FAR East Hospitality Trust’s (FEHT) : Q5T 0% distribution per stapled security (DPS) for the second half (H2) of the financial year ended Dec 31, 2022 rose by 13.1 per cent to S$0.0173, compared with S$0.0153 in the same period last year.

On Tuesday (Feb 14), the trust’s manager declared a distribution of S$34.4 million for H2 FY2022, up 13.8 per cent year on year from S$30.3 million. 

The distribution will be paid out on Mar 22, after books closure on Feb 22.

The higher DPS was boosted by higher net property income, lower finance expenses and the sharing of divestment gains.

Gross revenue was up 2.2 per cent to S$42.6 million for the half-year period, from S$41.7 million a year ago.

Net property income (NPI) also grew 2.3 per cent on year to S$39.9 million for the half year, from S$39 million previously.

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This was due to improved operational performance and a positive recovery outlook for the hospitality sector, the stapled group said.

Following Singapore’s easing of border measures in April 2022, the hotel portfolio experienced healthy demand from corporate groups and improved pickup from travellers. The group also renewed contracts with the government for isolation purposes at higher rates.

Despite a fall in average occupancy by 2 percentage points to 79.1 per cent as some hotels exited government contracts at end-2021, average daily rate (ADR) for the half year rose by 98.6 per cent to S$147 from S$74.

Revenue per available room grew 93.3 per cent to S$116 in H2 2022, from S$60 in the corresponding year-ago period.

The serviced residences segment recorded an increase in average occupancy for the half year, rising 7.7 percentage points to 86.5 per cent in H2 2022 from 78.8 per cent in H2 2021.

ADR increased 34.8 per cent to S$244 from S$181, while revenue per available unit rose to S$211, up 47.6 per cent from S$143.

The trust attributed this growth to tight supply and the continued inflow of professionals and project groups.

As for its retail and office spaces, revenue fell 2.2 per cent year on year to S$7.5 million in H2 FY2022 from S$7.7 million, due to the divestment of Central Square, which contained 21.3 per cent of FEHT’s commercial spaces.

Total income available for distribution also declined 8.5 per cent year on year to S$30.2 million, from S$33 million for the half-year period.

For the full year ended Dec 31, DPS was higher by 24.3 per cent at S$0.0327, versus S$0.0263 a year ago. Total income available for distribution grew 7.5 per cent to S$59 million from S$54.8 million.

Gross revenue grew by 0.4 per cent to S$83.6 million from S$83.2 million, while NPI rose 2.9 per cent to S$77.3 million from S$75.2 million for the full year.

Gerald Lee, chief executive of the trust’s manager, said the trust will continue to seek yield accretive acquisitions to further enhance FEHT’s existing portfolio.

FEHT comprises Far East Hospitality Real Estate Investment Trust and Far East Hospitality Business Trust.

Stapled securities of FEHT ended S$0.005 or 0.75 per cent higher on Tuesday at S$0.67.