Frasers Hospitality Trust sees Q3 distributable income rise

Third-quarter distributable income at Frasers Hospitality Trust (FHT) rose 11.3 per cent to $20.9 million, boosted by the addition of Sofitel Sydney Wentworth and Maritim Hotel Dresden, which made its maiden contribution in the quarter.

But these factors were partially offset by a weaker performance at InterContinental Singapore and at the London properties following concerns over terrorism and Brexit.

Distribution per stapled security (DPS) was 1.51 cents for the three months ended June 30, down from 1.56 cents a year earlier. The reason was an enlarged number of stapled securities, which increased from 1.21 billion to 1.39 billion over the period.

Gross revenue rose 33.9 per cent to $31.7 million while net property income was up 40.5 per cent at $27 million.

The Australian portfolio saw a higher average daily rate and stable occupancy. Revenue surged 153.9 per cent and operating profit 131.3 per cent, largely from the addition of Sofitel Sydney Wentworth.

The Singapore portfolio posted revenue growth of 5.3 per cent and operating profit growth of 8.7 per cent, given the return of full room inventory at InterContinental Singapore, which had been under renovation and is not yet back to optimal performance. Fraser Suites Singapore reported lower revenue per available room amid weakness from oil and gas accounts.

In Britain, revenue fell 1.2 per cent and operating profit slid 4.2 per cent. Operating profit was also affected by a rise in the minimum wage from April 1.

In Japan, ANA Crowne Plaza Kobe reported a 1.3 per cent dip in revenue but better expense control kept the fall in operating profit to 0.7 per cent.

Net asset value per stapled security was 79.97 cents at June 30, down from 86.36 cents at Sept 30.

The trust's units closed unchanged at 78.5 cents last Friday.

A version of this article appeared in the print edition of The Straits Times on August 01, 2016, with the headline 'Frasers Hospitality Trust sees Q3 distributable income rise'. Print Edition | Subscribe