OUE Hospitality Trust's net property income up 2.5% to $29.6m in Q4

Thanks to higher master lease income and lower property expenses.

OUE Hospitality Trust, a stapled group comprising OUE Hospitality Real Estate Investment Trust (OUE H-REIT) and OUE Hospitality Business Trust (OUE H-BT), registered a 2.5% increase in net property income for 4Q16 to $29.6m. This came as its revenue rose 0.7% to $33.2m.

According to the group, the higher revenue is attributable to the higher contribution from the enlarged 563-room Crowne Plaza Changi Airport (CPCA) as the 243-room extension to CPCA was acquired in August last year. On the other hand, the improvement in net property income was due to higher master lease income from the hospitality segment and lower property expenses recorded for the retail segment.

Meanwhile, it achieved a distributable income of $24m for the said period, up 5.3% last year. OUE Hospitality REIT Management CEO Chong Kee Hiong said this is the result of higher income from the hospitality segment, partially offset by lower contribution from the retail segment.

“The higher income from the hospitality segment is attributable to additional income from the enlarged CPCA as OUE H-Trust completed the acquisition of its 243-room extension on 1 August 2016. Master lease income from Mandarin Orchard Singapore (MOS) was lower as corporate demand remained weak, resulting in lower RevPAR of $220 in 4Q2016 compared to $236 in 4Q2015. Though room sales were down, food & beverage (F&B) sales was a bright spot for MOS as the hotel’s F&B outlets enjoyed higher patronage during the period,” Chong said.