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OUE Hospitality Trust’s (OUE H-Trust) distributable income surged by 31.8 percent to S$21.8 million in Q2 2017 from S$16.6 million in the same period a year ago, revealed an SGX filing on 1 August (Tuesday).
As a result, distribution per share (DPS) significantly increased to 1.21 cents from 0.92 cents previously.
“DPS has surged 31.5 percent on the back of higher revenue and net property income (NPI) achieved by both the hospitality and retail segments,” said Christopher Williams, Chairman of OUE Hospitality REIT Management Pte Ltd, the trust manager.
In fact, NPI rose 15 percent to S$26.6 million from S$23.2 million, while gross revenue grew 16 percent to S$31.2 million from S$26.9 million in Q2 2016.
“For the hospitality segment, Mandarin Orchard Singapore (MOS) has performed well in both room sales and the food and beverage divisions, whilst the enlarged Crowne Plaza Changi Airport (CPCA) has contributed to an increase in master lease income to OUE H-Trust,” he noted.
During the second quarter, MOS’ revenue per available room (RevPAR) rose 5.0 percent due to higher occupancy and average room rates. In addition, the better performance of the hotel’s F&B outlets and banquet business led to a S$1 million gain in master lease income, while CPCA contributed to a higher income given its larger room inventory.
“Overall, revenue from the hospitality segment increased 15.7 percent in Q2 2017,” said the trust manager’s Chief Executive Chong Kee Hiong.
For its retail segment, Mandarin Gallery’s occupancy rate improved to 93.9 percent in the second quarter from 79.1 percent a year ago when it underwent renovation works. Consequently, retail revenue was 16.8 percent higher than in Q2 2016, while NPI for the retail segment increased by 20.3 percent to S$6.5 million, Chong added.
This article was edited by Denise Djong.
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