Far East Hospitality Trust reports 1Q22 net property income rose 4.5 percent

Far East Hospitality Trust's Oasia Hotel Downtown with International Plaza in background, located in Singapore's central business district (CBD)Far East Hospitality Trust's Oasia Hotel Downtown with International Plaza in background, located in Singapore's central business district (CBD)

Far East Hospitality Trust (FEHT) reported Thursday its first quarter net property income increased 4.5 percent on-year to S$19.02 million on lower property tax and lower expenses for the commercial premises segment.

Gross revenue for the January-to-March period slipped 1.6 percent on-year to S$20.97 million due to lower contributions from the commercial premises segment, the hospitality REIT said in a filing to SGX.

The commercial premises segment reported first quarter revenue fell 9.6 percent on-year to S$3.77 million due to the divestment of Central Square in March 2022, which resulted in the termination and non-renewal of leases.

The hotel segment’s revenue was flat on-year at S$14.25 million, FEHT said. The segment’s occupancy fell 8.4 percentage points on-year in the first quarter to 67.7 percent after the government contract to provide isolation facilities at three of the REIT’s hotels ended, putting the rooms back on the market starting from late December, the filing said. However, revenue per available room (RevPAR) grew 15.7 percent on-year in the quarter to S$59, FEHT said.

The serviced residences posted revenue for the quarter increased 2.4 percent on-year to S$2.95 million.

“The serviced residences continued to demonstrate strong performance. Support from long-stay corporate sources helped to keep the SRs performing above fixed rent,” FEHT said, noting average occupancy grew 11.9 percentage points on-year to 86.6 percent and RevPAR rose 24.3 percent on-year to S$174.

Income available for distribution in the quarter increased 17.2 percent on-year to S$14.69 million on lwer finance expenses, FEHT said.

In its outlook for 2022, FEHT said the gradual resumption of travel globally amid the transition to endemic Covid-19 will facilitate a recovery.