SINGAPORE – Far East Hospitality Trust (FEHT) on Wednesday reported a 51 per cent rise in distributable income for the third quarter ended September to $22.9 million from $15.1 million in the year-ago period.

Gross revenue for the third quarter surged 42.5 per cent to $30.2 million from $21.2 million in 2022. This was led by strong contributions from the hotel segment, which recorded a 56.3 per cent increase in revenue to $23.3 million from $14.9 million.

As the hotel segment benefited from rising international visitor arrivals into Singapore over the quarter, average occupancy for the hotel portfolio grew 10.6 percentage points to 86.7 per cent from 76.1 per cent. Average daily rates rose 26 per cent year on year to $173 from $137.

This translated to a 43.6 per cent improvement in revenue per available room (RevPAR) to $150 from $105 in the same quarter a year ago. It also exceeded pre-pandemic levels when financial year 2019’s RevPAR was $142.

The stapled group’s serviced residences and commercial premises segments reported revenue growth for the quarter, posting year-on-year growth of 14.4 per cent to $2.9 million and 6.5 per cent to $3.9 million respectively.

FEHT’s net property income for the third quarter correspondingly rose 42.4 per cent to $28.1 million from $19.7 million in the previous year.

For the year to date ended September 2023, gross revenue grew 32.2 per cent on the year to $82.2 million from $62.2 million, while net property income rose 34.8 per cent to $77.1 million from $57.2 million in the previous comparative period.

Excluding Central Square – which was divested in March 2022 – revenue from the serviced residences segment would have increased by 18.9 per cent instead of 6.6 per cent. Revenue contribution from the commercial premises segment would have been up 15.5 per cent rather than the 9.5 per cent year-on-year growth reported.

The stapled group’s managers estimated an indicative distribution per stapled security (DPS) of 3.04 cents as at end-September, comprising an indicative DPS of 1.12 cents for the third quarter in addition to FEHT’s first-half DPS of 1.92 cents.

The overall year-to-date indicative figure represents a progressive recovery in DPS and forms about 80 per cent of financial year 2019’s DPS, said the managers.

Citing industry projections for a continued recovery across the travel, events and hospitality sectors, they expect FEHT’s properties to achieve higher variable rents going forward.

Stapled securities of FEHT closed 0.9 per cent higher at 57 cents on Wednesday. THE BUSINESS TIMES