OUE Hospitality Trust released its 2Q2018 financial results on 27th July 2018. The results are extremely poor. In short, gross revenue, net property income and distribution per unit (“DPU”) are in a sea of red. Gross revenue for 2Q2018 was $0.4 million lower than 2Q2017. Both hospitality segment and retail segment posted lower revenue for the current period. NPI for 2Q2018 was $0.1 million lower than 2Q2017 due to lower gross revenue from the properties, partially mitigated by lower property expenses. The distribution per unit (“DPU”) for 2Q2018 was 1.17 cents, 3.3% lower as compared to 1.21 cents for 2Q2017.
RevPAR for Mandarin Orchard Singapore (MOS) fell 0.5% from S$210 to S$209. RevPAR for Crowne Plaza Changi Airport (CPCA) increased 10.5% from S$152 to S$168, however the master lease income from CPCA had remained the same as 2Q2017 at minimum rent and thus has no positive impact on OUE Hospitality Trust’s financial performance. Read More