DESPITE a tough year, CDL Hospitality Trusts had some bright news for unit-holders when releasing its annual results yesterday.
Retail space at one property in its portfolio, Orchard Hotel, has been boosted by about 5,000 sq ft – which has been leased by a new tenant who will set up a bistro and live music venue.
The trusts, a combined hospitality real estate investment trust and a business trust, put in a stronger fourth quarter with income to be distributed to unit-holders up 48.3 per cent to 2.67 cents.
However, for the full year ended Dec 31, income to be distributed fell 19.3 per cent to 8.57 cents per unit.
The trusts recorded gross revenue of $26.1 million in the fourth quarter, down 7.1 per cent. Full- year gross revenue slid 20 per cent to $91.8 million.
The decline in gross revenue was attributed to the economic downturn and H1N1 that affected the tourism industry in the first half of last year.
The trusts’ net property income showed improvement in the fourth quarter by increasing 14 per cent to $24.7 million. But the full-year figure dropped 16.4 per cent to $85.9 million.
Distributable income for stapled securities holders stands at $21.7 million in the fourth quarter, up 14 per cent from $19 million the year before. The full-year distributable income, however, declined 17.6 per cent to $75.8 million.
Despite the general negative outlook of the full- year results, analysts remain upbeat as they expect the entertainment and tourism industry to grow this year with the opening of the integrated resorts.
Mr Vincent Yeo, chief executive of M&C Reit management, the manager of CDL Hospitality Real Estate Investment Trust, said the trusts saw increasing demand throughout the second half of last year.
‘In the fourth quarter, we achieved an occupancy rate of 89 per cent, which was not only the highest for the year, but also higher than that of all four quarters in 2008, albeit at a reduced room rate,’ he said.
Source: Straits Times, 28 Jan 2010