Singapore-listed CDL Hospitality Trusts (J85) issued profit guidance on Friday night, warning investors of the possibility of a marginal loss after tax for the first half of 2020, according to a statement. 

The REIT said it would record one-off winding down costs arising from the divestment of Novotel Singapore Clarke Quay, which was completed on 15 July 2020.

The company said its total return might register a slight profit excluding these one-off expenses. 

As a result, the REIT’s distribution per stapled security (after retention) for 1H 2020 is expected to decline by 60% to 70% from the 4.16 cents recorded for 1H 2019. 

The trust said it had sufficient liquidity after securing an additional S$100m committed multi-currency revolving credit facility and collecting S$26.8m from the Novotel Singapore Clarke Quay divestment and the acquisition of W Singapore – Sentosa Cove.

Shares in CDL Hospitality Trusts closed 2.94% lower at S$0.99. 

The FTSE ST Real Estate Investment Trusts index finished trading 0.12% higher at 830.27, while the Straits Times Index dipped 0.08% to 2,616.30. 

The biggest S-REIT moves were United Hampshire US REIT (ODBU), which sank 3.51% to S$0.55, and Prime US REIT (OXMU), which jumped 2.61% to S$0.79.

Japan

Advance Residence Investment Corp. (3269) told the market that it should achieve its dividend forecast for the fiscal year ending July 31, 2020 without any problems. 

The REIT made the announcement after the bell on Friday, noting that it had been able to steadily lease-up vacancies by relaxing leasing terms despite seeing a decrease in the number of lease applications.

Despite the disruption from the COVID-19 pandemic, the trust said it maintained the average occupancy rate above the forecast occupancy rate. 

Shares in Advance Residence finished trading 0.29% lower at JPY 340,000.

The Tokyo Stock Exchange REIT index closed 0.27% lower at 1,658.13, while the Nikkei 225 index inched 0.09% higher to 22,717.48.

The largest J-REIT swings were United Urban Investment Corp. (8960) shares, which tumbled 8.93% to JPY 99,900, and Mitsui Fudosan Logistics Park Inc. (3471), which rose 1.96% to JPY 521,000.

Australia

The S&P/ASX 200 A-REIT index decreased 0.36% to 1,215.30, trailing the S&P/ASX 200 index, which dipped 0.53% to 6,001.60. 

Among the A-REITs, Garda Property Group shares fell 3.54% to A$0.96, while Hotel Property Investments (HPI) increased 3.15% to A$2.95.

Hong Kong 

The Hang Seng REIT index slipped 0.43% to 5,519.85, as the Hang Seng index edged 0.12% lower to 25,057.99.

In Hong Kong, Yuexiu REIT (405) shares climbed 0.57% to HK$3.53, as New Century REIT (1275) declined 1.67% to HK$1.18.

Learn more about Asia Pacific REITs:

REITS in AustraliaREITs in Thailand
REITs in JapanREITs in Taiwan
REITs in SingaporeREITs in Korea
REITs in Hong KongREITs in New Zealand
REITs in MalaysiaREITs in India
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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.