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Frasers Hospitality Trust posts 22.4% increase in FY2022 DPS to 1.6355 cents

Samantha Chiew
Samantha Chiew11/4/2022 08:40 AM GMT+08  • 3 min read
Frasers Hospitality Trust posts 22.4% increase in FY2022 DPS to 1.6355 cents
Frasers Hospitality Trust posts 22.4% increase in FY2022 DPS. Photo: IHG
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Frasers Hospitality Trust (FHT) announced that its distribution per stapled security (DPS) for the FY2022 ended September period saw a 22.4% increase to 1.6355 cents from the previous year’s 0.9831 cent.

This came on the back of income available for distribution increasing some 66.3% y-o-y to $35.0 million and distribution to stapled securityholders gaining 66.4% y-o-y to $31.5 million.

Gross revenue was 12.1% higher y-o-y at $95.9 million from $85.5 million last year. This brings net property income to $69.6 million, 20.7% higher than $57.6 million a year ago. This was due to improved performance across all of FHT’s regions as gradual global recovery is underway.

The Singapore portfolio’s gross operating revenue (GOR) and gross operating profit (GOP) increased 50.1% and 63.4% y-o-y respectively. Stable recovery was observed at both properties with growth observed in average daily rate (ADR) and revenue per average room (RevPAR).

The portfolio in Australia registered a y-o-y increase of 6.9% in GOR, whereas GOP declined 5.0% y-o-y, due to the exit of the government quarantine business in Novotel Melbourne on Collins since end December 2021 and Sydney Wentworth (SSW) since end February 2021 which resulted in higher operating costs with higher staff strength after re-opening to the public as well as the divestment of SSW in April 2022.

The UK portfolio’s GOR and GOP increased by over 100% y-o-y to £23.1 million and £10.5 million respectively, compared to FY2021. The portfolio registered a strong y-o-y improvement in performance as the majority of the portfolio was closed same time last year. ANA Crowne Plaza Kobe’s GOR and GOP increased by 35.7% and 81.6% y-o-y respectively in FY2022. The overall uplift was due to the easing of the state of emergency and quasi-state of emergency in March.

See also: ParkwayLife REIT reports 2.1% rise in FY2022 DPU

The Westin Kuala Lumpur’s GOR increased by over 100% y-o-y and GOP was RM5.9 million. Covid-19 restrictions were fully lifted since April as part of the country’s move towards the endemic phase.

Germany’s Maritim Hotel Dresden’s FY2022 performance had shown signs of recovery after travel restrictions were eased. The hotel’s GOR and GOP saw an increase of 81.7% and over 100% y-o-y respectively compared to FY2021.

For the 2HFY2022 period, DPS came in 15.9% higher y-o-y at 0.9316 cent, while gross revenue was 13.5% higher at $51.8 million and net property income was 22.7% higher at $37.9 million.

See also: Starhill Global REIT report 2.2% rise in DPU in 1HFY2023

To recap, FHT convened a scheme meeting on Sept 12 to seek approval from stapled securityholders for its privatisation. The approval for the scheme was not passed, hence FHT remains listed on the Singapore Exchange (SGX). Its managers will continue its existing strategy to create and deliver long-term value to the stapled securityholders.

While the manager notes a recovery in international tourism, which is boosting the overall tourism sector, it remains weary of various challenges and uncertainties, The managers say that they remain focused to capture the upside of the recovery and will proactively roll out strategies and initiatives to navigate through the challenges of rising operating expenses and a persistent labour crunch.

Units in FHT last traded at 45.5 cents on Nov 3.

Photo: IHG

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