Far East Hospitality Trust's 2H FY23 Result Review
Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Gross revenue, NPI and the income available for distribution increased YoY mainly due to higher income from hotels, serviced residences and commercial premises.
Revenue per Available Room
REVPAR has been on the rise for both hotels and serviced residences since the reopening of borders in April 2022. Hotel REVPAR has bounced back to 95% of pre-COVID levels, while REVPAR for serviced residences is significantly higher than pre-COVID levels.
Related Parties Shareholding
REIT sponsor, manager and directors of the REIT manager hold a relatively high proportion of shares.
Lease Profile
WALE is long with no major lease expiries in the next 4 years. However, the weighted average land lease expiry is relatively short.
Debt Profile
Overall, the debt profile is favorable, although there is a low proportion of fixed-rate debt.
Diversification Profile
The portfolio lacks diversification in terms of geography and tenants.
Key Financial Metrics
The operating distributable income margin is high. However, property yield, operating distributable income on capital, and operating distribution proportion are relatively low. Additionally, distribution from divestment is also on the high side.
DPU Breakdown
TTM Distributable Income Breakdown:78.5% from Operation11.5% from Management Fees Paid in Units10% from Divestment Proceeds
TTM DPU = 98.4% of Distributable Income
Trends
Uptrend: DPU from Operation, Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin
Slight Uptrend: NAV per Unit, Property Yield
Relative Valuation
Dividend Yield - Average for 1y & 3y; Above +1SD for 5y
P/NAV - Average for 1y, 3y & 5y
Author's Opinion
As compared to the previous quarter, the visitor arrivals and REVPAR declined in 4Q resulting in a decrease in gross revenue, NPI and distribution. Nonetheless, the 2023 visitor arrival has recovered to more than 70% of pre-COVID level. For debt, there is no refinancing requirement in 2024.
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- AuntieAaA·03-01GOODLikeReport