Frasers Hospitality Trust posts fiscal 2H net property income more than doubled on Covid recovery

Fraser Residence in Singapore by Frasers HospitalityFraser Residence in Singapore by Frasers Hospitality

Frasers Hospitality Trust reported Friday its fiscal second half net property income more than doubled to S$30.9 million from S$14.6 million in the year-ago period as the operating environment improved from the initial impact of the Covid-19 pandemic in 2020, which caused major global travel disruptions.

Gross revenue for the six months ended 30 September increased 75.6 percent on-year to S$45.6 million, the trust said in a filing to SGX.

The distribution per stapled security (DPS) came in at 0.8041 Singapore cent, down 24.8 percent on-year from 1.0695 Singapore cents, the filing said.

FHT said the fiscal second half in 2020 was “significantly affected” as six properties in the U.K. were closed from April to June 2020 and The Westin Kuala Lumpur was shuttered from May to December 2020. Other properties and rental income was also affected in 2020.

Eu Chin Fen, CEO of the trust’s manager, said the 2021 fiscal year was challenging as well, but she pointed to signs of a gradual recovery in global travel in recent months.

“In the second half of FY2021, all country portfolios’ gross operating revenue saw better year-on-year performance,” she said in the statement. “As governments gradually re-open their economies, we expect domestic tourism to rebound first and this will benefit our assets in Australia, Japan and the U.K. which have sizeable domestic tourism markets. Our teams in these markets are preparing for the wider recovery when it comes.”

For the full fiscal year ended 30 September, Frasers Hospitality Trust reported net property income fell 3.7 percent on-year to S$57.6 million, gross revenue fell 3.4 percent on-year to S$85.5 million and the DPS fell 29.7 percent on-year to 0.9831 Singapore cent from 1.3982 Singapore cents in the year-ago period.

“The declines were due to better performance in the first five months of FY2020 which partially mitigated the adverse impact of the Covid-19 outbreak, whilst the performance for the entire period of FY2021 continued to be impacted by the Covid-19 pandemic,” FHT said. It added that it retained 10 percent of income available for distribution to conserve cash, weighing on the DPS.

Read Frasers Hospitality Trust’s filing to SGX for country-specific data.