CDL Hospitality to pay 1.8 cents per stapled security for Q4 2008

CDL Hospitality Trusts will pay unitholders 1.8 cents per stapled security for the fourth quarter ending December 31, 2008. This is about 34 per cent lower than the same period in 2007.

But the full-year distribution per unit is up by 18 per cent to 10.62 cents in 2008, compared with a year ago.

The Trust said its net property income rose nearly 20 per cent on-year to S$102.8 million. Gross revenues jumped 26.5 per cent to S$114.7 million.

The strong operating performance was due to organic growth across the portfolio and a full-year’s contribution from Novotel Clarke Quay which was acquired in mid-2007.

However, CDL Hospitality Trust expects 2009 to be a challenging year in view of the global economic crisis. It said the Revenue Per Available Room (RevPAR) index already showed a 29 per cent decline in early January.

The absence of events like the Singapore Airshow in February will result in poorer operating performance in the first quarter of 2009 over the same period in the previous year.

Despite the economic downturn, the Trust is confident about the positive mid to long-term prospects for the tourism sector in Singapore.

It is also proactively managing its portfolio and financing risks, with discussions to find ways to secure refinancing of its S$273 million borrowings due in July 2009.
Source : Channel NewsAsia – 31 Jan 2009

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