The manager of Far East Hospitality Trust (FEHT) has posted distributable income of $14.7 million for the 1QFY2022 ended March, 17.2% higher y-o-y.
Gross revenue fell 1.6% y-o-y to $21.0 million mainly due to the 9.6% y-o-y decline in revenue for commercial premises at $3.8 million.
FEHT’s revenue for its hotels segment stood flat y-o-y at $14.3 million, while revenue for its serviced residences segment improved by 2.4% y-o-y to $3.0 million.
The lower revenue from its commercial premises segment was due to the divestment of Central Square in March, which resulted in the early termination and non-renewal of leases.
Net property income (NPI) increased 4.5% y-o-y to $19.0 million mainly due to lower property tax and lower expenses for the commercial premises segment.
The higher distributable income for the quarter was mainly due to the lower finance expenses.
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FEHT’s net assets, as at March 31, increased 1.9% y-o-y to $1.68 billion.
Its net asset value (NAV) per stapled security increased by 1.7% y-o-y to $84.6 million.
During the quarter, FEHT saw average occupancy its hotels decline by 8.4 percentage points y-o-y to 67.7% due to the cessation of the government contract for isolation purposes at three of its hotels. The rooms from these hotels were put back onto the market from late December 2021.
The average daily rate (ADR) in the 1QFY2022 increased 31.8% y-o-y to $87 due to a combination of higher corporate and leisure rates.
Consequently, revenue per available room (RevPAR) increased by 15.7% y-o-y to $59.
In its serviced residences segment, FEHT’s average occupancy increased by 11.9 percentage points to 86.6%. According to the trust, support from its long-stay corporate sources help to keep its serviced residences performing above fixed rent.
The segment’s ADR increased by 7.5% y-o-y to $201, while revenue per available unit (RevPAU) increased by 24.3% y-o-y to $174.
The higher average occupancy and ADR were higher due to sustained demand from corporates and project groups.
As at March 31, FEHT reported aggregate leverage of 33.4%. Its total debt stood at $739.3 million with a weighted average debt maturity of 3.1 years. The trust’s available revolving facility stood at $300.0 million.
Units in FEHT closed at 68 cents on April 27.
