Far East H-Trust's Q3 DPU falls below forecast

Singapore

FACED with stronger-than-expected price pressure on room rates, Far East Hospitality Trust (Far East H-Trust) posted a distribution per stapled security (DPS) of 1.41 cents for the third quarter ended September, falling short of its forecast of 1.53 cents by 7.8 per cent. This was on the back of income available for distribution missing its forecast of $26.1 million by 7.4 per cent, at $24.2 million.

"Q3 2013 continued to be a challenging quarter as the hotels were affected by industry-wide price competition. The hospitality sector also felt the impact of a stronger Singapore dollar, which resulted in fewer bookings from some key tourist markets, as well as subdued business travel spending," said Gerald Lee, chief executive officer of the Reit's manager.