REVIEW OF FINANCIAL PERFORMANCE
CDLHT achieved a 3.4% increase in gross revenue to S$172.4 million in FY 2015, primarily due to the recognition of a
full year’s hotel revenue of S$9.7 million from the Japan Hotels
(4)
as well as new contribution of S$6.1 million from Hilton
Cambridge City Centre (formerly known as Cambridge City Hotel) which was acquired in October 2015.
Net property income for FY 2015 decreased by 2.5% to S$137.0 million. Contributions from Singapore properties and Maldives
Resorts declined S$6.0 million and S$2.9 million respectively as a result of the softer trading environment. The Australia Hotels
and New Zealand Hotel recorded lower rents of S$1.6 million and S$0.6 million respectively due to local currency weakness
against the Singapore dollar. Inorganic contributions of S$5.2 million from Japan Hotels and S$2.3 million from the recently
acquired UK Hotel have mitigated the weaker performance from other markets in the portfolio.
During the year, the H-REIT Manager converted some of the borrowings into longer tenor fixed-rate loans in anticipation of
further interest rate rises. This exercise, coupled with additional borrowings to fund its acquisition as well as the general rise in
floating rates, have led to incremental interest expenses.
The total distribution (after deducting income retained for working capital and including capital distribution
(5)
) for FY 2015
was S$99.2 million. Accordingly, total distribution per Stapled Security for FY 2015 was 10.06 cents, compared to 10.98
cents the year before.
CDLHT revalued its investment properties as at 31 December 2015 and recorded a net fair value loss of S$30.2 million.
The fair value loss arose mainly from its Singapore, Australia and Maldives properties but was mitigated by a fair value gain
on its New Zealand Hotel. The net fair value loss had no impact on unitholders’ distribution.
Operating Expenses
FY 2015
FY 2014
Total Operating Expenses
(6)
(S$’000)
82,849
60,570
Net Asset Value (S$’000)
1,573,364
1,616,127
Total Operating Expenses as a Percentage of Net Asset Value
5.3%
3.7%
HOTELS PERFORMANCE FOR FY 2015
Singapore
The Singapore Hotels faced headwinds from subdued corporate travel demand amidst a slower global economic environment.
The ongoing refurbishments at M Hotel and Grand Copthorne Waterfront Hotel also had some impact on the occupancy
level. Notswithstanding the challenging operating environment, the Singapore Hotels posted a healthy occupancy rate of
87.7% in FY 2015. Room rates were under pressure due to increased price competition from new and refurbished hotels.
Consequently, RevPAR in FY 2015 registered a decline of 6.9%.
CDLHT’s Singapore Hotels Performance
FY 2015
FY 2014 Variance
Average Occupancy Rate
87.7%
89.1% -1.4pp
Average Daily Rate
S$199
S$210
-5.2%
RevPAR
S$175
S$188
-6.9%
(4)
Acquisition of the Japan Hotels was completed on 19 December 2014. Contribution from the Japan Hotels for FY 2015 includes the last 13 days
of 2014.
(5)
The capital distribution refers to a S$1.1 million remittance from the Japan Hotels.
(6)
Refers to all operating expenses (including property taxes and insurance) and all fees and charges (including acquisition fees) paid to the Managers
and interested parties in FY 2015. Refer to Page 110 of the Financial Statement for details relating to the operating expenses.
OVERVIEW AND FINANCIAL REVIEW
OVERVIEW AND
FINANCIAL REVIEW
19
Annual Report 2015
