue per Available Room (RevPAR) rose 2.6 per cent to $160 while average occupancy rate increased by 2.3 percentage points.

Particularly, Singapore hotels RevPAR increased 4.3 per cent year on year, due to stable corporate demand, additional business from Asean Summit meetings and support from Chinese and Indian leisure travellers.

Its overall distribution to stapled securityholders, after retention for working capital, was $33.4 million, a 1.5 per cent drop from the year-ago period.

Revenue for FY 2018 fell 1.2 per cent, with NPI falling 3.8 per cent. Total distribution to stapled securityholders increased 1.1 per cent, and DPS edged up 0.4 per cent to 9.26 Singapore cents.

Vincent Yeo, chief executive officer of CDLHT's managers, said that the Reit has delivered stable distribution to stapled securityholders in 2018 despite increasing uncertainty in the macro environment.

He added that proceeds from CDLHT's divestments have been used for the Italy hotel acquisition, which has broadened the Reit's income base.

For the local market, Mr Yeo said: "We continue to focus on organic growth where our core portfolio in Singapore is recording improved performance amidst a recovering hotel sector".

The counter closed up one cent at $1.58 on Monday.