FAR East Hospitality Trust : Q5T 0%’s (FEHT) net property income rose 6 per cent year on year to S$25.1 million for the first quarter ended March, from S$23.7 million in Q1 FY2023.

Gross revenue was up 7.5 per cent to S$27.1 million versus S$25.2 million a year prior as contributions from the hotels and commercial premises segments “continued to grow strongly”, said its managers on Tuesday (Apr 30).

Growth from these segments more than offset a 2 per cent year-on-year decline in gross revenue contributions from serviced residences, where average occupancy decreased 3.7 percentage points due to the expiration of long-stay contracts in the earlier part of the quarter.

FEHT’s managers said the serviced residences segment has since secured new contracts which boosted occupancy to a level comparable to the previous year.

Average daily rates (ADRs) for serviced residences grew 2.9 per cent to S$265, though revenue per available unit was 1.5 per cent lower at S$221.

Within the hotels segment, occupancy declined 1.5 percentage points to 80.4 per cent as some of the portfolio’s hotels exited government contracts in March, October and December 2023.

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The managers said these properties had greater flexibility in securing higher ADRs, resulting in an 8.8 per cent year-on-year increase to S$179.

Revenue per available room grew 6.7 per cent to S$144 as a result.

As at end-March 2024, total assets were 0.9 per cent lower at S$2.6 billion versus end-2023, while net assets fell 1.4 per cent to S$1.8 billion.

Net asset value per stapled security was 1.5 per cent lower at S$0.915 versus S$0.929 as at Dec 31, 2023.

The managers highlighted FEHT as one of the lowest-geared Singapore real estate investment trusts at 31.5 per cent gearing, with a weighted average debt maturity of 3.5 years and interest coverage ratio of 3.5 times.

Citing upcoming tourism developments and data that points to a recovery in both tourism and the macroeconomic environment, the managers said their outlook in these respects was “positive”.

Stapled securities of FEHT ended Monday S$0.005 or 0.8 per cent up at S$0.615.