Far East Hospitality Trust Q3 net property income up 6.3% at S$27.6 million

[SINGAPORE] Far East Hospitality Trust (FEHT) on Thursday (Oct 29) posted a 6.3 per cent rise in its Q3 net property income (NPI) to S$27.6 million, from S$25.9 million the previous year.

The group attributed this rise to higher gross revenue, which stood at S$32.6 million, up 7.2 per cent from S$30.4 million in the year-ago period.

The increase in revenue was mainly driven by stronger performance at Four Points by Sheraton Nagoya, which was supported by demand from the Asian Games 2026. Four Points by Sheraton Nagoya was one of the contracted hotels for the event.

FEHT’s hotel portfolio’s gross revenue increased 9.2 per cent to S$25 million, from S$22.9 million previously.

Within its hotel portfolio, Japan’s hotel revenue rose 71.7 per cent to S$4.6 million, up from S$2.7 million the prior year.

Revenue per available room for its Japanese hotel portfolio rose 48.7 per cent to 12,502 yen (US$79), from 8,409 yen the previous year.

The manager’s Singapore hotels’ revenue grew 0.9 per cent to S$20.4 million, from S$20.2 million the year before.

“Singapore’s tourism demand remained soft in Q3 2026, with visitor arrivals and visitor days declining 1.8 per cent and 5.1 per cent year on year, respectively,” noted the real estate investment trust (Reit) manager.

Revenue per available room for the manager’s Singapore portfolio stood at S$148, unchanged from the previous year.

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The serviced residence portfolio revenue grew 5 per cent to S$3 million, from S$2.9 million the previous year, while revenue from commercial premises and other income dipped 1.2 per cent to S$4.5 million, from S$4.6 million previously.

Finance expenses declined 16 per cent year on year, mainly due to lower average cost of debt.

As at Sep 30, average cost of debt declined to 2.3 per cent, from 3.2 per cent previously.

Together with higher NPI, the lower finance expenses contributed to a 6.3 per cent increase in income available for distribution to S$20.2 million, from S$19 million the previous year.

Aggregate leverage stood at 33.2 per cent, while total debt stood at S$781.5 million.

The Reit manager expects its portfolio to benefit from increased business travel, meetings, incentives, conferences and exhibitions, as well as events.

Some events highlighted by the manager of FEHT include the recently concluded Formula 1 Singapore Grand Prix, as well as the upcoming BTS world tour in December.

“Singapore continues to appeal as a stable and trusted base for companies amidst ongoing geopolitical uncertainty,” noted the Reit manager.

Units of FEHT closed 1 per cent or S$0.005 higher at S$0.50 on Wednesday.