SINGAPORE (Feb 22): The manager of Far East Hospitality Trust (FEHT) reported a 4Q Distribution per Stapled Security (DPS) of 1.12 cents, 4.3% lower than a year ago.
Quarterly gross revenue came in 4.6% lower at $27.5 million. Net property income fell 5.4% to $24.9 million while income available for distribution fell 2.3% to $20.2 million.
For FY16, gross revenue came in at $109.1 million and net property income was $98.4 million. Income available for distribution was $78.1 million, which translated into a DPS of of 4.33 cents, 5.9% lower compared to the 4.60 cents a year ago.
Both the quarterly and yearly results were affected by lower rates in the hotel sector and supply pressure and soft corporate demand in the serviced residence sector.
In 4Q, revenue contribution from hotels was lower year-on-year due mainly to the continued softness in corporate travel demand amidst the global economic uncertainties.
The hotel portfolio’s average daily rate (ADR) declined by 8.6% year-on-year, while average occupancy increased 1.2ppt.
The increase in the hotel supply further heightened the competition, which led to a compression in room rates.
On the serviced residences (SRs) front, although Regency House enjoyed an increase in revenue from the corporate segment after its renovation, the FEHT’s manager said demand from the corporate segment remained soft for the SR portfolio as a whole, with revenue per available unit (RevPAU) of the SR portfolio declining 2.3% year-on-year to $176 in 4Q.
The REIT manager says it will continue to implement measures to improve the competitiveness of its portfolio.
FEHT closed 1 cent lower at 59 cents.
