Gross revenue grew 5.4% to $34.0 million in 3Q17, led by a 7.1% increase in revenue from its hospitality segment to $25.4 million.
The higher hospitality revenue was due to higher master lease income from both Mandarin Orchard Singapore (MOS) and Crowne Plaza Changi Airport (CPCA).
Master lease income from CPCA was 33.6% higher at $16.9 million in 3Q17, mainly due to an enlarged room inventory with the addition of 243 rooms. The Crowne Plaza extension opened for business in August 2016, and has seen its occupancy rates rise from the 60% range to the 80% range in 3Q17.
Revenue from OUE HT’s retail segment, which pertains to rental and other income from Mandarin Gallery shopping mall, also improved marginally to $8.6 million during the quarter.
The increase in revenue is attributable to higher average occupancy rate of 96.4% in 3Q17, compared to 89.0% a year ago.
Net property income rose 3.8% to $29.5 million in 3Q17, from $28.4 million a year ago.
As at end September, cash and cash equivalents stood at $28.7 million.
“OUE H-Trust has again achieved higher DPS for stapled securityholders in 3Q2017,” says Lee Yi Shyan, chairman of the manager. “The robust performance year-to-date is attributable to higher income from both the hospitality and retail segments.”
Chong Kee Hiong, CEO of the REIT manager, notes that Mandarin Gallery shopping mall achieved higher rental revenue despite a challenging retail environment. “The significant increase in operating tenants has rejuvenated the tenant mix of the mall,” he adds.
Looking ahead, the manager of OUE HT says it will adopt a pro-active and prudent approach to maintaining its financial strength and flexibility, as well as continue to actively seek growth opportunities and yield accretive acquisitions from its sponsor and third parties.
Units of OUE Hospitality Trust closed half a cent higher at 81 cents on Wednesday.
