SINGAPORE (Jan 29): Ascendas Hospitality Trust (A-HTRUST) posted distribution per stapled security (DPS) of 1.45 cents for the 3Q18/19 ended December, 2.8% higher than DPS of 1.41 cents a year ago.
This was mainly attributed to the absence of due diligence costs incurred in the corresponding quarter last year in relation to a proposed acquisition which did not materialise, as well as lower net financing costs.
Income available for distribution in 3Q18/19 rose 3.4% to $17.7 million, from $17.2 million a year ago, mainly due to lower expenses and lower net financing costs.
Excluding contribution from A-HTRUST’s China portfolio which was divested in May 2018, gross revenue fell 5.1% to $50.1 million for 3Q18/19, from $52.8 million a year ago.
Net property income (NPI) held steady at $23.2 million in 3Q18/19, as contribution from the newly acquired hotels in Korea and Japan made up for loss of NPI resulting from the sale of China hotels.
Including the China portfolio, gross revenue and NPI would have been 13.7% and 8.0% lower, respectively.
Average occupancy rate for A-HTRUST’s portfolio of hotels in Australia, which accounts for close to 75% of gross revenue, dipped by 0.7 percentage points to 86.0%, while revenue per available room (RevPAR) fell 3.8% to A$154 in 3Q18/19.
Gearing remains at 33.1% as at Dec 31, 2018.
As at end December, cash and cash equivalents stood at $51.4 million.
Looking ahead, A-HTRUST says contributions from the newly acquired hotels and the diversified nature of the portfolio will help to mitigate the impact amid expected continued headwinds in Australia.
“Despite challenging market conditions in Australia, we are pleased to announce an increase in distribution as the trust continued to benefit from a diversified portfolio,” says Tan Juay Hiang, chief executive officer of the managers.
“The acquisitions of the five hotels during the year reinforced our diversification strategy and will add further stability to the income stream, and as a result, strengthened the resilience of the portfolio as a whole,” he adds.
Units in Ascendas Hospitality Trust closed flat at 83.5 cents on Tuesday.
