Singapore REIT

CDL Hospitality Trust’s H1 DPU Declines 63.7%

July 29, 2020 — CDL Hospitality Trusts (“CDLHT” or the “Group”), a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment trust, and CDL Hospitality Business Trust (“HBT”), a business trust, announced its results for the first six months (“1H 2020”) ended 30 June 2020.

  1. Financial Highlights:
1 Jan 2020 to 30 Jun 2020 S$’000 (“1H 2020”)1 Jan 2019 to 30 Jun 2019 S$’000 (“1H 2019”)Decrease (%)
Revenue52,05993,767(44.5)
Net property income (“NPI”)29,72167,529(56.0)
Total distribution to Stapled Securityholders (after retention)18,35250,384(63.6)
Total distribution per Stapled Security (after retention) (“DPS”)(cents)1.514.16(63.7)

The unprecedented downturn in global tourism and travel with the COVID-19 pandemic has completely changed the operating landscape due to strict travel restrictions and social distancing measures implemented across most countries, which has sharply impacted the performance of CDLHT’s portfolio.

With the exception of the New Zealand and Singapore hotels1, most of CDLHT’s properties were either closed on a temporary basis or were operating at low occupancies from March 2020 onwards. While international demand was absent, occupancies for the New Zealand and Singapore hotels were bolstered by demand for accommodation facilities which were used for isolation purposes. Additionally, occupancy for the Singapore Hotels was also supported by demand from foreign workers affected by the border closures.

Accordingly, total revenue and NPI for 1H 2020 declined yoy by 44.5% and 56.0% to S$52.1 million and S$29.7 million respectively. The substantive contributions to the portfolio rental income from the Singapore, New Zealand and Australia hotels, which amounted to S$32.1 million (inclusive of S$22.7 million fixed rent), partially insulated CDLHT from the severe effects of the pandemic.

Interest expense for 1H 2020 was lower by S$1.1 million yoy mainly due to lower funding costs on floating rate loans.

Read more here..

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