CDL Hospitality Trusts reported Tuesday its first quarter net property income fell 10.7 percent on-year to S$33.77 million, missing a forecast from Daiwa.
Revenue for the quarter ended 31 March declined 10.6 percent on-year to S$46.32 million, the trust said in a filing to SGX.
The distribution per stapled security (DPS) was 2.09 Singapore cents, down 3.7 percent from 2.17 Singapore cents in the year-ago period, the filing said.
Daiwa had forecast net property income of S$37.9 million on revenue of S$52.2 million, with a DPU of 2.03 Singapore cents.
“CDLHT is going through a transition period due to major asset enhancement initiatives taking place which have dampened our overall results in the near term,” Vincent Yeo, CEO of the manager of CDLHT, said in the statement.
The trust said 8.6 percent of the room inventory of the Orchard Hotel in Singapore was taken out for a phased room refurbishment, and its Grand Ballroom and all meeting facilities were also closed.
The Dhevanafushi Maldives Meradhoo, located in the Maldives, remains closed for renovation works prior to its relaunch as Raffles Maldives Meradhoo, the filing said.
In addition, this year lacked the benefits of last year’s meetings related to Singapore’s chairmanship of ASEAN, or the Association of Southeast Asian Nations, and the biennial Singapore Airshow, CDLHT said.
Weaker currencies in New Zealand, Australia and the U.K. also impacted contributions, the trust said.
In the outlook, Yeo was cautiously optimistic.
“Despite the effect of global trade uncertainties and moderating economic growth, the benign hotel supply growth in the next few years will provide a constructive environment for improvement in the performance of the Singapore hotel sector,” Yeo said. “Moreover, we are encouraged that the Singapore government has set in place plans to transform key urban areas and is investing in tourism-related
infrastructure over the next decade.”