To The Moon

Basic Profile & Key Statistics

• Main Sector(s): Hospitality, Retail & Office

• Country(s) with Assets: Singapore

• No. of Properties (exclude development/associate/fund): 12

Key Indicators

Performance Highlight

Despite the divestment of Central Square on 24 March 2022, gross revenue, NPI and the income available for distribution increased yoy mainly due to higher income from the hotels' segment.

Revenue per Available Room

REVPAR has been improving for both hotels and serviced residences where REVPAR for hotels has recovered to 90% of the 2019 level and REVPAR for serviced residences has surpassed the 2019 level.

Asset Enhancement Initiative

AEI for Orchard Rendezvous Hotel has been completed forecourt and outdoor refreshment area as well as enhancement and repainting of the facade.

Distribution Breakdown

• Distributable Income Breakdown:77.6% from Operation13% from Fees Payable/Paid in Units9.4% from Proceeds from Divestment

• Distribution = 99.5% of Distributable Income

Related Parties Shareholding

• REIT Sponsor's Shareholding: Above median for more than 20%

• REIT Manager's Shareholding: Above median for more than 20%

• Directors of REIT Manager's Shareholding: Above median for more than 20%

Lease Profile

• WALE: Above median for more than 20%

• Highest Lease Expiry within 5 Years: Below median for more than 20%; Falls in 2023

• Weighted Average Land Lease Expiry: Below median for more than 10%

Debt Profile

• Gearing Ratio: Below median for more than 10%

• Cost of Debt: Below median for more than 20%

• Fixed Rate Debt %: Below median for more than 20%

• Unsecured Debt %: 100%

• WADM: ± 10% from median

• Highest Debt Maturity within 5 Years: Below median for more than 10%; Falls in 2024

• Interest Coverage Ratio: ± 10% from median

Diversification Profile

• Top Geographical Contribution: 100%

• Top Property Contribution: ± 10% from median

• Top 5 Properties' Contribution: ± 10% from median

• Top Tenant Contribution: Above median for more than 20%

• Top 10 Tenants' Contribution: Above median for more than 20%

Key Financial Metrics

• Property Yield: Below median for more than 20%

• Management Fees over Distribution: ± 10% from median; $6.90 distribution for every dollar paid 

• Distribution on Capital: Below median for more than 20%

• Distribution Margin: Above median for more than 20%

Trends

• Uptrend: Distribution Margin

• Flat: NAV per Unit, Interest Coverage Ratio

• Slight Downtrend: 

• Downtrend: DPU, Property Yield, Distribution on Capital

Relative Valuation

• P/NAV: Average for 1y, 3y & 5y

• Dividend Yield: Average for 1y, 3y & 5y

Author's Opinion

Since the border opening on April 1st, 2022, there has been a consistent improvement in performance. As visitor arrivals are expected to increase this year, the recovery is expected to further benefit FEHT's performance going forward.

You could also refer below for more information:

SREITs Dashboard- Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Review - List of previous REIT analysis posts

*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage due to the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.