SINGAPORE - CDL Hospitality Trusts (CDLHT) reported on Wednesday (April 26) a 9 per cent rise in distribution per stapled security (DPS) for the first quarter after strong growth in income from its New Zealand Hotel.
The stapled group comprises CDL Hospitality Real Estate Investment Trust (H-Reit) and CDL Hospitality Business Trust.
Net property income (NPI) rose 6.4 per cent to S$35.9 million year on year as the New Zealand hotel saw higher variable rental income. There was also incremental contribution from Claymore Connect while NPI contribution from its Singapore hotels was largely unchanged, said the trust's manager.
However, the growth in NPI was partially offset by lower contributions from its Japan hotels and the Maldives resorts as well as a decline in variable rent from its Australia hotels.
Total distribution to stapled securityholders, after retention for working capital, for the three months to March 31, 2017, increased 10 per cent year on year to S$24.1 million.
Mr Vincent Yeo, CEO of the trust's manager, said, "Our diversification strategy coupled with active asset management has allowed us to navigate the headwinds faced in some of our core markets. In particular, Grand Millennium Auckland's new lease, which was negotiated last year, allows CDLHT to capture the strong growth in the New Zealand market."