All properties operate under a master lease agreement, with rental based on a fixed component and a variable component linked to the property's operational revenue. Its sponsor is Far East Organization, which is the largest private property developer in Singapore.
PhilipCapital analyst Liu Miao Miao has initiated a “buy” call on Far East Hospitality Trust (SGX:Q5T
) (FEHT) with a target price of 79 cents. The analyst’s target price is based on a dividend discount model (DDM), cost of equity (COE) capital of 6.5% and terminal growth of 1.5%.
FEHT is a hospitality stapled trust with a portfolio that’s 100% based in Singapore. The REIT has an asset value of $2.5 billion as of December 2022, with a portfolio encompassing 12 properties, including nine hotels and three serviced residences which collectively make up 3,015 hotel rooms. Beyond this, it also has a total of 177 units of office and retail space in eight of its properties.
