You are here
Far East H-Trust's Q3 DPS down 1% to 1.04 S cents on enlarged base
FAR East Hospitality Trust’s (Far East H-Trust) distribution per stapled security (DPS) fell by 1 per cent to 1.04 Singapore cents for the third quarter ended Sept 30 from 1.05 cents a year ago.
This was due to an enlarged base that was largely a result of the implementation of the distribution reinvestment plan in the last three quarters, the hospitality stapled group said in a bourse filing on Wednesday morning.
Income available for distribution rose 1.5 per cent year on year to S$20.4 million, from S$20.1 million.
Gross revenue was up 1.2 per cent to S$30.9 million for the quarter, from S$30.5 million a year ago. The increase in revenue contribution came from all three components of the portfolio: hotels, serviced residences and commercial spaces.
The hotel portfolio saw improved performance due to stronger traffic this year during the peak leisure travel season. Meanwhile, the serviced residences recorded a growth in shorter-stay bookings at higher room rates in the quarter.
Net property income grew 1.3 per cent on the year to S$28.1 million for the quarter, from S$27.7 million.
The distribution will be paid out on Dec 12, after books closure on Nov 7.
Gerald Lee, chief executive officer of the Reit (real estate investment trust) manager, said: “We achieved an improved performance this quarter for our hotels and serviced residences, after experiencing weakness in the first half of the year.”
“Despite facing relatively softer corporate demand amidst a weakened macroeconomic environment, we remain positive about the prospects of the hospitality sector.”
“The plans by the Singapore government to further develop major tourist attractions and the more moderate pace of new hotel room supply over the next few years will offer opportunities for strengthening the performance of our portfolio,” Mr Lee added.
Stapled securities of Far East H-Trust closed one Singapore cent or 1.4 per cent lower at S$0.70 on Tuesday.
Far East H-Trust is a Singapore-focused hotel and services residence stapled group comprising Far East Hospitality Real Estate Investment Trust and Far East Hospitality Business Trust.