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Far East H-Trust reports 17.7% drop in DPS for Q1 to 1.07 Singapore cents
FAR East Hospitality Trust (H-Trust) posted a 17.7 per cent slide in distribution per stapled security (DPS) to 1.07 Singapore cents for the first quarter ended March 31, 2015, as travel demand weakened.
Income available for distribution was 16.9 per cent lower at S$19.2 million for the quarter under review.
Meanwhile, gross revenue for the quarter was 10.8 per cent lower year on year at S$27.37 million, while net property income clocked a 11.3 per cent decrease at S$24.49 million.
Gerald Lee, chief executive of the Reit's manager said: "The hospitality industry experienced softer demand as a result of the fall in international visitor arrivals this quarter. The sluggish economic environment has affected corporate travel, while the strong Singapore dollar has slowed arrivals from regional markets."
However, he went on to add that major sporting and MICE events slated for this year, as well as new upcoming attractions, may help bolster demand.
Its hotels saw a one percentage point slide in average occupancy year on year to 82.3 per cent, while the average daily rate (ADR) was down nearly 10 per cent at S$171. This resulted in an 11 per cent drop in revenue per available room (RevPar) to S$141.
For the serviced residences, occupancy was down 1.5 percentage points to 85.8 per cent, against a 5.5 per cent drop in ADR to S$240. RevPar was also lower by 7.1 per cent to S$206.
But revenue from its excluded commercial premises rose 2.5 per cent to S$5.9 million.