Far East Hospitality Trust (FEHT) Q5T has reported gross revenue of $25.2 million for the 1QFY2023 ended March 31, 20.1% higher y-o-y. The higher gross revenue was mainly thanks to the increase in revenue for hotels and commercial premises to a lesser extent and offset by lower revenue from its serviced residences segment.
Revenue for hotels increased by 29.6% y-o-y to $18.5 million while revenue for commercial premises rose by 5.9% y-o-y to $4.0 million. Revenue for serviced residences fell by 7.8% y-o-y to $2.7 million.
Excluding Central Square and rental rebates provided to tenants in 1QFY2022, revenue for the serviced residences and commercial premises segment would have grown 27.0% and 17.9% year-on-year respectively.
Net property income (NPI) for the quarter rose by 24.4% y-o-y to $23.7 million.
Income available for distribution rose by 24.1% y-o-y to $18.2 million.
Average occupancy for FEHT’s hotel portfolio rose by 14.2 percentage points y-o-y to 81.9%. Average daily rate (ADR) rose by 89.3% y-o-y to $165. Revenue per available room (RevPAR) surged by 129.2% y-o-y to $135. The higher figures stemmed from the robust demand from leisure travellers. The newly rebranded Vibe Hotel Singapore Orchard and higher contracted rates for remaining hotels contracted to the government also lifted FEHT’s hotel ADR. During the quarter, eight out of nine properties in the hotel portfolio performed above the fixed rent level.
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In serviced residences, average occupancy rose by 0.5 percentage points y-o-y to 87.1%. Without Village Residence Clarke Quay (VRCQ) which was divested in March 2022, average occupancy fell by 2.4 percentage points y-o-y. The segment’s ADR rose by 27.8% y-o-y and 26.1% (without VRCQ) to $257. Revenue per available unit (RevPAU) rose by 28.4% y-o-y and 22.7% y-o-y (without VRCQ) to $224.
As at March 31, FEHT’s net asset value (NAV) per stapled security fell by 0.4% q-o-q to 89.8 cents. Its aggregate leverage stood at 32.0% with an interest coverage ratio of 3.6x.
Looking ahead, FEHT is upbeat on its prospects from the recovery of travel.
As at 10.03am, units in FEHT are trading 1 cent higher or 1.64% up at 62 cents.
