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Average aggregate leverage ratio of the four REITs remained flat from Q2 2018 at 35.4 percent.
The four largest SGX-listed hospitality REITs saw their average net property income drop two percent year-on-year to $38 million in the second quarter of 2019, while average revenue dipped three percent year-on-year to $61.1 million, reported Singapore Business Review citing SGX.
Average distribution per unit (DPU) also declined 3.8 percent year-on-year to $0.0153.
Frasers Hospitality Trust (FHT) posted the biggest drop in NPI, which fell 11 percent year-on-year to $25.4 million, while OUE Hospitality Trust (OUE H-Trust) NPI shrank 4.5 percent year-on-year to $25.3 million.
In contrast, Ascott Residence Trust (Ascott REIT) registered the biggest growth at 7.1 percent year-on-year with $67.6 million profit. It was also the only firm to witness positive revenue and DPU growth at 1.5 percent and 7.6 percent year-on-year to $132.5 million and $0.0198 respectively.
CDL Hospitality Trust’s (CDLHT) NPI climbed 0.5 percent year-on-year to $33.8 million. It also recorded the highest DPU at $0.0207 even as it dropped 3.3 percent year-on-year.
FHT, on the other hand, posted the steepest decline as well as the lowest DPU, which declined 10.2 percent year-on-year to $0.0102. OUE H-Trust saw its DPU drop 9.4 percent year-on-year to $0.0106 per unit.
Average aggregate leverage ratio of the four REITs remained flat from Q2 2018 at 35.4 percent.
OUE H-Trust and CDLHT registered the highest aggregate leverage ratios of 38.5 percent and 35.2 percent respectively, closely followed by FHT with 35 percent. Ascott REIT came in last with a gearing of 32.8 percent.
“In the YTD, SGX’s four largest hospitality trusts averaged a total return of 13.2 percent, bringing their one-year and three year total returns to 9.4 percent and 33.0 percent. They also averaged a price-to-book ratio of 0.9x and a dividend indicated yield of 6.3 percent. The best performers amongst the four were Ascott Residence Trust and CDL Hospitality Trusts, with YTD total returns of 23.9 percent and 13.8 percent respectively,” added SGX.
The four REITs had a combined market cap of $7 billion.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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