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Far East Hospitality Trust reports 36.4% lower NPI in 3Q business update

Felicia Tan
Felicia Tan • 2 min read
Far East Hospitality Trust reports 36.4% lower NPI in 3Q business update
Units in FEHT closed flat at 56.5 cents on Oct 29.
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Far East Hospitality Trust (FEHT) has reported gross revenue of $20.6 million for 3QFY2020, down 33.2% from the $30.9 million a year ago. This was due mainly to a decline in master lease rental for the hotels and serviced residences arising from the impact of Covid-19.

See also: Far East Hospitality Trust declares 43.4% decline in 1H20 DPS to 1.03 cents

Revenue from the commercial premises fell 37.9% y-o-y to $3.4 million due to rental rebates given during the quarter.

Accordingly, net property income (NPI) fell 36.4% y-o-y to $17.9 million.

Year-to-date ended September, gross revenue fell 25.1% y-o-y to $64.9 million due to a decline in master lease rentals for hotels.

NPI fell 27.8% y-o-y to $56.5 million.

Income available for distribution stood 31.9% lower y-o-y at $37.7 million.

During 3QFY2020, hotels in FEHT registered average occupancy of 97.3%, up 5 percentage points from a year ago due to contracts from companies that required workers to stay in Singapore due to Malaysia’s border closures. The higher average occupancy rate was also due to bookings from the government to house those who had to be isolated for Covid-19.

Revenue per available room (RevPAR) fell 55.8% y-o-y to $67.

Serviced residences saw an average occupancy rate of 87.1% for the quarter, down 1.1 percentage points from the year before.

Revenue per available unit (RevPAU) fell 20.1% y-o-y to $157.

“Far East H-Trust continues to benefit from stable master leases signed with well-capitalized companies of the sponsor. The high fixed rent component of the master leases provides downside protection for the gross revenue of the trust,” it says in its update released on Oct 30.

Units in FEHT closed flat at 56.5 cents on Oct 29.

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