SINGAPORE - Lower income from both the hotel and retail segments put a drag on second quarter distribution to unit holders of OUE Hospitality Trust.
Distribution per stapled security (DPS) for the three months to June 30 was 0.92 cents, down by 39.5 per cent from the 1.52 cents reported for the same period a year ago, the trust said on Monday.
Excluding the rights issue done earlier this year, the trust said its DPS in the second quarter of the year would have been 1.23 cents.
Income available for distribution slipped 18 per cent to $16.56 million, owing to lower net property income from both its hospitality and retail segments, and higher finance expenses.
OUE Hospitality Trust (OUE H-Trust), is a stapled group comprising OUE Hospitality Real Estate Investment Trust (OUE H-REIT) and OUE Hospitality Business Trust (OUE H-BT). The properties in its portfolio are hotels Mandarin Orchard Singapore and Crowne Plaza Changi Airport, and retail mall Mandarin Gallery.
Revenue for quarter fell 9.2 per cent to $26.87 million, compared with $29.6 million in the previous year. Net property income for the April to June period came in at $23.16 million, down by 10.2 per cent from a year ago.
For the first half of the year, OUE H-Trust posted a 4 per cent drop in net property income to $49.45 million ,while revenue came in at $57.02 million, 3.3 per cent lower than the year before.
The trust told a briefing on Monday that it expects revenue and earnings to improve for the third and fourth quarter, partly boosted by the acquisition of Crowne Plaza Changi Airport Extension which commenced operations today (Aug 01).
The counter closed two cents lower at 71 cents on Monday (Aug 01) evening, before the earnings were announced.