Far East Hospitality Trust - UOB Kay Hian 2022-11-28: Variable Rent Kicks In As Room Rate Rises

• Far East Hospitality Trust is a pure play on the recovery of room rates in Singapore. RevPAR for hotels increased 37% q-o-q to S$104 in 3Q22. As RevPAR recovery sustains into 2023 and 2024, we expect variable rents to normalise to a respective 23% and 28% of its hotels’ master lease rental income.
• - Read this at SGinvestors.io -
• Valuation is attractive with Far East Hospitality Trust's share price trading at 2023 distribution yield of 5.9% P/NAV of 0.73x.

Variable rent recovering to pre-pandemic levels.

• Far East Hospitality Trust (SGX:Q5T) will benefit from the reopening of Singapore’s international borders since Apr 22 on a full-year basis in 2023. One of its nine hotels started to contribute variable rent in 3Q22, with a second hotel expected to do so in 4Q22. Variable rent accounts for less than 5% of master lease rental income for its hotels in 2022 (pre-pandemic in 2019: 29%) as variable rent is assessed on an annual basis.
• - Read this at SGinvestors.io -

Hotels: Reopening drives recovery.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-02-18 Far East Hospitality Trust - Continued Recovery Driven By New Attractions & MICE Events.

Previous report by UOB:
2024-11-04 Far East Hospitality Trust 3Q24 - Healthy Seasonal Strength Driven By Chinese Tourists.

Price targets by other brokers at Far East Hospitality Trust Target Prices.

Listing of research reports at Far East Hospitality Trust Analyst Reports.

Relevant links:
Far East Hospitality Trust Share Price History,
Far East Hospitality Trust Announcements,
Far East Hospitality Trust Dividend Payout Dates & Corporate Actions,
Far East Hospitality Trust News