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Far East Hospitality Trust DPU Fall for 4Q 2015

FEHT Logo

Far East Hospitality Trust (“FEHT”) announces its 4Q2015 results on 24th February. Distribution Per Unit (“DPU”) for 4Q2015 fell 8.6% to 1.17. The annualised DPU fell 10.5% to 4.60 centsNet Property Income fell 4.9% as compared to 4Q2014.

Unless tourism picks up, I am expecting the hospitality sector to be soft and DPU to fall further for FEHT.

4Q2015
(S$’000)
4Q2014
(S$ ‘000)
YoY(%)
Gross Revenue 28,851 30,280 (4.7)
Net Property Income 26,289 27,652 (4.9)
Distributable Amount 20,649 22,858 (9.7)
Distribution Per Unit (“DPU”) (cents) 1.17 1.28 (8.6)
Annualised DPU (cents) 4.60 5.14 (10.5)

Occupancy

FEHT 4Q2015 Occupancy

Hotels

The revenue per available room (“RevPAR”) of the hotel portfolio fell 4.4% year-on-year to $146 in 4Q 2015, mainly due to a 7.6% year-on-year decrease in the average daily rate (“ADR”).

Serviced Residences

The revenue per available unit (“RevPAU”) was down by 13.5% year-on-year to $180 in 4Q 2015.

Things to Note

Bleak Tourism Outlook

International visitor arrivals to Singapore was fairly flat with a slight 0.4% increase year-on-year for the first eleven months of 2015.

Biennial and new MICE events in 2016

Hospitality sector may benefit from biennial and new MICE events in 2016. E.g. Singapore Airshow, World Rugby Sevens Series)

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