Far East H-Trust Q4 payout slips to 0.97 cent

Singapore

FAR EAST Hospitality Trust's fourth-quarter distribution per stapled security slipped to 0.97 Singapore cent from 1.12 Singapore cents a year ago amid a slight decline in occupancy rates and revenue from its hotel and serviced apartment segments.

Income available for distribution fell 9.7 per cent to S$18.2 million during the three months ended Dec 31, 2017.

For the three months ended Dec 31, gross revenue shrank 6.6 per cent to S$25.7 million year-on-year, while net property income slipped 7 per cent to S$23.1 million.

For the full 2017, net property income fell 5.3 per cent to S$93.2 million, while gross revenue decreased 4.8 per cent to S$103.8 million and income available for distribution shrank 7.8 per cent to S$72 million. Distribution per stapled security for all of 2017 is 3.90 Singapore cents.

Average occupancy of hotels in the fourth quarter was 85.4 per cent, a 1.1 percentage point decline from the year-ago level.

Meanwhile, the average daily rate (ADR) slipped 1.1 per cent year-on-year despite higher contributions from the leisure segment. Revenue per available room for the hotel portfolio decreased 2.4 per cent to S$132 for the fourth quarter.

In its serviced residence portfolio, average occupancy decreased 1.6 percentage points to 78.2 per cent and ADR was lower by 3.5 per cent at S$213.

"Serviced residences continued to be challenged, although showing an improvement over the first half of 2017. Demand from the corporate segment remained lukewarm, although there was growth from some industries," Far East said.

As a result, revenue per available serviced residence unit decreased 5.5 per cent to S$166.

The stapled security's DPSS is due to be paid on Mar 26, with the books' closure date set on Feb 26.

It has a portfolio of 12 Singapore properties consisting of 8 hotels and 4 serviced residences which include Oasia Hotel Novena and Village Hotel Albert Court.

Far East H-Trust units closed flat on Thursday at S$0.715.