Hotel Property Investments (ASX:HPI) has released its financial results for the six months ending 31 December 2022, seeing the impacts of rising interest rates.
HPI lodged its H1 FY23 interim report, declaring a statutory loss of $7.9 million, and final distribution of 9.2 cents per stapled security.
Highlights of the announcement include a rise in total revenue of 13.0 per cent, from $35.4 to $40.0 million, for the same corresponding period. This is said to reflect the full effect of prior acquisitions, and annual average rent increase of 3.7 per cent across the portfolio.
The WALE (Weighted Average Lease Expiry) is at 10.3 years.
During the period HPI sold the Barron River Hotel, in Cairns, on a passing yield of
4.99 per cent. Proceeds were reinvested into capital works, although the Distribution Reinvestment Plan (DRP) was suspended for the December 2022 distribution.
HPI’s portfolio is valued at $1.254 billion, reflecting an average Cap Rate of 5.33 per cent. Proportion of debt remains fixed at 46.8 per cent.
The latter six months of 2022 saw HPI generate a loss after tax of $7.9 million, leading to the distribution for the period of 9.2 cents. The reduction is attributed to the impact of increased interest rates.
The company’s distribution guidance for the full year of FY23 remains unchanged, at 18.4 cents per security.
