Far East Hospitality Trust reports 6.3% rise in Q3 net property income

Far East Hospitality Trust (FEHT) reported net property income of S$27.6 million for the third quarter on Oct 29, a 6.3 per cent increase from S$25.9 million a year earlier. Gross revenue reached S$32.6 million, rising 7.2 per cent from S$30.4 million.

FEHT attributed the revenue growth mainly to improved performance at Four Points by Sheraton Nagoya. Demand linked to the Asian Games 2026 supported the property, which was a contracted hotel for the event.

Hotel revenue totalled S$25 million, an increase of 9.2 per cent from S$22.9 million. The Japanese hotels generated S$4.6 million, up 71.7 per cent from S$2.7 million, while Singapore hotel revenue edged up 0.9 per cent to S$20.4 million from S$20.2 million.

The manager said Singapore tourism demand remained soft during the quarter, with visitor arrivals falling 1.8 per cent and visitor days declining 5.1 per cent year on year. Revenue per available room at its Singapore hotels held steady at S$148.

Serviced residences generated S$3 million in revenue, up 5 per cent from S$2.9 million. Commercial premises revenue and other income fell 1.2 per cent to S$4.5 million from S$4.6 million.

Financing expenses fell 16 per cent, mainly reflecting a lower average debt cost, which stood at 2.3 per cent on Sept 30 against 3.2 per cent previously. Alongside higher property income, this helped lift income available for distribution by 6.3 per cent to S$20.2 million from S$19 million. Total debt was S$781.5 million, with aggregate leverage at 33.2 per cent.