CDL Releases 2Q Results

CDL Trust logo CDL Hospitality Trusts (SGX: J85), or CDLHT, comprising CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT), a business trust, released its 2nd Quarter 2013 (2Q 2013) results last Friday.

Its gross revenue for 2Q 2013 was $35.6 million, 2.9% lower than in 2Q 2012, largely due to lower gross revenue from its Singapore hotels. This was offset by a $1.9 million revenue boost from the Angsana Velavaru resort in the Maldives, which was acquired in January 2013. Net property income for 2Q 2013 fell 4.4% year-on-year to S$32.6 million due to lower contribution from the Australian hotels. This was a result of translation loss arising from the weaker Australian dollar.

Income to be distributed per Stapled Security for 2Q 2013 (after deducting income retained for working capital) was 2.72 cents, as compared to 2.92 cents recorded in 2Q 2012, a dip of 6.8%.

The gearing ratio is at 29.7% as of 30th June 2013. The average occupancy for the Singapore hotels is at 87.7%. The Room Revenue per Available Room (RevPar) for 2Q 2013 went down 8.5% over the previous year to $193.

Orchard Hotel Shopping Arcade, excluding the Galleria (OHSA) will be undergoing asset enhancement initiative (AEI) beginning late 2013. This AEI is expected to complete in a year. During this period, the mall will be closed and there will be no income contribution from this asset. After the AIE, OHSA will sport a brand new look and hopes to reposition it as a family-centric mall with enhanced retail offerings.

Mr Vincent Yeo, CEO of M&C REIT Management Limited, the manager of H-REIT, said, “Our performance for 2Q and the first half of 2013 was affected by a more competitive hospitality operating environment and overall weaker corporate demand due to the economic uncertainty. “Despite challenging market conditions, our Singapore Hotels have been able to maintain a healthy occupancy rate in the high 80% range. The latest addition to our portfolio this year, Angsana Velavaru in the Maldives, has also continued to make positive contributions.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.