CLD Hospitality Trusts suffer 1.17% dip in profits

Gross revenue also slid.

According to a release, CDL Hospitality Trusts, a stapled group comprising CDL Hospitality Real Estate Investment Trust, a real estate investment trust, and CDL Hospitality Business Trust, a business trust, today announced its results for the third quarter and nine months ended 30 September 2012.

In 3Q 2012, CDLHT registered gross revenue of S$36.1 million, compared to S$36.4 million in the previous corresponding quarter (“3Q 2011”). This was mainly due to slightly lower revenue per available room achieved by the Singapore Hotels, as a result of the weaker macroeconomic environment impacting Singapore’s economy and hospitality sector.

The fixed rent contribution from the Australia Hotels in 3Q 2012 was also slightly lower than that in 3Q 2011 due to a translation loss arising from the weakening Australian dollar.

Accordingly, net property income for the reporting quarter was S$33.6 million, compared to S$34.0 million for the same period last year. Correspondingly, income available for distribution (before deducting income retained for working capital) for 3Q 2012 fell marginally by 1.3% year-on-year to S$29.2 million.

Income available for distribution per Stapled Security (after deducting income retained for working capital) for 3Q 2012 was 2.72 cents, compared to 2.77 cents in 3Q 2011.

For YTD Sep 2012, CDLHT achieved gross revenue of S$111.2 million, up 7.6% from S$103.3 million for the same period last year. The improvement was attributed to
improved hospitality performance across the portfolio, the recognition of a full nine-month income contribution from Studio M Hotel (acquired on 3 May 2011) as compared to only 151 days in YTD Sep 2011, and the contribution of a full year’s variable income of S$1.8 million (or A$1.3 million) from the Australia Hotels as compared to an eight-month variable income of S$0.84 million (or A$0.65 million) recognised in the same period last year.

NPI for YTD Sep 2012 increased 4.1% from S$99.7 million for the previous corresponding period to S$103.7 million. The year-on-year NPI improvement for YTD Sep 2012 would have been higher at 7.7% if the oneoff property tax refund of S$3.3 million last year, which did not recur this year, were excluded from YTD Sep 2011. 

In line with the improved operating results for YTD Sep 2012, income available for distribution (before deducting income retained for working capital) for the period increased 4.4% year-on-year to S$90.4 million. Income available for distribution per Stapled Security (after deducting income retained for working capital) for YTD Sep 2012 increased 3.8% from 8.11 cents recorded in YTD Sep 2011 to 8.42 cents.