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OUE Hospitality Trust (OUE H-Trust) saw its net property income fall 2.2 percent year-on-year to $27.66 million in the first quarter of 2019, while gross revenue dropped three percent year-on-year to $31.7 million.
With this, distributable income declined 5.5 percent year-on-year to $21.7 million from 22.9 million previously. Distribution per stapled security (DPS) also fell 6.3 percent year-on-year to 1.18 cents.
In an SGX filing, OUE H-Trust attributed the lower distributable income to “lower income from the hospitality segment and higher interest expense, partially mitigated by higher income received from the retail segment”.
“The trading environment for the hospitality sector was soft in the beginning of 2019, in the absence of the large-scale biennial events this year,” said Chen Yi-Chung Isaac, Acting CEO of the REIT Manager.
“The lower DPS in Q1 2019 was mainly due to lower average room rates and demand, as well as lower banquet and food and beverage sales at Mandarin Orchard Singapore, resulting in lower income from the hospitality segment.”
Mandarin Orchard Singapore posted a lower revenue per available room (RevPAR) of $211 in Q1 2019, down 8.9 percent from $232 in Q1 2018.
Meanwhile, master lease income from Crowne Plaza Changi Airport (CPCA) remained the same as Q1 2018 at minimum rent.
CPCA’s RevPAR marginally increased to $185 during the period under review, from $184 in Q1 2018.
“As the master lease income was below the minimum rent, minimum rent was received for the period,” said the trust.
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
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