CDL Hospitality Trusts reported Tuesday second quarter net property income edged up 0.5 percent on-year to S$33.76 million, missing a forecast from Daiwa.
“CDLHT is undergoing a transition period due to major asset enhancement initiatives which have impacted our overall results for this quarter,” Vincent Yeo, CEO of the trust’s managers, said in the statement. “The macro economic environment, which has weakened due to ongoing trade conflicts, may continue to weigh on demand in the near term.”
Revenue for the quarter ended 30 June was S$47.45 million, down 0.5 percent on-year, the trust said in a filing to SGX.
The distribution per stapled security (DPS) was 2.07 Singapore cents, down 3.3 percent from 2.14 Singapore cents in the year-ago period, the filing said.
Daiwa had forecast net property income of S$37.1 million, revenue of S$51.4 million and a DPS of 2.11 Singapore cents.
“The better performance of Pullman Hotel Munich in Germany and the U.K. Hotels, and inorganic contribution from Hotel Cerretani Florence boosted CDLHT’s portfolio net property income (NPI). However, the growth in NPI was largely offset by the drop in Singapore and Maldives contribution mainly due to extensive room enhancement works at Orchard Hotel in Singapore and the closure of Raffles Maldives Meradhoo for renovation,” the statement said.
“Apart from the more transitionary renovation works affecting the performance of the Singapore hotels, there was also softer overall demand due to economic uncertainty and regional elections, and the absence of the biennial Food&HotelAsia,” the filing added. “The NPI from New Zealand and Japan was lower due to competitive trading conditions while fixed rent from the Australia Hotels was lower due to a weaker Australian dollar.”
For the quarter, the average occupancy rate rose 0.7 percentage point to 84.2 percent, with revenue per available room (RevPAR) at S$151, down 1.7 percent on-year, the filing said.
For the first half, CDL Hospitality Trusts reported net property income fell 5.4 percent on-year to S$67.53 million on revenue of S$93.77 million, down 5.8 percent on-year, with a DPS of 4.16 Singapore cents, down 3.5 percent on-year.
CDL Hospitality Trusts’ portfolio included 16 hotels, two resorts and a retail mall as of end-June, the filing said.
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