SINGAPORE (Feb 15): The manager of Far East Hospitality Trust (Far East H-Trust) has reported 4Q17 Distribution per Stapled Security (DPSS) of 0.97 cents, 13.4% lower from 1.12 cents a year ago.
Gross revenue fell 6.6% to $25.7 million for the quarter. Net property income fell 7.0% to $23.1 million and income available for distribution was 9.7% lower at $18.2 million.
Revenue per available room (RevPAR) for the hotel portfolio decreased 2.4% to $132 after average occupancy of the hotels remained steady at 85.4% although average daily rate (ADR) fell 1.1 ppt.
The serviced residences (SRs) continued to be challenged in 4Q 2017. Revenue per available unit (RevPAU) declined 5.5% year-on-year to $166 as average occupancy was 1.6ppt lower at 78.2%, and average daily rate fell 3.5% as demand from the corporate segment remained lukewarm.
Revenue from the retail and office spaces declined 1.9% in 4Q, due to slightly lower occupancy and rental rates.
For the full FY17, gross revenue came in 4.8% lower at $103.8 million. Net property income fell 5.3% to $93.2 million while income available for distribution was 7.8% lower at $72.0 million. On a per Stapled Security basis, the distribution was 3.90 cents, 9.9% lower than 4.33 cents a year ago.
In its outlook, Far East H-Trust's manager says the operating environment for hotels is expected to stabilise, with major MICE and biennial events providing some uplift in 2018.
The outlook for the serviced residences remains subdued. The performance of Far East H-Trust’s serviced residences, driven mainly by the corporate segment, is expected to remain soft.
Units in Far East H-Trust closed 1 cent lower at 72 cents on Wednesday.