SINGAPORE (May 9): Ascendas Hospitality Trust (A-HTRUST) reported a 2.9% increase in its 4Q19 distribution per stapled security (DPS) to 1.77 cents, compared to 1.72 cents in 4Q18, as income available for distribution increased by 3.5% y-o-y to $20.1 million.
This was mainly attributed to full quarter contribution from the five hotels acquired during the financial year, lower net finance costs and partial distribution of the proceeds from the divestment of the two hotels in Beijing.
This brings FY19 DPS to 6.03 cents, 2.9% higher than 5.86 cents in FY18.
As at end-March, the trust has a portfolio of 14 hotels across Australia (6), Japan (5), Singapore (1) and South Korea (2), with about 4,700 rooms.
Gross revenue for the quarter declined by 1.4% to $49.0 million from $49.7 million last year, mainly due to lower contribution from the group’s other income, but was partially offset by higher gross rental revenue and food & beverage revenue.
The lower other income was due to lower contribution from Australia portfolio and unfavourable foreign exchange movement in AUD.
Property expenses dropped 5.8% to $26.2 million from $27.8 million a year ago.
Overall, net property income (NPI) for 4Q19 increased by 4.1% to $22.9 million, compared to $22.0 million in 4Q18.
Tan Juay Hiang, CEO of the managers says, “We believe that the hotels acquired in FY2018/19, which were all on master lease arrangement, and the diversity of the portfolio have continued to build up the resilience of the portfolio as a whole through added income stability and will benefit the trust as we move into the new financial year.”
Units in A-HTRUST closed at 92 cents on Thursday.
