Eagle Hospitality Trust posted net loss of $12.67m in Q1

The rental receivables from its master lessees in Q1 were fully impaired.

Eagle Hospitality Trust (EHT) recorded a net loss of $12.67m (US$8.89m) in Q1, an announcement revealed. At the same time, net property income (NPI) hit $17.93m (US$12.58m) whilst revenue was at $23.64m (US$16.59m).

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Property expenses were 13.7% higher than projected, mainly due to property tax expenses. Other trust expenses hit $1.99m (US$1.4m), mainly pertaining to legal fees incurred due to the default under its Master Lease Agreements (MLAs).

Impairment loss on trade receivables and non-trade receivables involved rental receivables from master lessees in Q1 that was fully impaired due to uncertainty on the master lessees’ ability to pay, as well as other receivables that were impaired due to uncertainty on the recoverability.

Further, the revenue was 24.4% weaker than the trust had anticipated, mainly due to a decline in revenue per available room (RevPAR) due to travel restrictions and stay-at-home orders implemented in March.

Because of these impairment losses and the uncertainty on the master lessee’s ability to make rental payments and fulfil its obligations under the MLAs, the trust has no income available for distribution for the period.