Higher payouts from S'pore's hotel Reits as demand recovers

1 week ago 26

SINGAPORE - Shareholders of Singapore's three listed hospitality real estate investment trusts (Reits) will enjoy higher dividend payouts on the back of a recovery in travel this earnings season.

Ascott Residence Trust, CDL Hospitality Trust and Far East Hospitality Trust have posted impressive first half results, thanks to a surge in travel demand.

Ascott, which is a unit of the Capitaland group, last week unveiled a 14 per cent rise in distribution per stapled security (known more commonly as dividend per share or DPS) to 2.33 cents for the first half ending June 30, up 14 per cent from the year before.

Meanwhile, CDL's first half DPS jumped 67.2 per cent as strong leisure demand saw occupancy rates at its numerous hotels rise.

The company declared a first half dividend of 2.04 cents, compared to 1.22 cents a year ago as leasure demand accelerated particularly strongly after the April border reopenings.

As its hotels in Singapore, United Kingdom and Maldives filled up, net property income collectively grew by 37.8 per cent for the half year to end-June.

It is a similar story for Far East Hospitality Trust, whose first half DPS surged 40 per cent to 1.54 cents per unit, compared to 1.1 cents during the first half of 2021.

Boosting the dividend payout cache to $30.6 milllion was also divestment gains from the sale of its properties at Village Residence Clarke Quay.

Although gross first half revenue slid 1.4 per cent to $41.6 million, from $41 million a year earlier due to the diverstment, net property income for the group grew 3.5 per cent to $37.5 million.

What is particularly encouraging is the strong growth in occupancy and topline revenue for three Singapore-listed hospitality Reits.

Ascotts properties in France and the UK have outperformed pre-pandemic levels, while revenue outlook in other markets like Japan and China look strong.

During a recent interview with The Straits Times, chief executive Kevin Goh highlighted that the group also has a growing stable of rental housing and student accomodation.

He said the group plans to incease its asset allocation into longer stay and more ...

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