CDL Hospitality Trust weighed down by weakening Australian economy and currency

Drag will persist in coming months.

CDL Hospitality Trust reported a decline in 3Q13 revenue and net property income, part of which came from a slack in Australia contribution following a slide in economic activity and a decline in the Australian dollar's value against the Singapore dollar.

"The slowing Australian economy and mining sector affected the performance of the hotels in Brisbane and Perth, with the drag expected to continue for the near term," said OCBC in a company update following the release of the trust's 3Q13 results.

The plunging Australian dollar also hurt the company. Fixed rate contribution from the Australian hotels was S$3.9m, down rouhgly 11% from the S$4.4m in 3Q12, due to the weakening of the Australian dollar versus the Singapore dollar, added OCBC.