Far East H-Trust's Q2 performance hit by weak travel demand

SINGAPORE - A fall in business and leisure travel weighed on the performance of Far East Hospitality Trust (Far East H-Trust) in the second quarter, the trust's manager said on Tuesday.

The trust's income available for distribution dipped 4.9 per cent in the three months ended June 30 over the previous year to $22.1 million, while net property income slipped 1.3 per cent to $26.6 million.

Revenue inched up 1 per cent in the quarter over the year before to $29.6 million.

The trust is paying 1.24 cents per stapled security, 13.3 per cent less than a year ago, partly due to an enlarged base of securities after issuing 148.3 million new stapled securities to pay for the acquisition of Rendezvous Hotel Singapore and Rendezvous Gallery on Aug 1 last year.

"The occupancies at our hotels and serviced residences were affected by the weak macroeconomic environment and adverse factors impacting leisure travel in the second quarter," said Mr Gerald Lee, chief executive of the Reit manager.

But he added: "We believe that the renovation of our properties will place us in a better position to weather the near term challenges of the operating environment."

The Reit has completed its refurbishment of 136 rooms at Village Hotel Albert Court has been completed, and expects to finish the asset enhancement works for Village Hotel Changi and Regency House in the coming months.