SINGAPORE (May 4): The manager of OUE Hospitality Trust (OUE HT) has announced a distribution per stapled security (DPS) of 1.3 cents, representing a 18.2% increase from the 1.1 cent DPS declared a year ago.
OUE HT is a stapled group comprising OUE Hospitality REIT and OUE Hospitality Business Trust.
Gross revenue for the quarter grew 6.4% to $32.1 million from $30.1 million in the previous year, with higher contributions from both trust’s hospitality and retail segments.
Hospitality revenue was $1 million higher than the year before at $23.4 million, which was largely a result of $1.6 million of higher master lease income from Crowne Plaza Changi Airport (CPCA) which more than offset the $0.6 million decrease in master lease income from Mandarin Orchard Singapore (MOS).
Retail revenue, too, grew 12.3% to $8.7 million due to a higher average occupancy rate at 94.7% as compared to 82.9% in the same quarter a year ago.
Net property income (NPI) increased by 4.3% to $27.4 million from $26.3 million in 1Q16, boosted mainly by a 17.6% increase in contributions from retail to $6.4 million from $5.4 million in the previous year.
Master lease income from MOS was $0.6 million lower than that of 1Q16, as MOS recorded a lower RevPAR of $217 as compared to RevPAR of $222 in 1Q16 despite improved occupancy.
This was largely due to lower average room rates achieved in the absence of biennial meetings, incentives, convention and exhibition (MICE) events such as the Singapore Airshow and a competitive market.
On the other hand, master lease income from the enlarged CPCA was $1.6 million higher than 1Q16 due to enlarged room inventory in CPCA with the addition of Crowne Plaza Changi Airport hotel extension’s (CPEX’s) 243 rooms which opened for business on 1 August 2016.
Noting a challenging retail scene as well as continued headwinds in the tourism industry, OUE HT’s manager says it will continue to actively seek growth opportunities and yield-accretive acquisitions from its sponsor and third parties.
Units of OUE HT closed flat at 72 cents on Thursday.