Far East Hospitality Trust yesterday reported a 4.3 per cent decline in distribution per stapled security (DPS) to 1.12 cents for its fourth quarter ended Dec 31, compared to 1.17 cents a year ago.
This came as revenue for the quarter dropped 4.6 per cent to $27.5 million, due to lower contributions from hotels and serviced residences, and its retail and office spaces.
Hotel revenue declined mainly due to the continued softness in corporate travel demand amid the global economic uncertainties, said the Reit's manager.
The increase in hotel supply further heightened the competition, which led to a compression in room rates, they said. Consequently, the hotel portfolio's revenue per available room fell 7.3 per cent on year to $136.
For its serviced residences business, although Regency House enjoyed an increase in revenue from the corporate segment after its renovation, overall demand from the corporate segment remained soft.
AT A GLANCE
REVENUE: $27.5 million (-4.6%)
NET PROPERTY INCOME: $24.9 million (-5.4%)
DISTRIBUTION PER SECURITY: 1.12 cents (-4.3%)
The revenue per available unit for the quarter dipped 2.3 per cent on year to $176. Net property income for the quarter declined 5.4 per cent to $24.9 million. For the full year, DPS fell 5.9 per cent to 4.33 cents as revenue dropped 4.9 per cent to $109.1 million.
The Reit manager said it plans to refurbish the guest rooms at Orchard Parade Hotel this year, as part of the property's third phase of renovation. Orchard Parade Hotel's reception, lobby, lobby bar, swimming pool, pool deck, gym and function rooms were renovated last year.
Chief executive officer of the Reit manager Gerald Lee said: "We will continue to implement strategies to capture a higher share of corporate bookings, while progressively upgrading our properties to improve their competitiveness and relevance to the needs of the travellers."
On the stock market, Far East Hospitality units ended half a cent higher at 59.5 cents.