SINGAPORE (May 8): In a growing trend, the managers of Frasers Hospitality Trust (FHT) have joined many other REIT managers in holding back distribution, in anticipation of tougher operating challenges caused by the Covid-19 outbreak.

For 2QFY2020 ended March 2020, FHT has declared a distribution per stapled security (DPS) of 0.3137 cents, down 68.1% y-o-y. This brings FHT’s DPS for 1HFY2020 to 1.6438 cents, down 26.6% y-o-y.

The big drop in DPS was because FHT has set aside some $25.3 million, or 80% of its distributable income for 1HFY2020, in anticipation of “continued weak operating performance”, commitments relating to health, safety and regulatory compliance, as well as to support Novotel Melbourne on Collins which has no third-party master lease protection.

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