Far East Hospitality Trust (FEHT) has reported a distributable income of $22.9 million for the 3QFY2023 ended Sept 30, 51.0% higher y-o-y.
3QFY2023 gross revenue rose by 42.5% y-o-y to $30.2 million on the back of broad-based growth across its segments. The trust’s hotels segment, in particular, saw its gross revenue for the quarter surge by 56.3% y-o-y to $23.3 million. Gross revenue for serviced apartments rose by 14.4% y-o-y to $2.9 million while commercial premises saw gross revenue increase by 6.5% y-o-y to $3.9 million.
Net property income (NPI) for the three-month period rose by 42.4% y-o-y to $28.1 million.
For the 9MFY2023, distributable income increased by 36.7% y-o-y to $60.3 million. For the same period, FEHT notes that its indicative distribution per stapled security (DPS) of 3.04 cents formed 80% of its FY2019 DPS. In FY2019, FEHT’s operating DPS stood at 3.81 cents.
9MFY2023 gross revenue rose by 32.2% y-o-y to $82.2 million while NPI increased by 34.8% y-o-y to $77.1 million.
Excluding Central Square which was divested on March 24, 2022, the 9MFY2023 revenues of serviced residences and commercial premises would have increased by 18.9% and 15.5% y-o-y respectively compared to the current y-o-y growths of 6.6% and 9.5% respectively.
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For the 3QFY2023, FEHT’s hotels portfolio saw an average occupancy of 86.7%, 10.6 percentage points higher y-o-y. Its average daily rate (ADR) rose by 26.0% y-o-y to $173. Revenue per available room (RevPAR) surged by 43.6% y-o-y to $150. The higher metrics were attributed to the higher number of international visitor arrivals into Singapore during the period.
Average occupancy for serviced residences for the 3QFY2023 fell by 1.7 percentage points y-o-y to 88.7%. ADR rose by 14.4% y-o-y to $269 while revenue per available unit (RevPAU) rose by 12.2% y-o-y to $239.
As at Sept 30, the trust’s net asset value (NAV) per stapled security stood at 89.5 cents. Aggregate leverage stood at 32.2%, making FEHT one of the lowest geared Singapore REITs (S-REITs).
Cash and cash equivalents stood at $47.3 million as at Sept 30.
Units in FEHT closed flat at 56.5 cents on Oct 24.
