CDL Hospitality Trusts reports distribution income of S$7.9m

CDL Hospitality Trusts has reported a distribution income of nearly S$7.9 million for the period from July 19 to September 30.This is 6 percent higher than its forecast during its initial public offering, and it works out to a distribution per unit of 1.13 cents.

CDL Hospitality was listed on July 19.

Property income was 2.7 percent better than projected at S$10.3 million.

CDL Hospitality says it expects results for the next reporting period to be in line with the positive outlook for the hotel industry.

CDL Hospitality Trusts comprises CDL Hospitality Real Estate Investment Trust (H-REIT) and CDL Hospitality Business Trust.

H-REIT announced its first acquisition on Monday.

It is buying one of New Zealand’s biggest hotels Rendezvous Hotel
Auckland for $116 million.

The acquisition provides H-REIT with a higher annualised property yield of 7.9% compared to its current portfolio annualised property yield of 4.9% for the financial year ending 31 December 2007.

But the purchase will be funded via debt, which will increase H-REIT’s gearing from 31.5% to 39.8%.

Source: Channel NewsAsia, 30 October 2006

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