SINGAPORE - Far East Hospitality Trust on Tuesday reported a 4.1 per cent increase in its distribution per stapled security (DPS) for the second quarter, thanks to better performance mainly due to its hotel portfolio.
DPS for the three months ended June 30, 2018 stood at 1.01 cents, compared to 0.97 cent.
Net property income rose 11.2 per cent to $25.7 million, reflecting greater contribution from Oasia Hotel Downtown that has offset softer demand for serviced residences. Oasia Hotel Downtown was the trust's most recent acquisition, and contributed to earnings for the first time this quarter.
The trust added that while there are signs of stabilisation in the hotel sector, the environment remains competitive as companies continue to be cautious with their corporate travel expenditure. It added that its serviced residences, which mainly serve corporations, are expected to experience a continued lag in demand, as corporate and relocation activities remain subdued.
"To ensure the portfolio's competitiveness, the Reit (real estate investment trust) manager will continue to focus on driving the performance of each property, and improving the value of its offerings."