A good performance from the hospitality and retail segments has helped push up first-quarter results for OUE Hospitality Trust (OUE H-Trust).
It reported yesterday first-quarter distribution per stapled security (DPS) rose 18.2 per cent to 1.3 cents from the same period last year.
Distribution income grew 19.1 per cent to $23.5 million for the three months to March 31, owing to higher contributions from the hospitality and retail segments and lower interest expenses, among other things.
Quarterly net property income was up 4.3 per cent to $27.4 million from a year earlier, while revenue rose 6.4 per cent to $32.1 million.
OUE H-Trust is a stapled group comprising OUE Hospitality Real Estate Investment Trust and OUE Hospitality Business Trust.
Its portfolio includes hotels Mandarin Orchard Singapore and Crowne Plaza Changi Airport, and the Mandarin Gallery mall.
AT A GLANCE
$32.1 million (+6.4%)
NET PROPERTY INCOME:
$27.4 million (+4.3 %)
DISTRIBUTION PER STAPLED SECURITY:
1.3 cents (+18.2 %)
Hospitality revenue in the first quarter rose by $1 million, partly owing to higher master lease income from Crowne Plaza Changi Airport.
Second-quarter turnover for its retail segment was up $1 million from a year ago, owing to a higher average occupancy rate at 94.7 per cent, compared with 82.9 per cent a year earlier. The mall recorded an effective rent per sq ft per month of $23.70 for the quarter, compared with $24.40 a year earlier.
Mr Christopher Williams, chairman of OUE Hospitality Reit Management, said the trust did well thanks to "increased contribution from the 563-room enlarged Crowne Plaza Changi Airport and higher occupancy at Mandarin Gallery".
He added: "The operating environment is expected to remain challenging, and OUE H-Trust will continue to focus on active asset management to optimise the performance of its assets."
The trust expects a tough retail scene in Singapore and has introduced "lower base rents and higher turnover rents" for some tenants.
The counter closed flat at 71.5 cents yesterday, before the earnings were announced.