Hospitality S-Reits set to continue ‘stellar’ run but at slower pace

HOSPITALITY focused Singapore-listed real estate investment trusts (S-Reits) have had a good run in the last year, outperforming S-Reits from other sub-sectors such as retail and healthcare.

The five hospitality trusts listed on the Singapore Exchange (SGX) recorded, on average, 21 per cent year-on-year growth in their distribution per unit (DPU) for FY2023.

For example, ARA US Hospitality Trust declared a distribution per stapled security (DPS) of 3.43 US cents for FY2023, up 12.3 per cent from FY2022. Similarly, CapitaLand Ascott Trust increased its FY2023 DPS by 16 per cent year-on-year to 6.57 Singapore cents.

Comparatively, more than three-quarters of the trusts that disclosed their distribution…