CDL Hospitality Trust Q1 income available for distribution per stapled security up 17.8%

Mainboard-listed CDL Hospitality Trust says its income available for distribution per stapled security, after deducting the income retained for working capital, rose 17.8 per cent on year in the first quarter to 2.32 cents.

This translates to a distribution yield of 4.95 per cent for the quarter, based on a unit price of S$1.90 as at close of market on 29 April 2010.

Gross revenue increased 18.1 per cent to S$26.6 million.

And net property income was 20.3 per cent higher at S$24.7 million.

CDL Hospitality Trust says the better performance was due to incremental contribution from recently acquired Australia Hotels.

It says this is due to the strength in the Australian economy, which is experiencing a significant boost from the robust demand for natural resources.

Mr Vincent Yeo, CEO of M&C REIT Management, the manager of H-REIT, adds that hotel room night demand was extremely strong.

This was in line with the recovery in the global and particularly, the regional economies.

He also says the strong demand led to average daily rates rebounding year-on-year for the first time since the peak in the second quarter of 2008.

Mr Yeo says the trust remains optimistic about the continued growth for hospitality demand, driven by a rebound in business travel and the revitalisation of Singapore’s tourism and retail landscape.

Going forward, the trust says it will work towards yield-optimisation to maximise distribution per stapled security for its unitholders, while remaining vigilant for value-enhancing acquisition opportunities.

Source : Channel NewsAsia – 30 Apr 2010

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