FHT reports DPS of 0.3137 S'pore cts for Q2, down 68.1%

THE distribution per stapled security (DPS) for Frasers Hospitality Trust  (FHT) for the second quarter ended March 31 March fell 68.1 per cent to 0.3137 Singapore cents from a year ago as demand for travel took a significant hit from the Covid-19 pandemic.

Gross revenue shrank 41.5 per cent to S$20.2 million, while net property income dropped 52 per cent to S$12.1 million. Income available for distribution (DI) was 67.2 per cent lower at S$6.1 million. 

Colin Low, chief executive of the trust's managers, said: "As the situation is rapidly evolving, and the duration and severity of the outbreak impact remain uncertain, it is only prudent for us to conserve cash in unprecedented times like this. To tide over this challenging period, we have conservatively retained S$25.3 million or 80 per cent of the DI for H1 FY2020, in anticipation of continued weak operating performance, for critical and mandatory capital commitments and to support Novotel Melbourne on Collins, which has no third-party master lease protection."

The distribution rate for H1 FY2020 thus works out to 0.3287 cents per stapled security after the S$25.3 million retention. The distribution payment date is June 29.

For the six-month period, gross revenue was 16.8 per cent lower at S$62.6 million, while net property income (NPI) slid 19.6 per cent to S$45.3 million. 

The counter closed at 48 Singapore cents on Friday, unchanged.