OUE Hospitality Trust's NPI up 3.8% to $29.5m

Thanks to income from Crowne Plaza Changi Airport for saving this quarter's figures.

OUE Hospitality Trust's (OUEHT) delivered exciting results in Q3 as net property income (NPI) rose 3.8% YoY to $29.5m whilst distributable income jumped 10.9% to $24.7m.

According to OCBC Investment Research, revenue increased 5.4% YoY to $34.0m, mainly supported by stronger contributions from OUEHT's Hospitality segment. Retail revenue was 0.8% higher mainly due to the higher average occupancy.

If it weren't for the income from Crowne Plaza Changi Airport (CPCA) received last quarter, the distributable income would have been 6.4% lower.

OCBC Investment Research said the ramp-up at CPCA is proceeding healthily, with occupancy increasing from the 60% range when the extension first opened to the 80% range now seen in Q3.

The property's revenue per available room (RevPAR) has also risen 22% from $147 last year to $180.

OCBC analyst Deborah Ong said, "As expected, OUEHT has drawn down the full income support for CPCA this quarter."

RevPAR growth continued at Mandarin Orchard Singapore (MOS) with an 8% YoY increase to $242.

Banquet and food & beverage (F&B) sales also contributed to higher master lease income.

Distribution per unit (DPU) jumped 10.6% YoY to 1.36 cents.