Far East Hospitality Trust has reported dividend per security of 1.78 cents for its 1HFY2025, down 9.2% y-o-y, with both net property income and gross revenue lower for the half year ended June.
FEHT attributes lower topline of $51.6 million, down 4.2% y-o-y, to its weaker Singapore hotels, but partly offset by improvements in its commercial properties, plus maiden contribution from newly-acquired Four Points by Sheraton Nagoya, its first overseas asset.
Net property income was down 7.7% y-o-y to $45.6 million with lower revenue but higher costs.
In conjunction with the earn-out stapled securities expected to be issued on August 20 due to the acquisition of Oasia Hotel Downtown, the REIT will be making an advance distribution of 0.47 cents for the period July to Aug 19.
As indicated earlier, the REIT is sharing a portion of the capital gains from the divestment of Central Square. Unit holders will receive a further and final $2.5 million of other gains in the second half, bringing the total to $8.0 million for this year.
"After a slow start in the first half of the year amidst macroeconomic headwinds and cautious corporate sentiments, demand has started to trend more positively," says Gerald Lee, CEO of the REIT's manager.
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"We remain focused on improving the operating performance while exercising prudent cost and capital management.
"Our low gearing provides Far East H-Trust the financial flexibility to pursue yield-accretive opportunities," he adds.
FEHT units closed at 61 cents on July 29, down 0.81% for the day.
