SINGAPORE (Jan 29): The manager of OUE Hospitality Trust (OUE H-Trust) reported 4Q18 DPS tof 1.28 cents, 0.8% higher from 1.27 cents in 4Q17.

This brings DPS for FY18 to 4.99 cents, 2.9% lower than 5.14 cents in FY17.

Gross revenue for the quarter was 2.2% lower at $33.1 million from $33.8 million last year, as both the trust’s hospitality and retail segments posted a decrease of 2.6% and 0.9% in revenue, respectively.

Under OUE H-Trust’s hospitality segment, Mandarin Orchard Singapore (MOS) saw a 3.3% y-o-y decrease in revenue to $18.9 million, while Crowne Plaza Changi Airport hotel saw revenue remain at $5.63 million.

Under the trust’s retail segment the Mandarin Gallery shopping mall saw a 0.9% y-o-y decrease in revenue to $8.52 million, due to lower effective rent per square foot per month.

Property tax decreased by 19.3% y-o-y to $1.41 million, while other property expenses decreased by 3.3% y-o-y to $2.68 million.

Hence, net property income for 4Q18 came in 1.0% lower at $28.9 million from $29.2 million a year ago.

Net finance expenses dropped by 54.5% to $6.21 million from $13.6 million in the previous year, mainly due to lower interest expense, absence of a one-time write-off of unamortised debt-related transaction cost and cost of unwinding the IRS, as a result of the trust refinancing its term loans and the entering into new IRS in Dec 2017.

Lee Yi Shyan, chairman of the manager, says, “As we enter the new financial year, we remain committed to conscientiously optimising our portfolio and pursuing operational excellence across our properties for sustainable growth.”

Units in OUE H-Trust closed at 70 cents on Tuesday.