Far East Hospitality Trust (FEHT)

Slowing tourist arrivals for now but new attractions, limited rooms to benefit hospitality REITs ultimately

SINGAPORE (Aug 28): In 1Q19 ended March, Singapore saw international visitor arrivals grow 1% to 4.7 million visitors while tourism receipts fell 4.8% y-o-y to $6.5 billion, according to data from the Singapore Tourism Board (STB). Meanwhile, gazetted hotel room revenue grew 4.3% to $1 billion.

Across the different components of tourism receipt, Accommodation, Food & Beverage, Shopping and Sightseeing, Entertainment & Gaming fell by 12%, 7%, 7% and 3% respectively.

GDP slowdown and trade war take their toll on local hospitality sector

SINGAPORE (Aug 5): On July 30, CDL Hospitality Trusts, Far East Hospitality Trust, Ascott Residence Trust and ARA US Hospitality Trust released their 2QFY2019 results before the market opened. Performance was varied (see Table 1), with CDLHT’s distribution per stapled security (DPS) for 2QFY2019 falling 3.3% y-o-y to 2.07 cents, and FEHT’s DPS for the same period declining 9.9% y-o-y to 0.91 cents. All four have difference focuses.

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Far East Hospitality Trust 'not yet compelling' amid muted outlook: OCBC

SINGAPORE (June 13): OCBC Investment Research is maintaining its “hold” rating on Far East Hospitality Trust (FEHT) with a fair value estimate of 67 cents, amid a muted outlook and ongoing macroeconomic uncertainties that are expected to weigh on the stock.

According to lead analyst Deborah Ong, the stock has performed negatively since the research house downgraded FEHT to “hold” from “buy” on Apr 15.

“Far East Hospitality Trust has posted total returns of -4.5% since our downgrade,” Ong says in a Wednesday report.

SGX explains why Singapore is Asia's largest global REIT platform

(May 6): On March 27, during Manulife US Real Estate Investment Trust’s Investor Day event, Ronald Tan, director of Equity Capital Market at the Singapore Exchange, asked the audience a few questions. It was to gauge the public’s reception to various asset classes. Who would want another office REIT, Tan asked. Almost the entire audience of 400 raised their hands. MUST is an office REIT and the audience comprised MUST unitholders.

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FEHT kept at ‘buy’ by both CGS-CIMB and Maybank on ‘cautious optimism’

SINGAPORE (Apr 29): CGS-CIMB Securities and Maybank Kim Eng are maintaining their “buy” calls on Far East Hospitality Trust (FEHT) with target prices of 71 cents and 80 cents respectively.

Although off to a slow start in 1Q19, CGS-CIMB says the hospitality REIT should gain on lower cost of equity assumption due to a more benign interest rate outlook while Maybank says FEHT’s business fundamentals have remained sound.

Far East Hospitality Trust declares 3.2% lower 1Q DPS of 0.91 cent

SINGAPORE (Apr 25): The manager of Far East Hospitality Trust (FEHT) has declared 1Q19 DPU of 0.91 cent, 3.2% lower than 0.94 cent in 1Q18.

Income available for distribution also saw a slight 1.2% decrease to $17.4 million from $17.6 million a year ago.

As at Mar 31, the trust’s portfolio includes 13 properties consisting of nine hotels and four serviced residences (SR) located in Singapore, as well as the Sentosa development project.

ART, FEHT downgraded to 'hold' by OCBC; hospitality sector grapples with weak RevPAR

SINGAPORE (Apr 16): OCBC Investment Research has downgraded its recommendations for both Ascott Residence Trust (ART) and Far East Hospitality Trust (FEHT) to “hold” from “buy”, after a strong rally so far this year for the two hospitality REITs.

“ART and FEHT have inched up toward our fair value,” says lead analyst Deborah Ong in a Monday report. “As our fair values for each remain the same, we are downgrading both ART and FEHT today.”

The brokerage has a fair value estimate of $1.25 on ART and a fair value estimate of 68 cents on FEHT.

FEHT downgraded to 'hold' on slowdown in upscale and mid-tier hotel RevPAR

SINGAPORE (Apr 16): “According to channel checks as well as Singapore Tourism Board (STB) data, we are likely looking at a soft 1Q19 for SG hotels,” says OCBC Investment Research analyst Deborah Ong in a Monday report.

The STB data reflected poor RevPAR performance from upscale and mid-tier hotels for Jan-Feb 2019. Upscale hotels posted -3.8% and -6.5% y-o-y RevPAR growth for Jan and Feb respectively, while mid-tier hotels posted 1.0% and -4.3% y-o-y RevPAR growth.

Channel checks have also revealed that March was also a subdued month for the industry.

12 stocks that could get a boost from IR 2.0

SINGAPORE (Apr 5): The $9 billion investment to renew and refresh Singapore’s two integrated resorts (IRs) could provide some vibrancy to the domestic economy in the next few years and whip up some optimism in the city-state, says CGS-CIMB Research.

“The economic implication of this transformation will first be felt in the construction sector before having a multiplier effect on the rest of the economy via service-producing industries (jobs creation),” says analyst Lim Siew Khee in a Friday report.

Brokers unanimously bullish on Far East Hospitality Trust after a stellar 4Q

SINGAPORE (Feb 14): DBS Group Research, CGS-CIMB Securities and Maybank Kim Eng are maintaining their “buy” calls on Far East Hospitality Trust with the respective price targets of 70 cents, 68 cents and 75 cents.

This comes after the REIT manager on Wednesday posted a 3.1% increase in 4Q distribution per stapled security (DPS) to 1 cent, with expectations for the trust to enjoy even stronger growth momentum going into FY19.

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