SINGAPORE (July 28): The managers of CDL Hospitality Trusts (CDLHT) post a 4.7% decline in distribution per stapled security (DPS) of 4.10 cents for the first half ended June, from a restated DPS of 4.30 cents a year ago.
This is after taking into account a rights issue launched by CDLHT on June 27, 2017, with new stapled securities to be listed on Aug 2, 2017.
Excluding the effects of the rights issue, DPS would have increased by 10.3% to 4.91 cents in 1H 2017, from 4.45 cents a year ago.
Total distribution to stapled securityholders grew 11.3% to $49.0 million for 1H 2017, from $44.0 million a year ago.
Gross revenue in 1H rose 8.2% to $94.2 million, from $87.1 million a year ago.
This was mainly attributed to inorganic contribution of $3.7 million from The Lowry Hotel in the UK, which was acquired on May 4, 2017.
CDLHT also benefitted from stellar performance by the New Zealand Hotel, which posted a y-o-y revenue growth of $4.8 million, due to the change in rental structure to include more variable rent.
However, the improvement was dampened by lower gross revenue from the other properties.
Consequently, net property income grew 8.8% to $70.8 million, from $65.0 million a year ago.
Cash and cash equivalents for CDLHT stood at $78.3 million as at June 30, 2017.
“The implementation of our diversification strategy in the past few years have allowed us to deliver income growth and we are also pleased that our core market, Singapore, has displayed stability amidst a competitive trading environment. We continue to be focused on enhancing our portfolio and returns for stapled securityholders,” says Vincent Yeo, CEO of CHLHT’s managers.
Units of CDLHT closed half a cent higher at $1.59 on Thursday.
