Frasers Hospitality Trust (FHT) has reported a distribution per stapled security (DPS) of 2.4426 cents for the FY2023 ended Sept 30, 49.3% higher y-o-y. FHT’s DPS for the 2HFY2023 rose by 26.4% y-o-y to 1.1777 cents.
The higher DPS, which stood in tandem with the higher gross revenue and net property income (NPI), was attributed to the continued recovery in global tourism and meetings, incentives, conferences and exhibitions (MICE) segments in various cities.
For the 2HFY2023, FHT’s gross revenue rose by 17.8% y-o-y to $61.0 million while NPI grew by 19.5% y-o-y to $45.3 million. Both were due to the significant improvements in the operating environment during the six-month period compared to the same period a year ago. Excluding the contribution from Sofitel Sydney Wentworth which was divested in April 2022, the same-store gross revenue and NPI were 25.3% and 29.4% higher y-o-y and they reached 88.9% and 90.5% of the pre-Covid-19 levels respectively.
Income available for distribution for the 2HFY2023 was up by 26.6% y-o-y to $25.2 million while distribution to stapled securityholders, which is based on 90% payout of the income available for distribution, rose by 26.4% y-o-y to $22.7 million.
FY2023 gross revenue rose by 28.5% y-o-y to $123.2 million while NPI was up by 30.1% y-o-y to $90.5 million. Excluding the contribution from Sofitel Sydney Wentworth, the same-store gross revenue and NPI were 43.8% and 49.8% higher y-o-y and they reached 90.4% and 91.1% of the pre-Covid-19 levels respectively.
FY2023 income available for distribution rose by 49.4% y-o-y to $52.3 million while distribution to stapled securityholders grew by 49.3% y-o-y to $47.0 million.
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During the 2HFY2023, FHT’s Singapore portfolio saw revenue per available room (RevPAR) increase by 35.0% y-o-y to $305 while its average daily rate (ADR) rose by 25.5% y-o-y to $393. Occupancy was up by 5.4 percentage points y-o-y to 78%. The better operating metrics were due to the continued recovery of the Singapore tourism sector further supported by the return of marquee events such as the Formula One Grand Prix.
FHT’s Australian portfolio reported a RevPAR of A$197 ($172.64), 22.5% higher y-o-y while ADR rose by 0.7% y-o-y to A$243. Occupancy increased by 14.4 percentage points y-o-y to 81%. The Australian portfolio saw a recovery in corporate and group segments. A strong events calendar in Sydney and Melbourne also helped with the operating metrics although this was offset by softened demand from the domestic transient segment due to inflation and rising interest rates.
In the UK, FHT’s RevPAR rose by 15.7% y-o-y to GBP137 ($228.49). ADR increased by 11.6% y-o-y to GBP168. Occupancy grew by 2.9 percentage points y-o-y to 82%. According to FHT, further recovery was impeded in the UK as energy, food and payroll costs remained high.
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Japan’s RevPAR increased by 76.7% y-o-y to 11,477 yen ($103.41) while ADR increased by 34.8% y-o-y to 15,818 yen. Occupancy stood 17.2 percentage points higher y-o-y at 73%. That said, in Japan, the pace of recovery was hindered by the shortage of labour in the tourism industry and inflationary pressures.
In Malaysia, RevPAR rose by 72.8% y-o-y to RM423 ($122.81) while ADR rose by 14.0% y-o-y to RM520. Occupancy stood 27.7 percentage points higher y-o-y at 81%. The country is targeting for 16.1 million foreign tourists in 2023.
No figures were given for the German portfolio although it was said that its performance also surpassed pre-Covid-19 levels, like the rest of FHT’s geographies except Japan, driven by stronger ADR growth. In 2HFY2023, the Maritim Hotel Dresden reported y-o-y growth of 20.6% and 16.6% in gross operating revenue and gross operating profit respectively.
As at Sept 30, FHT’s total portfolio valuation rose by 1.7% y-o-y to $1.93 billion due mainly to valuation gains across its geographies. Net asset value (NAV) per stapled security stood at 66.4 cents.
Total gearing stood at 34.0% while interest coverage ratio (ICR) stood at 3.6x.
Cash and cash equivalents as at Sept 30 stood at $88.1 million.
“The continued resurgence in demand for global travel has led to a notable improvement in our FY2023 results. Strong leisure demand, the resumption of MICE, sporting events and concerts as well as increased flight capacity have been key growth drivers across most of our markets,” says Eric Gan, CEO of the managers.
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“As such, RevPAR growth was achieved across all country portfolios in FY2023. In addition, RevPAR of all country portfolios have surpassed pre-Covid levels since 9M FY2023, except Japan. It is gratifying to see that our improved performance has led to a healthy uplift in both DPS and NAV per stapled security,” he adds. “Nonetheless, we remain cautious with ongoing uncertainties arising from among other things, global economic outlook, geopolitical tensions, volatility in foreign exchange and higher-for-longer interest rate environment.”
The DPS will be paid out on Dec 29.
As at 9.07am, units in FHT are trading 1 cent lower or 1.89% down at 52 cents.
