- Frasers Hospitality Trust (SGX:ACV)’s 1H23 DPU of S$1.2649 cents (+78%/+36% y-o-y/h-o-h) reached 55% of MIBG full-year forecast. Across the portfolio, higher average door rate (ADR) led revenue growth in 1H23.
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- We increase our FY23E DPU forecast for Frasers Hospitality Trust by 3% to factor in a faster recovery across markets and lower FY24E DPU forecast due to higher re-financing cost.
- Maintain BUY rating on Frasers Hospitality Trust as DPU continued to rebound (43% DPU growth, see Frasers Hospitality Trust's distribution history).
Strong rebound in ADR and occupancy in 1H23
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- Occupancy in Australia and Malaysia picked up faster than our forecast, while UK, Singapore and Japan assets saw milder increases. Occupancy crept back up to 89% of the pre-COVID level across the board, barring Japan (76% of 1H19 level) and Malaysia (100% of 1H19 level).
- Within Frasers Hospitality Trust’s portfolio, its Kobe asset remained the laggard (76% of 1H19 occupancy), and will take longer to recover given its customer profile (MICE tourism).
Still room for growth and recovery
- Read more at SGinvestors.io.
