Far East Hospitality Trust reported Thursday first quarter net property income rose 9 percent on-year to S$25.07 million on contributions from the Oasia Hotel Downtown.
The trust said it completed its acquisition of Oasia Hotel Downtown in April 2018.
Gross revenue for the quarter ended 31 March increased 8 percent on-year to S$27.79 million, the trust said in a filing to SGX before the market open.
The distribution per stapled security (DPS) was 0.91 Singapore cent, down 3.2 percent from 0.94 Singapore cent in the year-ago period, amid an enlarged base of units, the trust said.
Finance expenses increased 48.6 percent on-year to S$7.66 million on an additional loan to finance the acquisition of the Oasia, Far East Hospitality Trust said.
“The hotels and serviced residences in our portfolio recorded a slight improvement in the average rate,” Gerald Lee, CEO of the REIT manager, said in the statement.
“The hotels continued to achieve high occupancies, although corporate demand was relatively softer as compared to the same period last year given the absence of major events such as the biennial Singapore Airshow,” he said. “The increase in hotel room supply is expected to be moderate in the near future, providing some stability to facilitate a recovery in the sector.”
For the hotels, the revenue per available room, or RevPAR was S$140 in the quarter, up 0.7 percent on-year, with average occupancy at 89.2 percent, down 0.4 percentage point, the trust said.
For the serviced residences, RevPAR was S$174 in the quarter, flat on-year, with average occupancy of 80.2 percent, down 1.1 percentage point on-year, the trust said.
In its outlook, the trust was cautiously optimistic.
“While there may be some volatility in the near-term given the subdued corporate demand due to global macroeconomic concerns, the REIT Manager is positive about the medium-term prospects of the industry,” the statement said.
“This is supported by the government’s recently announced plans to drive quality tourism by rejuvenating existing offerings and implementing new developments,” it added.
The trust has 13 properties, including nine hotels and four serviced residences in Singapore, as well as a Sentosa hotel development project, the filing said.