CDL Hospitality Trusts' net property income up 11.4%

Exterior of The Lowry Hotel in Manchester.
Exterior of The Lowry Hotel in Manchester.PHOTO: CDL HOSPITALITY TRUST

CDL Hospitality Trusts (CDLHT) reported a healthy set of second-quarter numbers on a better performance of assets in Britain, New Zealand and Singapore.

However, distribution per stapled security for the second quarter fell 3.7 per cent year on year to 2.08 cents, taking into account the effects of a rights issue announced last month.

Net property income jumped 11.4 per cent year on year to $34.9 million, the trust managers reported yesterday as revenue for the three months to June 30 leapt 12.7 per cent year on year to $47.8 million.

The gain, however, was partly offset by a weaker performance from hotels in Japan, resorts in the Maldives and Hilton Cambridge City Centre.

CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust and CDL Hospitality Business Trust.

"The implementation of our diversification strategy in the past few years has allowed us to deliver income growth and... our core market, Singapore, has displayed stability amid a competitive trading environment," said Mr Vincent Yeo, the trust manager's chief executive.


    GROSS REVENUE: $47.8 million (+12.7%)

    NET PROPERTY INCOME: $34.9 million (+11.4%)

    DISTRIBUTION PER STAPLED SECURITY (after effects of rights issue): 2.08 cents (-3.7%)

The earnings growth was partly driven by higher contributions from The Lowry Hotel in Manchester, acquired on May 4, higher variable rental income from the Grand Millennium Auckland in New Zealand, as well as those in Singapore and retail mall Claymore Connect.

CDLHT's $2.7 billion portfolio comprises 17 hotels, a retail mall and two resorts with a combined 5,414 rooms in Singapore, Australia, Japan, New Zealand, Britain, Germany and the Maldives.

The trust managers said the average portfolio occupancy improved to 86.2 1per cent in the second quarter, from 83.5 per cent the year before.

However, revenue per available room dipped by 1.4 per cent year on year to $155 during the quarter.

Quarterly earnings per stapled security was 1.3 cents, down from 1.81 cents a year ago. Meanwhile, net asset value per stapled security shrank to $1.5454 as at June 30, from $1.5513 as at Dec 31, 2016.

CDLHT booked an 8.8 per cent rise in first-half net property income from the same period last year to $70.8 million, as revenue jumped by 8.2 per cent to $94.2 million. Mr Yeo added: "With an enlarged debt headroom and strengthened balance sheet from the rights issue, we will continue to pursue suitable acquisitions and asset-enhancement initiatives."

The counter closed half a cent higher at $1.59 yesterday after the results were announced.

A version of this article appeared in the print edition of The Straits Times on July 29, 2017, with the headline 'CDL Hospitality Trusts' net property income up 11.4%'. Print Edition | Subscribe