CDL HT distributable income jumps 138.5%

Hotels put up strong showing with total revenue at $65m and gross operating profit at $32.4m

CDL Hospitality Trusts (CDL HT) has reported distributable income of $18.8 million for Q3 2007, up 138.5 per cent from $7.9 million a year earlier and 90.8 per cent higher than its projection.

Revenue was $23.97 million, up 112.9 per cent from $11.3 million previously. And distribution per unit was 2.36 cents, up 108.8 per cent from 1.13 cents.

CDL HT said its hotels put up a strong showing.

Average occupancy rates at the Orchard Hotel Singapore, Grand Copthorne Waterfront Hotel Singapore, M Hotel Singapore and Copthorne King’s Hotel Singapore increased 3.9 percentage points from a year earlier to 89.4 per cent, while the average daily rates increased 21.8 per cent to $201. Revenue per available room (RevPAR) rose 27.4 per cent to $179.

The four hotels achieved combined hotel revenue of $56.4 million and a combined gross operating profit of $28.2 million.

Including Novotel Clarke Quay Hotel, which was acquired on June 7 this year, total hotel revenue for Q3 was $65.1 million and gross operating profit $32.4 million.

Combined weighted average RevPAR for the five hotels – including Novotel Clarke Quay Hotel – was $176. The average occupancy rate was 90 per cent.

Vincent Yeo, CEO of M&C REIT Management, manager of CDL HT, said: ‘Even though September’s growth against the previous year was diluted because of the extremely high rates achieved last year due to the one-off International Monetary Fund/World Bank meeting held in Singapore, the third quarter still showed very strong growth rates overall.’

CDL HT said that of the $18.8 million of distributable income, $3.6 million – representing income available for distribution for the period from July 1 to July 18 – has already been distributed. The remaining $15.2 million of income available for distribution will be included in the computation of the next distributable income for the period July 19 to Dec 31.

CDL HT units closed eight cents higher at $2.47 yesterday.

3Q07: DPU up 69% than IPO forecast

3Q revenue higher than IPO forecast by 69% to S$24.0m. The initial portfolio of four Singapore hotels registered strong revenue growth ranging from 25% to 41% yoy. Novotel Clarke Quay, acquired in June 07, made its maiden contribution of $3.8m or 16% of total revenue. In tandem with revenue growth, DPU increased 69% to 2.36 cents than IPO forecast, suggesting annualized yield of 3.92%.

RevPAR grew 27.4% to $179 on same-store basis, driven by increase in both occupancy rate and Average Daily Rate (ADR). Singapore welcomed visitor arrival of 7.6m in the first three quarters, 5.3% growth yoy. Due to tight supply of hotel rooms, the Trusts’ Singapore hotel portfolio enjoyed ADR increment of 20%, in line with industry level. Its occupancy rate was also up 7.1 ppt to 89.9%

The largest hotel owner in Singapore, still with room to grow. All CDL REIT’s assets are close to CBD or Orchard Road, which allows it to cater for both leisure and business travelers. High margin corporate business accounted for 77% of total revenue in ytd 07, up from 71% in 06. Boasting 2324 hotel rooms in Singapore, CDL is set to benefit from booming tourism sector in the Lion City. Its gearing remains low at 23%, with $550m debt capacity for asset acquisition given 45% optimal gearing ratio.

Maintain BUY with earning forecast under review.

CDL Hospitality Trusts’ Q2 earnings beat forecasts

Income available for distribution to holders of stapled securities is $14.8m

CDL Hospitality Trusts (CDL HT) has reported better-than-projected earnings for the second quarter. CDL HT – a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-Reit) and CDL Hospitality Business Trust – said yesterday its income available for distribution to holders of stapled securities amounted to $14.8 million, from April to June this year. That’s 52 per cent higher than the $9.8 million which it projected, in its initial public offering (IPO), that it would earn during the three-month period.

Second-quarter gross revenue was $20.7 million, 48 per cent higher than projected. Its net property income totalled $19.5 million, 52 per cent higher than forecast, and its net income amounted to $18.0 million, more than double the $8.7 million expected.

Its income available for distribution per stapled security came to 2.11 cents for the period – and 8.46 cents on an annualised basis. The total number of stapled securities was 702.4 million. Its annualised distribution yield was 10.19 per cent, based on its IPO price of 83 cents, and 3.69 per cent, based on its closing market price of $2.29 on Monday.

For the entire half-year period from January to June this year, CDL HT reported income available for distribution to holders of stapled securities of $27.1 million – some 40 per cent more than projected. Its revenue was $38.7 million, 38.8 per cent more than IPO projections.

CDL HT listed on the Singapore Exchange on July 19. It now owns five hotels and one shopping arcade in Singapore – Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel, Orchard Hotel Shopping Arcade and Novotel Clarke Quay – as well as one hotel in New Zealand, the Rendezvous Hotel Auckland.

The trust also said it had benefited from the positive growth of the tourism and the hotel sector. Its average occupancy rate in the January-June half was 84.4 per cent, against an indicative 78.6 per cent. Its average daily room rate was $193 for the six months, against an indicative $160.

‘CDL HT has grown and performed very well in the last six months,’ said Vincent Yeo, CEO of M&C Reit Management Limited, manager of H-Reit. ‘As Singapore’s largest hotel operator by number of rooms, we are well-positioned to capitalise on the current growth in the tourism and hotel sectors. In addition to the strong organic growth inherent in our portfolio, we will continue to seek yield-accretive acquisition opportunities to deliver higher returns to our security holders.’

CDL HOSPITALITY TRUSTS REPORTS STRONG GROWTH IN FIRST SIX MONTHS OF FY2007

• Continuing strength in the hospitality market:
• Q2 FY 2007 ARR1 of S$203 and occupancy1 of 84.9%
• 1H FY2007 RevPAR1 increasing 29.4% to S$163 from proforma 1H FY2006
• Income available for distribution of S$27.1 million for 1H FY2007 equivalent to 40% growth against projections
• Cumulative distribution for the period 1 January 2007 to 18 July 2007 to Stapled
  Security Holders as at 18 July 2007 of 4.37 Singapore cents

CDL Hospitality Trusts (“CDLHT”), 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, is pleased to report strong growth for the second quarter and first six months of the financial year ending 31 December 2007 (“FY2007”).

Gross revenue in the quarter ended 30 June 2007 grew by 47.9% over IPO projections. Income available for distribution amounted to S$14.8 million, representing an increase of 52.1% over projections for the quarter.

Gross revenue for the six months ended 30 June 2007 grew by 38.8% over IPO projections. Income available for distribution amounted to S$27.1 million, representing an increase of 39.9% over projected distribution of S$19.4 million for the period. Distribution Per Unit (“DPU”) for the period from 1 January 2007 to 30 June 2007 is 3.86 Singapore cents, an increase of 40.4% over the projected DPU over the same period.

Source : SGX