Far East Hospitality Trust DPS up 6.8% to S$0.011 in H1

Q5T (FEHT) distribution per stapled security (DPS) rose 6.8 per cent to 1.10 Singapore cents for the half year ended June 30, 2021, compared to 1.03 cents for the year-ago period.

Gross revenue for H1 was S$41.6 million, 6.1 per cent lower than a year ago at S$44.3 million, the trust said in a bourse filing on Friday.

Chief executive of the Reit manager Gerald Lee noted that 81 per cent of gross revenue for the period is protected by the fixed rent component of the master leases, which provides downside protection for stapled security holders with its minimum rental payment.

FEHT's manager also noted that revenue per available unit for serviced residences fell by 16.9 per cent year-on-year to S$138, even as it performed above the fixed rent level, while revenue for the real estate investment trust's (Reit) retail and office spaces also decreased by 23.2 per cent from a year ago to S$7.4 million.

H1 net property income (NPI) also eased 6.2 per cent year-on-year to S$36.2 million, from S$38.6 million a year ago.

Total distributable income fell by 1.4 per cent to S$25.3 million from S$25.7 million.

The manager said that despite the fall in gross revenue and NPI, total distributable income only fell marginally due to savings of 16.9 per cent in finance expenses and 3.9 per cent in Reit manager fees.

The distribution will be paid out on Sept 7 after book closure on Aug 10.

Looking ahead, the manager said near-term business will continue to be supported by government and long-stay corporate contracts as new Covid-19 variants dampen recovery in Singapore's hospitality industry.

"We remain sanguine about the prospects of international travel arrangements materialising in the months ahead. This is backed by the multi-ministry task force's assurance that Singapore will progressively facilitate international travel with countries that have done well in managing the Covid-19 situation," the manager said.

Regarding its Central Square development, the manager said that it will continue to explore different options for the site. Earlier, it announced that it had received an outline advice from the Urban Redevelopment Authority (URA).

Subject to approvals from URA and other authorities, the outline advice was issued under an incentive scheme, and involves a potential rezoning and uplift in gross floor area.

Stapled securities of FEHT closed flat at S$0.58 on Friday.

READ MORE:

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