Far East Hospitality Trust Q1 DPS up 1.1% to 0.94 cent

The performance of the hotel portfolio is expected to balance out the  softer outlook of the serviced residences, according to Gerald Lee, chief executive officer of the Reit's manager.
The performance of the hotel portfolio is expected to balance out the softer outlook of the serviced residences, according to Gerald Lee, chief executive officer of the Reit's manager. PHOTO: THE BUSINESS TIMES

SINGAPORE - Far East Hospitality Trust's (Far East H-Trust) distribution per stapled security (DPS) rose 1.1 per cent to 0.94 Singapore cent for the first quarter in 2018.

Net property income increased 4 per cent to S$23 million, while gross revenue climbed by 3.8 per cent to S$25.72 million.

Income available for distribution was S$17.65 million, a 4.2 per cent rise from the year-ago period.

Far East Hospitality Trust's stapled securities last traded at 68 Singapore cents on Wednesday (April 25).

Revenue per available room for its hotels grew 3.3 per cent to S$139 in the first quarter, while revenue per available unit for its serviced residences grew 7.6 per cent to S$174 for the same period.

Far East H-Trust expects its performace to stabilise, due mainly to improvements in its hotel portfolio.

However, it projects that demand for serviced residences will lag, due to slowing of corporate and relocation activities.

"We started the year on firmer footing, achieving healthy growth in the revenue of our hospitality portfolio. Demand for hotel accommodation was encouraging, from both corporate and leisure segments, and we expect the performance of the hotel portfolio to balance out the softer outlook of the serviced residences," said Gerald Lee, chief executive officer of the Reit's manager.