CDL Hospitality Trusts’ DPU down 24% on-year

Mainboard listed CDL Hospitality Trusts said it will pay 2.23 Singapore cents per unit in the third quarter, down about 24 per cent on-year.

Its total income available for distribution in the quarter came to S$18.6 million.

Mr Vincent Yeo, CEO of M&C REIT Management, said the weaker on-year performance reflects the impact of the global recession on travel since the beginning of this year.

For the third quarter, CDL Hospitality booked a net property income of S$21.4 million, a 21.5 per cent decrease on-year. This was an improvement over the 30.6 per cent on-year drop registered in the last quarter.

The trust said the third quarter was the strongest three-month period in terms of revenue per available room and occupancy rates, as a result of a revival in business confidence.

It said its average occupancy rate rose by 10.6 percentage points to 86.1 per cent in the third quarter, while revenue per available room climbed 14.9 per cent to S$154.

Going forward, CDL Hospitality expects a demand boost from the opening of the two integrated resorts in Singapore. It added that the trust has a strong balance sheet and sound fundamentals.

The trust also said that it has an interest cover of ten times for the third quarter and has no further debt refinancing needs until 2012. It added that it is well positioned to pursue yield enhancing acquisition opportunities.

Source : Channel NewsAsia – 30 Oct 2009

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