SINGAPORE (Oct 26): The manager of Frasers Hospitality Trust (FHT) has declared a 4Q18  DPS of 1.2154 cents, 4.8% below last year.

Gross revenue and net property income were $38.7 million and $29.4 million respectively, down 6.9% and 6.7% y-o-y. The declines were due to overall weaker portfolio performance except for the Singapore and Germany portfolios.

However, distributable income declined a smaller 3.4% y-o-y to $23 million due to a writeback of tax provision.

The softer performance of the Australia portfolio was due to the more competitive trading environment in Sydney. However, Novotel Sydney Darling Square continued to perform better y-o-y with the return of its full room inventory compared to last year when there was renovation.

The Westin Kuala Lumpur turned in significantly lower room and F&B revenue for the quarter as corporate demand remained weak.

ANA Crowne Plaza Kobe’s revenue also declined following the closure of its banquet space to replace partition walls. In addition, the hotel experienced cancellations due to the recent typhoons.

In contrast, the Singapore portfolio’s performance remained stable in 4Q18, on the back of higher room revenue and operating efficiencies from Fraser Suites Singapore.

Maritim Hotel Dresden also reported higher room revenue, underpinned by healthy gains in revenue per available room (RevPAR).

As at Sept 30, FHT’s investment portfolio was valued at a total of $2.40 billion, down from $2.44 billion a year ago, mainly due to the weakening of most foreign currencies against the Singapore dollar.

FHT’s total borrowings stood at $835.0 million, with gearing at 33.6% and the weighted average maturity at 2.91 years.

Year to date, units in FHT are down 11.4% at 70 cents.