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CDL Hospitality Q2 income down 4.7%

CDL Hospitality Trusts has booked a 4.7 per cent drop in net income for the second quarter to S$22.6 million.

SINGAPORE: CDL Hospitality Trusts has booked a 4.7 per cent drop in net income for the second quarter to S$22.6 million. Lower rent contributions from its properties in Singapore and Australia hurt the bottom line. CDL Hospitality Trusts owns six hotels in Singapore, including Orchard Hotel and Grand Copthorne.

Correspondingly, distributable income for the quarter fell by 7.7 per cent to S$24.4 million. This works out to 2.5 cents per stapled security, down from 2.72 in the same period a year ago. CDL Hospitality Trusts says the operating environment in Singapore for the first half of this year was challenging - hurt by a drop in tourist arrivals from China, Singapore's second largest inbound market.

However, it is keeping positive on the outlook for the rest of the year, saying that it is seeing some signs of improvement in the current quarter. 

"We do expect that there should be some improvement over the next few months,” said Vincent Yeo, CEO REIT Management, CDL Hospitality Trusts. “Because the declines have just been so sharp, it's clearly an aftermath of the backlash of the MH370 incident; the corporate market has been slower in the second quarter. We do see more activity in the third quarter and our forward bookings are more encouraging for the third quarter.”  

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