FAR East Hospitality Trust’s : Q5T 0% (FEHT) distribution per stapled security for the first half ended Jun 30 rose 24.7 per cent to S$0.0192, from S$0.0154 the year before.

Distribution to stapled securityholders grew 25.6 per cent year on year to S$38.4 million. This came on the back of higher net property income (NPI), and the distribution of other gains from the trust’s recent divestment of Central Square, its manager said on Friday (Jul 28).

It was also during the first half when the Singapore-focused hotel and serviced residence hospitality trust received an additional payment of S$18 million as an incentive fee for its Central Square divestment.

FEHT’s NPI over the second quarter rose 37.2 per cent to S$25.3 million from S$18.4 million in Q2 FY2022, while gross revenue grew 34.1 per cent year on year to S$26.9 million from S$20 million.

The latest quarter’s top-line growth was mainly led by higher contributions from the hotel segment, resulting in a 34.4 per cent year-on-year increase in income available for distribution to S$19.2 million.

Over H1, gross revenue was up 26.9 per cent to S$52 million as the hotel segment’s contributions grew 35.4 per cent to S$38.6 million. NPI for H1 rose 30.7 per cent year on year to S$49 million.

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Revenue contributions from serviced residences rose 2.8 per cent, while those from commercial premises were up 11 per cent. FEHT’s manager noted that the growth would have been 21.5 per cent and 20.4 per cent respectively excluding the March 2022 divestment of Central Square.

Gerald Lee, chief executive of the manager, said gross revenue from the Reit’s existing hotels and serviced residences have now recovered to above pre-Covid levels in H1 FY2019.

Average daily rates (ADRs) rose 71.4 per cent in the hotel segment to S$169 from S$99 in H1 FY2022, and 23 per cent for serviced residences to S$253 from S$206 previously.

This was largely attributed to good demand from corporate groups and further recovery in leisure bookings. Hotels on government contracts were also contracted at higher rates than in H1 2022. Coupled with increased average occupancy, hotel revenue per available room grew 96.9 per cent year on year to S$133. 

Though there was a 0.2 percentage point dip in average occupancy in serviced residences for the latest half-year period, revenue per available unit in this segment grew 22.8 per cent on the year to S$224.

“With further restoration in flight capacity of major carriers in the Asia-Pacific and recovery of visitor arrivals into Singapore, supported by a healthy pipeline of events and activities, the portfolio can be expected to benefit from the rebound in the local hospitality sector,” said Lee.

Stapled securities of FEHT closed Friday 1.6 per cent or S$0.01 lower at S$0.635.