CDL HOSPITALITY TRUSTS REPORTS RECORD DISTRIBUTIONS PER UNIT OF 5.89 CENTS FOR 1H 2008, UP 52.6% OVER 1H 2007• CDL Hospitality Trusts (“CDLHTâ€) Singapore hotels continue to deliver strong year-on-year (“YoYâ€) Revenue Per Available Room (“RevPARâ€) growth of 30.6% for 2Q 2008 and 34.4% for 1H 2008 against Pro Forma 2007
• Visitor arrivals for 1H 2008 totaled 5.1 million, representing an increase of 2.9% over the same period last year.
• CDL-HT have now demonstrated 8 consecutive quarters of quarter on quarter and year on year RevPAR growth
• Strong 2Q 2008 performance by CDL-HT vs. 2Q 2007
- Gross revenue of $29.5 million - up 42%
- Net property income of $27.7 million - up 42%
- Distributable income per unit of 3.03 cents - up 44%
• Overall, strong 1H 2008 performance by CDL-HT vs. 1H 2007
- Gross revenue of $57.4 million - up 48%
- Net property income of $53.8 million - up 48%
- Distributable income per unit of 5.89 cents - up 53%
• Distribution per unit of 5.89 cents, up 52.6% for 1H 2008, and representing an annualised distribution yield per unit of 8.17% (based on price of $1.45)
Mr Vincent Yeo, CEO of M&C REIT Management Limited, the Manager of H-REIT, said, “Our hotels have performed well in the last two quarters by exhibiting strong room rate growth with a slight increase in occupancies. Although Singapore has not been spared from a slowdown in travel caused by an uncertain global economic environment and higher travel costs due to oil price increases, business volumes remain healthy.â€
Review of Hotels PerformanceCDLHT delivered outstanding RevPAR growth with its Singapore hotels increasing RevPAR by 30.6% for 2Q 2008 and 34.4% for 1H 2008 against Pro Forma 2Q 2007 and 1H 2007 respectively.
In 2Q 2008, the Orchard Hotel Shopping Arcade contributed net property income of S$0.8 million, up 17.1% YoY. Occupancy increased from 92.0% in 2Q 2007 to 93.7% in 2Q 2008 with an average monthly rental rate of approximately S$7.16 per sq. ft. In 1H 2008, the Orchard Hotel Shopping Arcade achieved net property income of S$1.6 million, representing an 18.8% year-on-year increase. Occupancy increased from 92.2% in 1H 2007 to 94.4% in 1H 2008 with an average monthly rental rate of approximately S$7.02 per sq. ft.
Overall positive growth expected for FY2008The Singapore tourism industry registered growth for the months of April and May 2008 with visitor arrivals of 1.65 million, representing growth of 0.8% compared to the same period last year. However, June 2008 saw only 816,000 visitors which represented a 4.1% decline in visitor arrivals over June 2007. For the period January to June 2008, visitor arrivals were 5.1 million representing growth of 2.9% over the same period last year.
Mr Yeo said, “Following over four years of constant growth, we are now seeing a leveling off in Singapore’s visitor arrivals. However, it is noteworthy that the drop in June’s arrival figure is mitigated by the increase in the average length of stay per visitor. Despite economic uncertainty, we are pleased to be able to report a high occupancy rate of 87% in the second quarter. We expect further growth in the third quarter compared to the corresponding period in the previous year.
Mr Yeo added, “This business climate also represents opportunities for us as we are seeing more and more assets being offered for sale. With our low levels of gearing and strong balance sheet, we are well positioned to capitalize on attractive acquisition opportunities as they arise.â€
MISCNAV: $1.61 (Previous $1.58)
Gearing: 20.3% (Previous 19.5%)
Distribution rate: 5.89 cents per unit (5.37¢ of taxable income and 0.52¢ of tax exempt income)
Book closure date: 5.00 pm on 7 August 2008
Date payable: 29 August 2008