Eagle Hospitality Trust reports 3Q19 net property income missed IPO forecast on hurricane

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Eagle Hospitality Trust reported Wednesday its third quarter net property income came in at US$20.07 million, 2.7 percent below the forecast from its IPO prospectus.

Revenue for the quarter ended 30 September came in at US$21.52 million, 10.6 percent below the IPO forecast, the trust said in a filing to SGX.

“EHT endured unforeseen demand dislocation at its largest asset, the Holiday Inn Resort Orlando Suites – Waterpark (OHIR) driven by Hurricane Dorian, a Category 5 hurricane which threatened the South Atlantic states, particularly Florida, the southern-most state,” the trust said. The rent from OHIR was around US$600,000 below forecasts, the filing said.

The distribution per stapled security (DPS) for the quarter was 1.649 U.S. cents, 1.3 percent below the IPO forecast of 1.67 U.S. cents, the filing said.

Eagle Hospitality Trust’s prospectus included an eight-month profit forecast for the 1 May to 31 December period.

Howard Wu, founder and principal of Urban Commons, the trust’s sponsor, was upbeat on the results.

“Eagle soared through the storm and delivered DPU amidst a Category 5 hurricane impacting its largest asset. We strongly believe in the quality and location of EHT’s premium branded hotels, which on average, outperformed their markets by 9 percent,” Wu said in the statement.

Eagle Hospitality Trust, which listed on 24 May, has an initial portfolio of 18 full-service hotel properties.

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