FRASERS Hospitality Trust (FHT) recorded distribution per stapled security (DPS) of S$0.011682 for the second half of its financial year ended Sep 30, down 0.8 per cent from S$0.011777 for the corresponding period of the previous year.
This came as gross revenue and net property income (NPI) for H2 rose, tracking continued recovery in the stapled group’s overall operating performance, said its managers on Tuesday (Nov 12).
Gross revenue for the period was up 13.6 per cent at S$69.2 million, from S$61 million in H2 FY2023. NPI for H2 FY2024 rose 5.5 per cent to S$47.8 million, from S$45.3 million the previous year.
Despite higher gross revenue and NPI, income available for distribution was down 0.8 per cent at S$25 million from S$25.2 million as it was impacted by higher finance costs and tax expenses. The distribution will be paid out on Dec 27.
FHT’s revenue per available room for its Singapore portfolio declined 5.9 per cent year on year as its gross operating revenue fell 3.6 per cent and gross operating profit was up 10.4 per cent for H2 FY2024.
For the full year ended Sep 30, FHT’s DPS stood at S$0.022592, down 7.5 per cent on the year from S$0.024426 – in line with its 7.5 per cent fall in income available for distribution, which decreased to S$48.3 million from S$52.3 million in 2023.
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Gross revenue was up 7.6 per cent at S$132.5 million from S$123.2 million. NPI was 2.1 per cent higher at S$92.5 million from S$90.5 million.
Gearing was at 34.9 per cent as at Sep 30, with a weighted average debt to maturity of 2.1 years. The stapled group’s interest coverage ratio stood at three times.
FHT’s portfolio valuation as at Sep 30 was around S$2 billion – a 2.9 per cent year-on-year increase in Singapore dollar terms. Nearly all its markets logged growth in portfolio valuation in terms of Singapore dollars, except for its UK and Germany portfolios.
Eric Gan, chief executive of FHT’s managers, said the group’s financial performance was boosted by recovery in the global hospitality sector, even as higher borrowing costs posed challenges.
“We saw strong recovery performances from key markets such as Europe, Malaysia and Japan, and the inclusion of Koto no Hako has also strengthened our portfolio,” Gan said.
He added that FHT would maintain its focus on capital management and operational efficiency to capture growth.
FHT is a stapled group that includes Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust. Its Singapore portfolio includes properties such as hotel InterContinental Singapore and serviced residence Fraser Suites Singapore.
Stapled securities of FHT closed Monday flat at S$0.425.
