Challenges in the retail sector dented results at OUE Hospitality Trust in the first quarter.
Distribution per stapled security (DPS) for the three months to March 31 slipped to 1.26 cents from 1.3 cents a year earlier.
That came as income available for distribution slid 2.3 per cent from the previous year to $22.9 million.
Gross revenue expanded 1.9 per cent to $32.68 million, thanks to higher contributions from the hospitality segment that more than offset a weaker performance in the retail segment.
The trust's portfolio includes Mandarin Orchard Singapore, Mandarin Gallery and Crowne Plaza Changi Airport.
Net property income grew 3.1 per cent from the previous year to $28.3 million.
AT A GLANCE
GROSS REVENUE: $32.7 million (+1.9%)
NET PROPERTY INCOME: $28.3 million (+3.1%)
DISTRIBUTION PER SECURITY: 1.26 cents (-3.1%)
Its manager said yesterday that the return of large biennial events and Singapore being the Asean chair this year are expected to raise demand for hotel accommodation.
New room supply is also expected to slow down this year. "However as the market has to absorb the additional rooms that came on-stream in the second half of 2017, the market environment remains competitive," it added.
Meanwhile, challenges in Singapore's retail scene remain, with tenants more cautious and taking a longer time to renew or commit to leases, the manager noted.
The counter fell two cents, or 2.4 per cent, to 82 cents yesterday, before the results announcement.