Far East Hospitality Trust reports 12% higher distributable income of $15.1 mil for 3QFY2022

FEHT's NAV per stapled security increased by 1.7% q-o-q to 84.6 cents as at Sept 30.

Far East Hospitality Trust (FEHT) has reported gross revenue of $21.2 million for the 3QFY2022 ended Sept 30, 2.0% higher y-o-y.

The growth in gross revenue was due to the growth in the trust’s hotels segment, which increased by 4.7% y-o-y to $14.9 million. It was, however, offset by the decline in revenue from its serviced residences segment and commercial premises segment, which fell 3.1% and 4.3% y-o-y to $2.6 million and $3.7 million respectively.

The lower revenues in both the serviced residences and commercial premises segments was due to the divestment of Central Square, which was completed on March 24. Excluding Central Square, revenue for the two segments would have grown 44.9% and 19.1% y-o-y respectively.

FEHT’s net property income (NPI) for the 3QFY2022 rose 7.8% y-o-y to $19.7 million on the back of lower finance expenses and REIT manager’s fees.

The quarter’s distributable income rose 12.0% y-o-y to $15.1 million due to the higher gross revenue and NPI.

For the 9MFY2022, gross revenue fell by 0.2% y-o-y to $62.2 million mainly due to the divestment of Central Square.

NPI for the nine-month period rose 4.9% y-o-y to $57.2 million.

Distributable income for the 9MFY2022 rose 13.5% y-o-y to $44.1 million.

In the hotels segment, average occupancy for the 3QFY2022 fell 3.1 percentage points y-o-y to 76.1% mainly due to the exit of some of the REIT’s hotels from the government contracts for Covid-19. The Elizabeth Hotel was also closed for renovation in February. It re-opened as Vibe Hotel Singapore Orchard in early September.

The hotels’ average daily rate (ADR) surged 107.6% y-o-y to $137. During the quarter, revenue per available room (RevPAR) also surged by 101.9% y-o-y to $105.

In the 9MFY2022, average occupancy for hotels fell by 7.4 percentage points y-o-y to 70.8%. ADR for the nine-month period increased by 71.2% y-o-y to $113 while RevPar increased by 53.8% y-o-y to $80.

During the 3QFY2022, serviced residences increased by 18.6 percentage points y-o-y to 90.4%. ADR during the quarter rose 32.4% y-o-y to $235. As a result, revenue per available unit (RevPAU) rose 66.7% y-o-y to $213.

Excluding Village Residence Clarke Quay, which was part of the divested Central Square, average occupancy, ADR and RevPAU would have increased 12.1 percentage points, 24.4% and 43.7% respectively.

In the 9MFY2022, average occupancy for serviced residences increased by 14.3 percentage points to 90.2% while ADR increased by 19.4% y-o-y to $217. RevPAU increased by 42.2% y-o-y to $196.

As at Sept 30, FEHT’s aggregate leverage stood at 33.5% with an interest coverage ratio of 4.0x.

Net asset value (NAV) per stapled security increased by 1.7% q-o-q to 84.6 cents as at Sept 30.

Units in FEHT closed at 56.5 cents on Oct 26.

See Also:

• Click here to stay updated with the Latest Business & Investment News in Singapore

• UOB posts record high earnings of $1.4 bil in 3QFY2022, up 34% y-o-y

• Sheng Siong reports 4.5% y-o-y dip in 3QFY2022 net profit of $32.9 mil

• Keppel Corp reports 9MFY2022 revenue of $6.84 bil, up by 24% y-o-y

• Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World

• Get in-depth insights from our expert contributors, and dive into financial and economic trends

• Follow the market issue situation with our daily updates

• Or want more Lifestyle and Passion stories? Click here