CDL Hospitality Trusts 4Q18 net property income fell on divestments

CDL Hospitality Trusts reported on Tuesday its fourth quarter net property income fell 5.4 percent on-year to S$38.41 million on the divestment of two Australian hotels in January 2018 and the temporary closure in June of the Dhevanafushi Maldives Luxury Resort for renovations.

Revenue for the quarter ended 31 December fell 5.4 percent on year to S$52.28 million, it said in a filing to SGX before the market open on Tuesday.

That compared with a forecast from Daiwa for net property income of S$39.6 million on revenue of S$53.4 million.

Properties in Singapore, Germany and Japan posted better performance, while the newly acquired Hotel Cerretani Florence in Italy provided an incremental contribution, the trust said, but noted that was partially offset by a lower contribution from the U.K. and a weaker New Zealand dollar.

The distribution per stapled security, or DPS, was 2.77 Singapore cents, down 2.1 percent on-year from 2.83 Singapore cents in the year-ago quarter, the trust said.

Daiwa had forecast a DPS of 2.76 Singapore cents.

For the quarter, the average occupancy rate rose 2.3 percentage points on-year to 85.8 percent, while revenue per available room, or RevPAR, was S$160, up 2.6 percent on-year, CDLHT reported.

For the full-year, net property income fell 3.8 percent on-year to S$146.05 million on revenue of S$201.80 million, down 1.2 percent, with a DPS of 9.26 Singapore cents, up 0.4 percent from 9.22 Singapore cents a year earlier, the trust reported.

JPMorgan had forecast full-year net property income of S$146 million on revenue of S$203 million, with DPS of 9.1 Singapore cents.

In the outlook, Vincent Yeo, CEO of CDLHT’s managers, pointed to uncertainty in the macro environment, but also noted the trust’s new acquisition, which used the proceeds from its divestment and marked the entry into a new market.

Yeo also said that the core portfolio in Singapore was seeing improved performance as the hotel sector recovers from a glut of new rooms in recent years and that the trust was also pursuing asset enhancement initiatives, such as the ongoing refurbishment of the Orchard Hotel.

CDLHT’s portfolio includes six hotels in Singapore, three hotels in Australia, two hotels in Japan, one hotel in New Zealand, two hotels in the U.K., one hotel in Germany, one hotel in Italy and two resorts in the Maldives.

Correction: This article has been updated to change the comparison with Daiwa’s forecasts. 

 

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