MANAGERS of Far East Hospitality Trust : Q5T 0% (FEHT) on Wednesday (Oct 25) reported a 51 per cent rise in distributable income for the third quarter ended September – to S$22.9 million from S$15.1 million in the same quarter a year ago. 

Gross revenue for Q3 surged 42.5 per cent to S$30.2 million from S$21.2 million a year prior. This was led by strong contributions from the hotel segment, which recorded a 56.3 per cent increase in revenue to S$23.3 million from S$14.9 million.

As the hotel segment benefited from rising international visitor arrivals into Singapore over the quarter, average occupancy for the hotel portfolio grew 10.6 percentage points to 86.7 per cent from 76.1 per cent. Average daily rates rose 26 per cent year on year to S$173 from S$137.

This translated to a 43.6 per cent improvement in revenue per available room (RevPAR) to S$150 from S$105 in the same quarter a year ago. It also exceeded pre-pandemic levels when FY2019’s RevPAR was S$142.  

The stapled group’s serviced residences and commercial premises segments reported revenue growth for the quarter, posting on-year growth of 14.4 per cent to S$2.9 million and 6.5 per cent to S$3.9 million, respectively.

FHET’s net property income for Q3 correspondingly rose 42.4 per cent to S$28.1 million from S$19.7 million in the previous year.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

For the year to date (YTD) ending September 2023, gross revenue grew 32.2 per cent on the year to S$82.2 million from S$62.2 million, while net property income rose 34.8 per cent to S$77.1 million from S$57.2 million in the previous comparative period.

Excluding Central Square – which was divested in March 2022 – revenue from the serviced residence segment would have increased 18.9 per cent instead of 6.6 per cent. Revenue contributions from the commercial premises segments would have been up 15.5 per cent rather than the 9.5 per cent year-on-year growth reported.

The stapled group’s managers estimated an indicative distribution per stapled security (DPS) of S$0.0304 as at end-September 2023, comprising an indicative DPS of S$0.0112 for Q3 in addition to FEHT’s H1 DPS of S$0.0192. 

The overall YTD indicative figure represents a progressive recovery in DPS and forms about 80 per cent of FY2019’s DPS, said the managers.

Citing industry projections for a continued recovery across the travel, events and hospitality sectors, they expect FEHT’s properties to achieve higher variable rents.

Stapled securities of FEHT closed flat at S$0.565 on Tuesday.