Frasers Hospitality Trust sees 26.4% rise in second-half DPS on tourism, Mice boost

SINGAPORE – Frasers Hospitality Trust (FHT) said its distribution per stapled security (DPS) rose by 26.4 per cent to 1.1777 cents for its second half ended Sept 30, from 0.9316 cents in the same period in 2022.

This came as gross revenue and net property income grew, supported by a continued recovery in global tourism and the growing event and Mice (meetings, incentives, conference and exhibitions) segment, the managers said on Tuesday.

Gross revenue was up 17.8 per cent to $61 million for the half-year period, from $51.8 million in the year-ago period.

Meanwhile, net property income (NPI) grew 19.5 per cent year on year to $45.3 million for the half year, from $37.9 million.

Income available for distribution climbed 26.6 per cent year on year to $25.2 million from $19.9 million.

The distribution will be paid out on Dec 29, after books closure on Nov 16.

For the full year ended Sept 30, DPS was 49.3 per cent higher at 2.4426 cents.

Distributable income was also up 49.3 per cent at $47 million, while gross revenue rose 28.5 per cent to $123.2 million.

NPI, meanwhile, was 30.1 per cent higher at $90.5 million.

Mr Eric Gan, chief executive of FHT’s managers, said the continued resurgence in demand for global travel led to a notable improvement in the stapled group’s financial year 2023 results.

“Strong leisure demand, the resumption of Mice, sporting events and concerts as well as increased flight capacity have been key growth drivers across most of our markets,” he noted.

FHT, which is a stapled group comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust, has properties like InterContinental Singapore and Frasers Suites Singapore in its portfolio.

The counter closed one cent, or 1.9 per cent, lower at 52 cents on Tuesday.

THE BUSINESS TIMES