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(5)
CDLHT commenced a new lease with Millennium & Copthorne Hotels New Zealand Limited on 7 September 2016 and the hotel was rebranded
as Grand Millennium Auckland.
(6)
Distribution from the Japan Hotels occurs twice yearly, at six months intervals (contribution from 1 October to 31 March will be distributed in 2Q
and that of 1 April to 30 September in 4Q). Additionally, there was also a capital distribution of S$4.1 million from the Japan Hotels in FY2016
(FY 2015: S$1.1 million), which included a one-off consumption tax refund of S$2.5 million relating to the acquisition of these hotels.
(7)
At the time of acquisition on the UK Hotel by HBT Group on 1 October 2015, the fair value of the assets acquired and liabilities assumed were
determined on a provisional basis. Following the completion of the review in 2016 of the provisional amounts recognised previously, the fair
value was restated (to reflect finalised amounts) in accordance with FRS 103 Business Combination. The restatement does not have any impact
on the distribution of CDLHT.
(8)
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. Refer to Page 115 of the Financial Statements for details relating to the operating expenses.
REVIEW OF FINANCIAL PERFORMANCE
CDLHT achieved a 4.9% increase in gross revenue to S$180.9 million in FY 2016, primarily due to the recognition
of a full year’s hotel revenue of S$21.4 million from Hilton Cambridge City Centre, which was acquired in October
2015; and a S$3.6 million increase in revenue contribution from Grand Millennium Auckland to S$13.3 million as a
result of stronger underlying hotel performance and higher variable rental income
(5)
. The higher rental income for this
hotel was also due to the rebranding and commencement of the new lease in September 2016 which contained a
more significant variable rent component. Revenue contribution from Claymore Connect and the Japan Hotels also
saw an increase of S$1.7 million and S$0.8 million respectively. These improvements mitigated the weaker trading
performance from the Singapore Hotels and Maldives Resorts, which declined by S$7.7 million and S$4.6 million yoy
respectively, while the Australia Hotels registered lower rent contribution by S$0.8 million mainly due to negative
currency translation and smaller variable rental income.
Accordingly, total NPI for FY 2016 increased by S$0.6 million to S$137.6 million. The combined increase of S$9.8
million in NPI from Hilton Cambridge City Centre and Grand Millennium Auckland was offset largely by the decline of
S$9.7 million from the Singapore Hotels and Maldives Resorts.
Total distribution
(6)
to Stapled Security Holders (after retention for working capital) for FY 2016 was largely unchanged
at S$99.1 million. Accordingly, DPS for FY 2016 was 10.00 cents as compared to the 10.06 cents recorded in FY 2015.
CDLHT revalued its investment properties as at 31 December 2016 and recorded a net fair value loss of S$21.6 million
for FY 2016. The fair value loss mainly arose from its Singapore and Maldives properties but was partially offset by a fair
value gain on its New Zealand and Australia properties. In addition, there was an impairment charge of S$8.1 million
to non-current assets. Both the revaluation and impairment charge have no impact on the distribution.
Operating Expenses
FY 2016
FY 2015
(7)
Total Operating Expenses
(8)
(S$’000)
108,888
90,624
Net Asset Value (S$’000)
1,546,421
1,565,819
Total Operating Expenses as a Percentage of Net Asset Value
7.0%
5.8%
21
Annual Report 2016
OVERVIEW AND
FINANCIAL REVIEW