KUALA LUMPUR (Aug 1): YTL Hospitality Real Estate Investment Trust (KL:YTLREIT) reported a 9.7% increase in net property income (NPI) for its fourth quarter ended June 30, 2024 (4QFY2024), rising to RM65.8 million from RM59.9 million a year earlier, driven by higher contributions from both the hotel and property rental segments.

Quarterly revenue grew 10.7% year-on-year to RM130.2 million from RM117.6 million, according to the REIT's filing.

YTL REIT's income available for distribution during the quarter slid 1.11% to RM42.23 million from RM42.7 million previously.

The REIT declared a final income distribution of 4.09 sen per unit for the second half of FY2024 to be paid on Aug 30. This brings the total FY2024 distribution to 8.27 sen per unit, up 11.2% from FY2023's 7.44 sen.

The REIT reported a 14.36% increase in hotel segment management contract NPI, rising to RM22.2 million from RM19.4 million a year earlier, due to improved room and occupancy rates driven by increased international arrivals and events in Sydney and Brisbane.

Property rental NPI grew 7.54% to RM43.6 million from RM40.5 million, boosted by rental income from Hotel Stripes Kuala Lumpur and higher lease payments from JW Marriott Hotel's renewed agreement.

For the full year, YTL REIT's NPI increased 15.2% to RM289.5 million from RM251.3 million in FY2023, with cumulative revenue growing 13.98% to RM554.9 million from RM486.8 million.

Looking ahead, YTL REIT expects the hospitality industry to remain positive as conditions normalise and interest rate hikes ease, despite geopolitical and economic risks.

"The group is continuously taking steps to proactively manage the business and safeguard its long-term prospects while delivering strong performance. Despite short-term challenges, the manager remains confident in the long-term outlook for the hospitality sector," it added.

YTL REIT units closed one sen, or 0.8%, lower at RM1.22 on Thursday, giving the REIT a market capitalisation of RM2.08 billion.