Frasers Hospitality Trust posts 26.4% rise in H2 DPS to S$0.011777

Frasers : ACV 0% Hospitality Trust’s : ACV 0% (FHT) distribution per stapled security (DPS) rose by 26.4 per cent to S$0.011777 for its second half ended Sep 30, from S$0.009316 in the same period last year.

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 (Nov 7).

Gross revenue was up 17.8 per cent to S$61 million for the half-year period, from S$51.8 million in the year-ago period. Meanwhile, net property income (NPI) grew 19.5 per cent on the year to S$45.3 million for the half year, from S$37.9 million.

Income available for distribution climbed 26.6 per cent year on year to S$25.2 million from S$19.9 million. The distribution will be paid out on Dec 29, after books closure on Nov 16.

The stapled group’s revenue per available room (RevPAR) for its Singapore portfolio grew 35 per cent year on year, surpassing pre-Covid-19 by 18.7 per cent due to strong growth in the average daily rate.

For the full year ended Sep 30, DPS was 49.3 per cent higher on the year at S$0.024426. Distributable income was also up 49.3 per cent at S$47 million, while gross revenue rose 28.5 per cent to S$123.2 million. NPI, meanwhile, was 30.1 per cent higher at S$90.5 million.

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Gearing stood at 34 per cent as at Sep 30, with a weighted average debt to maturity of 2.3 years. The stapled group’s interest coverage ratio improved to 3.6 times from 2.6 times.

FHT’s investment portfolio chalked a 1.7 per cent improvement in valuation at S$1.93 billion by independent valuers as at Sep 30, with nearly all markets recording valuation gains except for Germany. The gains in valuation were partially offset by foreign currency translation losses, the managers said.

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 FY2023 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 such as InterContinental Singapore and Frasers Suites Singapore in its portfolio.

The counter closed 1.9 per cent or S$0.01 lower at S$0.52 on Tuesday.