No Recovery In Sight Yet Based On OUE Hospitality 3Q2018 Financial Results

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It was another quarter of disappointing financial results for OUE Hospitality Trust. On 7th November 2018, OUE Hospitality Trust announced their 3Q2018 financial results. Despite claims of increasing tourists arrival to Singapore, the financial results was a sea of red.

Net Property Income (“NPI”) for 3Q2018 was $0.4 million lower than 3Q2017 due to lower gross revenue from the properties. Distributable income in 3Q2018 was S$1.3 million lower than in 3Q2017, and Distribution Per Share (“DPS”) for 3Q2018 was 1.28 cents, 5.9% lower than 3Q2017. The manager attributed the lower distribution to mainly the absence of income support for Crowne Plaza Changi
Airport (“CPCA”). Read More

What To Invest Now?

Previously, I wrote about re-investing the money I gotten from the sale of Suntec REIT. This puts me in a dilemma as I do not know which REIT in my stock portfolio should I increase my position. Thus, the best way to find out is to compare their current dividend yield for better decision making.

The minimum criteria for my next REIT selection is that the current dividend yield should be better than Suntec REIT which currently yields 5.21% based on the current price of S$1.92.

From the below table that I have tabulated, ParkwayLife REIT is definitely out of the game as it current gives a dividend yield of 4.93%. I have also eliminated CapitaMall Trust as its dividend yield is 5.26% which is very much close to Suntec REIT’s dividend yield of 5.21%.

I have also eliminated OUE Hospitality Trust due to its poor 2Q2018 financial results. (Read more: OUE Hospitality Trust 2Q2018 Financial Results – Still Awaiting The Jewel) Read More

OUE Hospitality Trust 2Q2018 Financial Results – Still Awaiting The Jewel

OUE Hospitality Trust Logo

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