This article is from the Australian Property Journal archive
HOTEL Property Investments reported a half-year statutory loss of $7.9 million.
HPI has also declared a final distribution of 9.2 cents per stapled security for the first six months of the financial year. This has come down from 10.2 cents as a result of heightened interest rates.
Total revenue for the company is up 13% to $40 million. This comes as a result of prior acquisitions, rentalised investments in its existing portfolio and an annual average rent increase of 3.7% across the pub portfolio for consistently held assets.
HPI’s adjusted funds from operations decreased by 1% to $19 million.
The key metrics reveal that Hotel Property Investments suffered a fair value loss of $27.2 million while their investment property value sits at $1254.2 million.
Operating revenues and expenses included rental income from investment properties of $35.3 million, property cost recoveries of $4.7 million, property outgoing costs of 6.6 million, management fees and other trust costs of $2.3 million and financing costs of $11.9 million.
The Barron River Hotel in Cairns, QLD was sold by HPI on a passing yield of 4.99% which they reinvested into capital works on existing assets at 7.5%.
HPI re-affirms distribution guidance of 18.4 cents per security for FY23.
