ARA US Hospitality Trust reported Tuesday its net property income for the 9 May to 30 June period was US$9.86 million, 0.4 percent above the forecast of S$9.82 million from its IPO prospectus.
The beat was due to lower property expenses from cost-management initiatives, including labor productivity improvements and energy-expense savings, ARA US Hospitality Trust said.
Gross revenue for the period running from its listing date through the quarter-end was US$28.82 million, 1.3 percent lower than the IPO forecast, the trust said in a filing to SGX.
The distribution per stapled security (DPS) was 1.36 U.S. cents, 3.8 percent above the IPO forecast for 1.31 U.S. cents, the filing said.
“We are delighted to present a strong set of results,” Lee Jin Yong, CEO of the REIT manager, said in the statement. “The U.S. economy continues to exhibit stable positive growth which bodes well for the hospitality industry.”
Portfolio occupancy was 82.8 percent with an average daily rate of US$126, the filing said.
The trust issued a positive outlook.
“The managers remain positive about their asset management initiatives to optimize revenue management and improve sales production,” the filing said. “The managers are also actively sourcing accretive acquisitions to enhance stapled securityholders’ value. The acquisition pipeline remains robust and the managers are evaluating several potential off-market and marketed transactions.”
ARA US Hospitality Trust’s portfolio has 38 hotels under the Hyatt brand across 21 U.S. states, the filing said.
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