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A-HTRUST Positive On Long-Term Growth

AHTRustAscendas Hospitality Trust (SGX: Q1P), or A-HTRUST for short, which floated on the Singapore market last year, has a portfolio of 11 hotels across China, Japan, Australia and Singapore with more than 3,900 rooms.

The company reported gross revenue of $48.0 million for the first quarter. Net property income (NPI) was $16.2 million and the distributable income was $10.9 million.

The distribution per unit (DPU) was 1.35 cents and this excludes the impact of its Park Hotel Clarke Quay acquisition, where equity fund was raised.

As of 30 June 2013, the gearing stood at 35.4% with a borrowing rate of 2.9% and a weighted average debt to maturity of 2.5 years.

Three hotels, namely Novotel Sydney Parramatta, Pullman & Mercure Brisbane King George Square and Pullman Cairns International have completed refurbishment works as planned. Three other hotels are close to completion as seen below.

AHTrustTable

Mr Tan Juay Hiang, Chief Executive Officer of the Ascendas Hospitality Fund Management. and Ascendas Hospitality Trust Management, said: “As more than 95% of our total borrowings are on fixed interest rates, this mitigates the impact of any interest rate hikes. We closely monitor our hedging policies and loan profile to ensure they are appropriate in relation to the portfolio. We believe these efforts will position us well for long term growth.”

He went on to say: “We are actively working with the hotel managers to put in place the appropriate operation strategies to maximise profitability and offer value to our stapled security holders.

A-HTRUST closed at $0.845 on 7th August 2013.

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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.