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 cents. Net 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
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)