Frasers Hospitality Trust’s first-half year DPS rises 80% on higher revenue 

FRASERS Hospitality Trust : ACV 0%’s (FHT) distribution per stapled security (DPS) rose 79.7 per cent to S$0.012649 for the first half ended Mar 31, 2023, from S$0.007039 for the previous corresponding period.

Gross revenue grew 41.1 per cent to S$62.2 million for the half-year period, from S$44.1 million the previous year, as travel outlook and demand in FHT’s operating markets continued to recover, its managers said on Friday (Apr 28).

Net property income (NPI) was up 42.9 per cent at S$45.2 million from S$31.7 million.

Excluding contributions from the Sofitel Sydney Wentworth divestment in April 2022, same-store gross revenue and NPI rose 68.1 per cent and 77.3 per cent, respectively.

Income available for distribution stood at S$27.1 million, 79.7 per cent higher than the S$15.1 million the year before.

The distribution will be paid on Jun 28, after the record date on May 9.

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FHT’s managers said the early recovery was led mainly by leisure demand, the gradual resumption of corporate demand and marquee events across different cities. They continue to observe an uptick in demand and performance in certain markets at varying speeds.

In Singapore, FHT’s portfolio average daily rate (ADR) grew 82.7 per cent year on year to S$369, which led to a 105.8 per cent jump in revenue per available room (RevPAR) to S$282. Occupancy stood at 76.3 per cent, up from 68.1 per cent recorded in the year-ago period.

The improved performance was supported by the transient business at InterContinental Singapore and Fraser Suites’ long-stay business, the managers said.

The stapled group’s ADR and RevPAR also improved for its Malaysia, Japan, Australia, Germany and UK portfolios on the back of tourism recovery and a rise in demand for business travel.

As at Mar 31, 2023, gearing stood at 35 per cent, and FHT’s weighted average debt to maturity was 2.1 years. It does not have any loans due until FY2024.

FHT was trading 1.1 per cent or S$0.005 higher at S$0.48 as at the midday trading break.