CDL Hospitality Trusts’ net income up 12.7% to $34m

And its gross revenue also rose 15.2% to $36.4 million in 3Q 2011.

According to a release, CDL Hospitality Trusts, a stapled group comprising CDL Hospitality Real Estate Investment Trust, a real estate investment trust, and CDL Hospitality Business Trust, a business trust, is pleased to announce its results for the third quarter and nine months ended 30 September 2011.

In 3Q 2011, CDLHT registered gross revenue of S$36.4 million, an increase of S$4.8 million or 15.2% from the previous corresponding quarter (“3Q 2010”). This was attributed to improved hospitality performance across the portfolio and contribution from Studio M Hotel (acquired in 2Q 2011) amounting to approximately S$2.8 million of the gross revenue increase. Net property income for the reporting quarter was S$34.0 million, exceeding the same period last year by S$3.8 million or 12.7%.

Accordingly, income available for distribution (before deducting income retained for working capital) for 3Q 2011 increased 9.9% from 3Q 2010 to S$29.6 million. Income available for distribution per Stapled Security (after deducting income retained for working capital) for 3Q 2011 was 2.77 cents, 9.1% higher than the 2.54 cents recorded in 3Q 2010.

For YTD Sep 2011, CDLHT achieved gross revenue of S$103.3 million, a 16.1% increase from the same period last year (“YTD Sep 2010”), while net property income increased 19.3% from the previous corresponding period to S$99.7 million. The improved operating performance was due to organic growth across both the Singapore and overseas hotel portfolios, a one-off property tax refund of S$3.3 million recognised in 2Q 2011, and contribution from Studio M Hotel. The results were also boosted by the recording of an additional variable income of S$0.84 million (or A$0.65 million) from CDLHT’s Australia hotels, which was recognised upon receipt in 1Q 2011.

In line with the improved operating results, income available for distribution (before deducting income retained for working capital) for YTD Sep 2011 increased 19.2% year-on-year to S$86.6 million. Income available for distribution per Stapled Security (after deducting income retained for working capital) for YTD Sep 2011 was 8.11 cents, 9.2% higher than the 7.43 cents recorded in YTD Sep 2010.

Mr Vincent Yeo, CEO of M&C REIT Management Limited, the Manager of H-REIT, said, “We are pleased to continue posting respectable income growth for 3Q 2011 in the face of uncertainty in the global economy. It is noteworthy that the RevPAR achieved by our Singapore hotels in 3Q 2011 was the second highest recorded in a quarter since the inception of CDLHT.”