CDLH Trust

CDLH Trust: 2Q12 results. Gross revenue at $36.6m, +6% yoy, driven by a 5.9% growth in RevPAR for the Spore Hotels and recognition of a full quarter’s revenue contribution from Studio M Hotel (91 days in 2Q12, vs 59 days in 2Q11). Occupancy generally stayed robust, on the back of strong growth in Spore visitor arrivals of 12.3% yoy for 5M12. Net property income at $34.1m, -4.2% yoy, due to a one-off property tax refund of $3.3m in 2Q11. DPU at 2.92cts, -1.4% yoy. Translates to 5.7% annualized yield. Gearing maintained at a healthy 25.2%, which positions CDLH for further expansion in the hospitality sector over the next 12 mths. In terms of AEI, CDLH also undertook renovations at Novotel Spore Clarke Quay Level 5 function and meeting rooms during the quarter. At Copthorne King’s Hotel, existing retail space on level 2 was converted in 323 sm of pre-function and function/meeting space. The trust trades at 1.3x P/B. As CDLH Trust pays distributions semi annually, 1H12 distribution to be paid is 5.17 cts, +4.2% yoy.