CDL Hospitality Trusts posts 11.9% fall in second-half DPS

SINGAPORE - The managers of CDL Hospitality Trusts (CDLHT) on Jan 27 posted a distribution per stapled security (DPS) of 2.81 cents for the second half ended December 2024, down 11.9 per cent from 3.1 cents in the previous corresponding period.

This brings total DPS for financial year 2024 to 5.32 cents, down 6.7 per cent year on year.

The second-half distribution will be paid on Feb 28, after books closure on Feb 6.

Distributable income fell 10.9 per cent to $35.4 million for the second half, from $39.8 million in the same period the year before.

The lower distribution and DPS came as net property income contribution from a residential property in Manchester was insufficient to cover interest costs during the gestation period, said CDLHT’s managers.

They also attributed the decline to higher interest costs and lower net property income (NPI) across its portfolio, as well as the absence of a one-off capital distribution of $900,000 arising from the liquidation proceeds of an Australian subsidiary.

Excluding the one-off liquidation proceeds, total distribution and DPS would have declined by 8.9 per cent and 9.9 per cent, respectively, year on year.

Revenue decreased by 3.9 per cent to $132.9 million, from $138.3 million the year before.

NPI fell 9 per cent on the year to $68.7 million for the half-year period, from $75.5 million.

The decline in revenue and NPI comes as demand in some markets moderated after a period of “extraordinary post-pandemic growth”, said the managers.

Revenue per available room was recorded in most of CDLHT’s portfolio, except Singapore and New Zealand. The stapled group’s portfolio consists of property in eight countries, including Japan, Britain, Australia and the Maldives.

Stapled securities of CDLHT ended one cent lower at the close on Jan 27 at 85.5 cents.

THE BUSINESS TIMES