CDL’s Hotel Trust To Pay Out 57% More Per Unit

Source : The Straits Times, Jan 31, 2008

NEW property acquisitions and asset revaluations last year helped push up income for City Developments’ (CDL) hotel trust.

CDL Hospitality Trusts (H-Trust) yesterday said revenue for its fourth quarter was $28 million, 65 per cent more than a year ago. Revenue per available room for all its Singapore hotels went up 34.5 per cent to $191 for the three months ended Dec 31.

Net property income rose 73 per cent over the same period to $26.9 million. The trust also recorded a net surplus of $239.4 million for the quarter on the revaluation of its investment properties .

Distribution per unit for the quarter was 2.76 cents, up 57 per cent from the previous year.

This brings distribution per unit to 4.61 cents for the period from July 19 to Dec 31, of which 4.22 cents is taxable and the rest is tax-exempt. This will be paid out on Feb 29.

The trust had earlier distributed income for the period up to July 18, ahead of issuing new units in an equity fund-raising exercise on July 19.

Earnings per unit for the fourth quarter came to 31.53 cents, up from 20.55 cents the previous year.

Net asset value per unit was $1.61 as at Dec 31, from $1.03 a year ago.

For the full year, gross revenue was $90.7 million, almost 60 per cent over pro-forma revenue for the previous year. CDL H-Trust was listed only in July 2006.

Net property income for the year was $85.8 million, 62.9 per cent over the pro-forma figure in 2006.

CDL H-Trust’s distributable income will be $68.7 million for the full year, which works out to 8.98 cents per unit.

The annualised distribution yield is 4.12 per cent as at last Friday’s closing price of $2.18, the trust said.

CDL H-Trust now owns seven hotels, including recent additions Novotel Clarke Quay and Rendezvous Hotel Auckland.

Occupancy rate for all of CDL H-Trust’s hotels stood at an average of 89 per cent in the fourth quarter. The average daily rate for the quarter rose 32 per cent to $216.

In general, Singapore hotels also did well. A record 10.3 million visitors visited Singapore last year, 5.4 per cent more than in 2006.

Upcoming attractions this year, such as the Formula One Grand Prix and the opening of the Singapore Flyer, are expected to keep Singapore’s tourism industry buoyant.

This year, CDL H-Trust will also launch 24 new extended-stay rooms at the Grand Copthorne Waterfront Hotel, which are to be ready between next month and April.