REITs post up to 5% RevPAR growth in Q2


Guess which firm was the best performer.

Singapore's real estate investment trusts (REITs) recorded resilient revenue per available room (RevPAR) in the past quarter.

REITs under OCBC Investment Research's coverage recorded RevPAR growths ranging from -1.4% to +5% YoY.

Analyst Deborah Ong said one of the best performers was the OUE Hospitality Trust, whose Mandarin Orchard Singapore made a strong recovery from its low base last year.

Meanwhile, CDL Hospitality Trusts’ and Far East Hospitality Trust’s hotel portfolios both recorded minimal declines YoY.

This brings overall 2Q17 distribution per unit (DPU) growth for these REITs lingering around 13.6% to +31.5% YoY.

"On one end of the spectrum, Ascott Residence Trust DPU had been negatively affected by the larger unit base after its rights issue, with the contribution from Ascott Orchard Singapore only expected to come in Oct," Ong explained.

She furthered, "On the other end, OUEHT’s strong DPU growth was fed by stronger contributions from Mandarin Gallery as well as the maiden contribution from the expanded Crowne Plaza Changi Airport, which was only acquired in Aug 2016."

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