Far East Hospitality Trust DPU Rises for 1Q2016

Far East Hospitality Trust Logo

On 27th April 2016, Far East Hospitality Trust announces its 1Q2016 financial results. Gross revenue remains flat at S$27.4 million. Net property income increase slightly by 0.8% from S$24.5 million to S$24.7 million. A Distribution Per Unit (“DPU”) of 1.08 cents was declared which is a 0.9% increase as compared to 1.07 cents in 1Q2015.

The slight 1.9% increase in distribution amount was due to the slight increase in tourist arrivals in the first two months of the year.

1Q2016
(S$’000)
1Q2015
(S$’000)
YoY(%)
Gross Revenue27,36527,3650
Net Property Income24,67924,4870.8
Distributable Amount19,44419,2031.3
Distribution Per Unit (“DPU”) (cents)1.081.070.9

Occupancy

Far East Hospitality Trust Occupancy 1Q2016

Hotels

Singapore held the biennial Singapore Airshow earlier this year which provided some uplift. However, the hospitality sector still appears weak due to lack of corporate demand. Revenue per available room (“RevPAR”) was flat at S$141.

Serviced Residences

Revenue per available room (“RevPAR”) for serviced residences fell 8.7% to S$188. This was due to weaker demand as well.

Debt Maturity Profile

$50 million of Far East H-Trust’s floating-rate debt was hedged, increasing the proportion of debt secured at fixed interest rates to 65% from 59%. The current weighted average debt to maturity is 3 years.

Catalyst

Personally, my opinion for the catalyst of Far East Hospitality Trust will be the increase in international visitor arrivals. More international events held in Singapore can boost international visitor arrivals.

Keeping Track of 1st Quarter 2016 Financial Results

Golden-Egg-255x300

Below are the REITS I currently hold in my portfolio. Most of them will be announcing their 1st Quarter 2016 financial results. To keep track of the date of release of the 1st quarter 2016 financial results, I have decided to track them using the table below.

So far, only CapitaMall Trust have reported an increase in DPU. Keppel Reit and Soilbuild Business Reit have reported a fall in DPU.

Stock Name

Date Of Release

Of

1st Quarter 2016 Financial Results

Dividend Per Unit (DPU)

Increase or Fall

Frasers Commercial TrustWednesday, 20 January 2016DPU Increase
CapitaMall TrustFriday, 15 April 2016DPU Increase
Keppel ReitThursday, 14 April 2016DPU Fall
Soilbuild Business ReitThursday, 14 April 2016DPU Fall
Suntec REITThursday, 21 April 2016 Pending
Mapletree Commercial TrustTuesday, 26 April 2016  Pending
Parkway Life ReitTuesday, 26 April 2016  Pending
Far East Hospitality TrustWednesday, 27 April 2016  Pending
Cambridge Industrial TrustThursday, 28 April 2016  Pending
Lippo Malls Indonesia Retail TrustTuesday, 3 May 2016  Pending