As a result, the trust recorded a lower distributable income of US$4.3 million, 50.1% lower y-o-y.
The manager of ARA US Hospitality Trust (SGX:XZL
) has reported a distribution per staples security of 0.747 US cents for its 1HFY2024 ended June, 50.2% lower y-o-y.
This is on the back of higher financing costs as favourable interest rate hedges entered during 2019 matured in February and higher floating interest rates set in. Additionally, recent hedges were made in an elevated interest rate environment.
