CDL Hospitality Trusts cuts second-half DPS by 11% to 3.06 cents
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W Singapore Sentosa Cove Hotel, one of the properties owned by CDL Hospitality Trust.
PHOTO: CDL HOSPITALITY TRUSTS
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SINGAPORE (THE BUSINESS TIMES) - CDL Hospitality Trusts' (CDLHT) distribution per stapled security (DPS) fell by 11 per cent to 3.06 cents for its second half ended Dec 31, 2021, from 3.44 cents a year ago.
Gross revenue, however, was up 39.7 per cent to $91.5 million for the half-year period, from $65.5 million a year ago.
CDLHT had observed a recovery in lodging demand amid a relaxation in travel restrictions and broader distribution of vaccines, its managers said in a bourse filing on Friday (Jan 28).
Net property income (NPI) grew 24.1 per cent year on year to $49.1 million for the half year, from $39.6 million.
NPI growth was driven by more contributions from CDLHT's properties in Britain, the Maldives, Germany, New Zealand and Japan. However, this was offset by lower NPI from its remaining properties, of which a $2.2 million decline was due to a divestment of Novotel Singapore Clarke Quay and Novotel Brisbane.
The total distribution to stapled security holders, after a retention for working capital, fell 10.6 per cent on a yearly basis to $37.6 million, from $42.1 million.
The distribution will be paid out on March 1, 2022, after books closure on Feb 10.
Meanwhile, for the full year ended Dec 31, 2021, DPS was lower at 4.27 cents versus 4.95 cents a year ago, and the total distribution after a retention for working capital fell 13 per cent to $52.6 million.
Gross revenue for financial year 2021 was 34.2 per cent higher at $157.7 million, while NPI rose 24.2 per cent to $86.1 million for the full year.
Mr Vincent Yeo, chief executive of CDLHT's managers, said: "While the ongoing pandemic continues to hamper the hospitality industry, most of our portfolio reflected improving underlying performances. However, the absence of contribution from two divested assets diluted our overall result."
Stapled securities of CDLHT closed at $1.14 on Thursday, down two cents or 1.7 per cent.
CDL Hospitality Trusts is a stapled group comprising CDL Hospitality Real Estate Investment Trust and CDL Hospitality Business Trust.
