Saturday, October 31, 2009

CDLHT’s distributable income for Q3 slips 30.5%

CDL Hospitality Trusts (CDLHT) has posted distributable income of about $16.97 million for the third quarter ended Sept 30, 2009, a 30.5 per cent drop from the same period last year.

The $16.97 million is after deducting $1.66 million that the trust is retaining for working capital.

The net distributable income for Q3 2009 reflects a distribution per unit of 2.04 cents for the period, which is 30.4 per cent lower than the 2.93 cents in the same year-ago period. However, CDLHT will not be making a payout for Q3.

CDLHT owns five Singapore hotels, the Orchard Hotel Shopping Arcade as well as Rendezvous Hotel Auckland.

Although its Singapore hotels suffered a 28 per cent year-on-year decline in room revenue per available room (or RevPAR) to $154 in Q3 2009, this was the strongest quarter performance this year.

The Q3 showing was a ’significant improvement compared to the 39.6 per cent year-on-year decline in RevPAR in Q2 2009′, CDLHT said. ‘Management expects the positive trend of an easing in year-on-year RevPAR decline to continue into Q4 2009.’

Beyond this year, the trust is ‘poised to participate in the next tourism growth cycle as new demand generators act as catalysts in enhancing Singapore’s appeal’, it added.

Gross revenue slipped 21.4 per cent year on year to $22.9 million for Q3.

Although the Singapore hotels were able to maintain their occupancy rates at 86 per cent in the third quarter of 2009 due to contributions from the Apec conference and the Formula One Singapore Grand Prix, the average room rates achieved for the quarter remained soft due to stiff market competition, which was fuelled by cutbacks in business and leisure travel following the global financial crisis.

Net property income fell 21.5 per cent to $21.4 million for Q3 2009.

The counter ended three cents higher at $1.59 yesterday.

Source: Business Times, 31 Oct 2009

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