Brokers' take

Far East Hospitality Trust | Buy Aug 13 close: S$0.635 Target price: S$0.69 OCBC Investment Research, Aug 13

Since our Aug 1 downgrade (from "buy" to "hold") till Aug 10's close, Far East Hospitality Trust's (FEHT) unit price has dropped 10.1 per cent.

On Aug 2, the Competition and Consumer Commission of Singapore (CCCS) issued a Proposed Infringement Decision (PID) against the business owners/operators of four hotels, including FEHT's Village Hotel Changi, for exchanging sensitive corporate customer information. The PID named the master lessee of Village Hotel Changi as well as the operator appointed by the master lessee of the hotel. FEHT has since clarified that neither the trustee nor the reit manager nor the reit itself has been named by the PID. We expect the impact on FEHT to be minor at most.