Far East Hospitality Trust (SGX:Q5T
) (FEHT) has reported dividend per stapled security (DPS) of 3.70 cents for FY2025 ended Dec 31, down 8.4% y-o-y, due to a lower amount of distribution from other gains.
Distribution from other gains was 50.8% y-o-y lower to just $7.9 million in FY2025, following the final distribution from the divestment of Central Square.
Gross revenue for FY2025 rose 2.5% y-o-y to $111.4 million, driven by contribution from the newly acquired hotel in Japan, Four Points by Sheraton Nagoya (FPN) and growth in FEHT’s commercial premises and other income as well.
Net property income for FY2025 declined 2.8% y-o-y to $96.6 million, primarily due to lower revenue from the Singapore hotels and serviced residences. However, this was partially offset by higher contributions from the commercial premises and FPN.
Income available for distribution increased 1.9% y-o-y to $67.9 million, supported by a $4.9 million y-o-y reduction in net finance expenses.
As at Dec 31, 2025, FEHT’s portfolio valuation increased by 1.7% y-o-y to $2.6 billion, primarily due to the inclusion of FPN following its acquisition in last April as well as the increase in value of commercial premises.
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Meanwhile, FEHT’s total borrowings stood at $774.8 million, translating to an aggregate leverage of 33.0%.
The REIT manager has commenced discussion on the upcoming $62.5 million term loan due in December and there is an extension option which can be exercised as provided in the facility agreement.
Weighted average debt maturity was 3.6 years as at Dec 31, 2025 and 53.5% of borrowings were on fixed interest rates from interest rate swap contracts or fixed rate borrowings.
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Weighted average cost of debt declined 100 basis points to 3.1% in FY2025 from 4.1% in the prior year, reflecting lower fixed rates on new hedges and lower floating rates.
“We remain focused on capital management and controlling cost to maximise returns to unitholders. With a strong balance sheet, FEHT is well positioned to pursue opportunities that can enhance income resilience over the longer term,” states Gerald Lee, CEO of the manager.
Units in FEHT was up 0.5 cents, or 0.81% higher at 62.5 cents on Feb 11.
