Frasers Hospitality Trust reported Tuesday its fiscal second quarter net income fell 9.1 percent on-year to S$25.2 million on weaker performances from the Australia, Malaysia and Japan portfolios.
Gross revenue for the quarter ended 31 March declined 7.6 percent on-year to S$34.6 million, the trust said in a filing to SGX.
The foreign-exchange impact of the Japanese yen, Austrlian dollar, Malaysian ringgit, British pound and the euro accounted for 53 percent and 40 percent of the declines in gross revenue and net property income respectively, Frasers Hospitality Trust said.
“Our properties in Sydney have been affected by the challenging trading environment in the city, and softer group and leisure demand while The Westin Kuala Lumpur reported lower room and food and beverage (F&B) revenue as corporate demand has remained weak for some time,” Eu Chin Fen, CEO of the trust’s manager, said in the statement.
In Japan, “ANA Crowne Plaza Kobe turned in stable room revenue in this quarter although its F&B revenue was affected by the reduced wedding business,” she added.
The distribution per stapled security (DPS) was 0.9846 Singapore cent, down 11.5 percent from 1.1126 Singapore cents in the year-ago period, the filing said.
For the fiscal first half, the trust reported net property income fell 4.9 percent on-year to S$56.3 million, on gross revenue of S$75.2 million, down 4.7 percent on-year. DPS for the fiscal first half was 2.2388 Singapore cents, down 7.6 percent from 2.4233 Singapore cents in the year-ago period, the trust said.
Frasers Hospitality Trust’s portfolio has 15 properties, with nine hotels and six serviced residences, located across Singapore, Australia, the U.K., Japan, Malaysia and Germany.