Bookmark & Share
Far East Hospitality Trust (H-Trust) saw its distributable income drop 4.9 percent year-on-year to S$22.1 million in Q2 2014, on the back of a challenging operating environment.
The trust’s distribution per unit fell 13.3 percent from 1.43 cents in Q2 2013 to 1.24 cents in Q2 2014 – a decline attributed to an enlarged stapled security base, after it issued 148.3 million new stapled securities to a unit of The Straits Trading Company and Golden Development (a member of Far East Organization) as part of the acquisition cost of Rendezvous Hotel Singapore (RHS) and Rendezvous Gallery.
Net property income also fell 1.3 percent year-on-year to S$26.6 million, while the trust’s gross income increased 1.0 percent year-on-year to S$29.6 million – primarily due to the recognition of additional revenue from RHS, which it acquired in August 2013.
According to Gerald Lee, Chief Executive Officer of the REIT Manager, the occupancies at Far East H-Trust’s hotels and serviced residences were affected by the weak macroeconomic environment and adverse factors impacting leisure travel in Q2 2014.
Nonetheless, the trust’s overall performance was partly mitigated by the improved income from retail and office spaces.
Looking ahead, Lee expects “the renovation of [our] properties will place us in a better position to weather the near term challenges of the operating environment.”
He also noted that the refurbishment of 136 rooms at Village Hotel Albert Court has already been completed while the asset enhancement works for Village Hotel Changi and Regency House are expected to complete in the coming months.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
Related Stories:
Industrial vacancy up amid URA’s 60:40 rule: report
Strata industrial property prices to fall: report
Industrial prices, rents moderate amid falling occupancy rate