Let’s delve into some essential insights about our financial standing, starting with our basic profile and key statistics.
Key Indicators
To give you a clear picture, we’ve included a detailed image showcasing the fundamental performance indices. Unfortunately, I can’t display it here, but you might want to check it out for a visual representation.
Performance Highlight
Moving on to our performance summary: while our gross revenue and net property income (NPI) remained stable year-over-year, we faced a noteworthy decrease in income available for distribution. The culprits? Higher finance expenses, a decrease in management fees being paid out as units, and a considerably lower retention release compared to the latter half of 2023. Thankfully, we softened the blow on distributions to our stapled security holders and our distribution per stapled security (DPS) by slicing a bigger piece out of proceeds from VRCQ’s divestment.
Revenue per Available Room
For the fiscal year 2024, we’ve seen a positive uptick in our hotels’ revenue per available unit (RevPAR), with a 5.7% increase driven by stronger demand. However, our serviced residences experienced a slight dip of 1.6%.
Related Parties Shareholding
The related parties’ shareholding seems to be in good shape: the REIT sponsor, REIT manager, and directors of the REIT manager all hold favorable stakes.
Lease Profile
The lease profile presents a favorable outlook for the highest annual lease expiry over the next four years, while the weighted average lease expiry (WALE) also remains positive. Nonetheless, the weighted average land lease expiry is somewhat less promising.
Debt Profile
Let’s take a glance at our debt framework: the adjusted interest coverage is moderate, and so is our cost of debt. We’re maintaining a healthy gearing ratio, but our proportion of fixed rate debt could use improvement. The unsecured debt part remains strong, with the highest annual debt maturity in the next four years expected to be favorable, along with a favorable weighted average debt maturity (WADM).
Diversification Profile
Finally, we take a look at our diversification profile. The top geographical weightage is currently less than optimal, indicating room for future diversification strategies.
So there you have it—a snapshot of our current financial standing. Each section paints a part of the larger financial picture, identifying both our strengths and the areas needing attention.
