Far East Hospitality Trust H1 DPS declines 8.4% to S$0.0163

[SINGAPORE] The managers of Far East Hospitality Trust (FEHT) on Thursday (Jul 30) posted a distribution per stapled security (DPS) of S$0.0163 for its first half ended Jun 30, down 8.4 per cent on the year from S$0.0178.

This is because the prior-year period included distribution of other gains from the divestment of Central Square.

The distribution will be paid on Aug 28.

Distributable income for the period stood at S$33.7 million, up 8.9 per cent year on year from S$30.9 million, mainly due to lower finance expenses arising from lower borrowing costs.

Gross revenue was at S$53.8 million for H1, a rise of 4.3 per cent from S$51.6 million a year prior.

Net property income stood at S$45.4 million for the period, down 0.6 per cent from S$45.6 million.

Notably, FEHT’s Singapore hotels segment revenue declined 2.7 per cent on the year to S$34.8 million, from S$35.8 million.

Its Japan hotel segment revenue, however, more than doubled to S$4.5 million in H1 on the year, from S$1.6 million, after the acquisition of Four Points by Sheraton Nagoya on Apr 25, 2025.

This helped its overall hotel segment revenue for the period rise 5.1 per cent year on year to S$39.3 million, from S$37.4 million.

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Serviced residences revenue also cushioned the softer contribution from Singapore hotels, up 6.8 per cent to reach S$5.3 million for the period, from S$5 million in the same year-ago period.

As at Jun 30, aggregate leverage was 32.8 per cent, with an average cost of debt of 2.3 per cent. The interest coverage ratio was at 4.3 times.

Weighted average debt maturity was at 3.5 years.

Geopolitical tensions and global economic uncertainty are expected to continue weighing on travel demand in the near term, said the managers.

“Nevertheless, Singapore’s hospitality sector is supported by a pipeline of major leisure, entertainment and Mice-related events in the second half of 2026, including the Formula 1 Singapore Grand Prix in October and the four-night BTS concert series in December,” said the managers in the bourse filing.

Stapled securities of FEHT closed unchanged on Wednesday at S$0.59.