SINGAPORE - Far East Hospitality Trust’s distribution per stapled security (DPS) for the second half ended December 2023 rose 25.4 per cent to 2.17 cents, from 1.73 cents in the year-ago period.

Gross revenue gained 28.6 per cent year on year to $54.8 million.

The stapled hospitality group registered higher revenue contributions across all business segments – particularly in the hotel segment, where contributions grew 36.5 per cent to $41 million.

Revenue per available room (RevPAR) for hotels rose 19.9 per cent to $140.

Average occupancy improved 2.6 percentage points to 81.7 per cent, resulting in a 16.1 per cent higher average daily rate (ADR) of $171.

Within the serviced residences segment, revenue per available unit (RevPAU) improved 10.7 per cent to $234.

Average occupancy was boosted by 0.9 percentage point to 87.4 per cent, while ADR was up 9.5 per cent to $267.

The trust’s net property income (NPI) for the second half of 2023 rose 24.8 per cent year on year to $49.8 million, from $39.9 million.

Over the half-year period, $2.3 million of taxable income available for distribution was released to stapled security holders.

As a result of the higher NPI and distribution of other gains, distribution to stapled security holders increased 26.3 per cent to $43.5 million in the second half.

For the full year, Far East Hospitality Trust’s gross revenue rose 27.8 per cent on the year to $106.8 million, while NPI was 27.7 per cent higher at $98.7 million.

Hotel RevPAR for financial year 2023 was up 47.8 per cent to $136, with average occupancy up 6.3 percentage points to 80.1 per cent, and ADR rising 36.1 per cent to $170.

RevPAU for serviced residences grew 17 per cent to $229, while average occupancy was up 0.3 percentage point to 87.8 per cent, with ADR rising 16.6 per cent to $260.

Income available for distribution rose 27.3 per cent to $75.1 million, resulting in a 25.1 per cent higher DPS of 4.09 cents compared with 3.27 cents in financial year 2022.

Far East Hospitality Trust is a stapled hospitality group comprising a real estate investment trust (Reit) and a business trust which has been dormant since the group’s listing.

Mr Gerald Lee, chief executive of the Reit manager, noted that the stapled group’s finanical year 2023 distribution income surpassed pre-pandemic levels in 2019.

Far East Hospitality Trust is “well-positioned to ride on the further recovery of the hospitality sector”, he added.

“While challenges remain in the short to medium term, the manager will continue to explore all opportunities to further grow revenue and distribution to stapled securityholders in the year ahead.”

Stapled securities of Far East Hospitality Trust closed 0.5 cent, or 0.8 per cent, lower at 63.5 cents on Feb 14. THE BUSINESS TIMES