SINGAPORE - CDL Hospitality Trusts reported a 9 per cent fall in distribution per stapled security to 2.22 Singapore cents for the first quarter ended March 31 from 2.44 cents for the year-ago period.
Net property income fell 2.3 per cent to S$33.7 million, as the Singapore hotels and Maldives resorts had a soft trading environment, and the Australia hotels saw lower rents, partly due to local currency weakness against the Singapore dollar. That was mitigated by the contribution from Hilton Cambridge City Centre and higher rents from the New Zealand hotel.
Distributable income fell 8.5 per cent to S$21.9 million. It does not include contribution from the Japan hotels, which will be available for distribution in the second quarter.
Said Mr Vincent Yeo, chief executive officer of the trusts' managers: "The weak global economy has given rise to a challenging operating environment. Although there has been some improvement in visitor arrivals, corporate expenditure remains constrained which has affected our core Singapore portfolio performance.
"The performance has also been affected by our ongoing asset enhancement initiatives at Grand Copthorne Waterfront Hotel and M Hotel which are slated for completion in 2016. However, we believe that by augmenting our assets at this opportune time, it will enhance their competitive position and allow them to capitalise on the positive mid-to-long term outlook of Singapore tourism sector."