YTL Hospitality REIT's 9-Month Revenue
Grows 69% to RM325 Million
Distributable Income Increases 13% to RM86 Million
Interim Distribution of 2.0804 Sen per Unit Declared

Kuala Lumpur, Tuesday 20 May 2014 — YTL Hospitality REIT achieved revenue of RM324.6 million for the 9 months ended 31 March 2014, an increase of 68.9% compared to RM192.2 million for the same period last year, whilst net property income (NPI) increased 16.9% to RM157.7 million compared to 134.9 million last year. Meanwhile, distributable income grew to RM86.4 million for the 9 months ended 31 March 2014 over RM76.6 million last year, representing an increase of 12.7%.  

Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, Chief Executive Officer of Pintar Projek Sdn Bhd, the manager of YTL Hospitality REIT said, “The REIT registered a strong performance for the 9 months ended 31 March 2014, due mainly to the consolidation of results from the Sydney Harbour, Melbourne and Brisbane Marriott hotels in Australia for the full 9-month period, compared to just 4 months for the same period last year.

“YTL Hospitality REIT completed the acquisition of these 3 prime properties in Australia in November 2012, increasing the size of the property portfolio to just under RM3.0 billion and extending our geographic diversity to cover Malaysia, Japan and Australia. For the 9 months under review, 44.3% of the REIT’s NPI was contributed by the hotels in Malaysia, with the Australian assets contributing 49.3% and the Japan property contributing 6.4%.  

“The REIT declared an interim distribution of 2.0804 sen per unit for the quarter, bringing the total distribution for the 9 months to date to 5.9765 sen per unit, or 7.97 sen per unit on an annualised basis, representing an 8.0% increase over 7.38 sen per unit distributed for the 2013 financial year.”

Overview of financial results

(RM million)

<----- 3 months ended ------>

<----- 9 months ended ------>

31.03.2014

31.03.2013

% change

31.03.2014

31.03.2013

% change

Net revenue

107.4

107.0

0.3

324.6

192.2

68.9

NPI

52.9

67.3

(21.4)

157.7

134.9

16.9

  Income available for distribution

30.6

29.1

5.1

86.4

76.6

12.7

Income distributed

27.6

29.1

(5.4)

79.2

76.6

3.3

Distribution per unit (sen)

2.0804

*

5.9765

3.5873*

*  The Trust changed the frequency of income distributions from half-yearly to quarterly with effect from the financial year ending 30 June 2014. For the 9 months ended 31 March 2013, the gross distribution per unit of 3.5873 sen represented the Trust’s half-yearly income distribution.

Overview of the quarter

For the current financial quarter ended 31 March 2014, revenue of RM107.4 million approximated revenue of RM107.0 million recorded for the same period last year, while NPI of RM52.9 million for the quarter under review represented a decrease of 21.4% compared to RM67.3 million for the previous corresponding quarter ended 31 March 2013.

The decrease in NPI for the current financial quarter was due mainly to the classification of certain property expenses amounting to RM17.2 million as administrative expenses during the preceding corresponding quarter ended 31 March 2013; adjusting for this reclassification, NPI for the quarter ended 31 March 2013 would have been RM50.1 million. Compared with this adjusted NPI of RM50.1 million for the same period last year, the current quarter’s NPI of RM52.9 million represents a 5.6% increase.

Meanwhile, income available for distribution grew to RM30.6 million for the quarter under review, compared to RM29.1 million for the same period last year, representing an increase of 5.1%, after adjustment of non-cash transactions.

Overview of the year to date

For the cumulative 9-month period ended 31 March 2014, YTL Hospitality REIT recorded  revenue and NPI of RM324.6 million and RM157.7 million, respectively, representing an increase of 68.9% and 16.9%, respectively, as compared to RM192.2 million and RM134.9 million, respectively, recorded in the preceding year corresponding period ended 31 March 2013.

The increase in revenue and NPI for the current financial period was due mainly to the recognition of revenue generated by the 3 Marriott hotels in Australia for a full 9 months as compared to 4 months in the preceding year corresponding period ended 31 March 2013. Adjusted for the same factor set out in the overview on the quarter above, the adjusted NPI for the preceding year corresponding period ended 31 March 2013 would have been RM111.8 million. In comparison, the NPI of RM157.7 million recorded for the current financial period represents an increase of 41.1%.

YTL Hospitality REIT’s cumulative income available for distribution increased to RM86.4 for the 9 months ended 31 March 2014 compared to RM76.6 million for the same period last year, representing an increase of 12.7%, after adjustment for non-cash transactions relating mainly to depreciation charges on the Marriott properties in Australia.

Interim distribution

The Board of Directors of Pintar Projek Sdn Bhd, the Manager of YTL Hospitality REIT, declared an interim distribution of 2.0804 sen per unit, the book closure and payment dates for which are 4 June 2014 and 24 June 2014, respectively.

The Trust’s income distribution for the quarter under review amounts to RM27.6 million, representing approximately 90% of the distributable income for the quarter under review, whilst the total cumulative income distribution for the 9 months ended 31 March 2014 is 5.9765 sen per unit, amounting to RM79.2 million, representing approximately 92% of the total distributable income for the 9 months ended 31 March 2014.

Please view the results presentation here.