SINGAPORE (Jan 24): The managers of Frasers Hospitality Trust (FHT), a stapled group comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust, has posted distribution per stapled security (DPS) of 1.3107 cents for the 1Q ended December, down 1.1% from 1.3258 cents a year ago.
Income available for distribution held steady at $24.4 million in 1Q18, but DPS was lower due to a higher stapled security base, which increased by 1.1% to 1.86 billion.
Gross revenue rose 4.8% to $41.5 million in 1Q18, from $39.6 million a year ago.
The higher revenue was led by higher contributions from room revenue and food & beverage revenue, partially offset by a 1% dip in master lease rental.
Property operating expenses grew 10.6% to $10.0 million in 1Q18, from $9.0 million a year ago, mainly due to higher operations and maintenance expenses as well as staff costs.
Consequently, net property income (NPI) was 3.1% higher at $31.4 million in 1Q18, from $30.5 million a year ago.
In 1Q18, FHT’s Australia portfolio recorded a 3.7% and 4.9% increase in gross operating revenue (GOR) and gross operating profit (GOP) respectively, led by contributions from Novotel Melbourne on Collins.
FHT’s Singapore portfolio reported GOR and GOP growth of 1.7% and 4.5%, respectively. InterContinental Singapore achieved higher revenue per available room (RevPAR) on the back of average daily rate (ADR) and occupancy gains as well as higher F&B outlet revenue.
The UK portfolio saw its GOR and GOP decline 1.1% and 4.0% respectively in 1Q18, largely due to overall weaker room revenue as well as an increase in staff costs due to higher minimum wage rates.
Cash and cash equivalents stood at $64.0 million.
“Underpinned by our income diversification strategy, our first quarter performance has been resilient,” says Eu Chin Fen, CEO of the managers.
“With our balance sheet strength and low gearing at 33%, we remain well-positioned to pursue accretive acquisitions for growth and asset enhancement initiatives to unlock value for our stapled securityholders,” she adds.
Unit of Frasers Hospitality Trust closed half a cent higher at 82 cents on Wednesday.
