- RevPAR increased 44% y-o-y and 14% q-o-q to S$131 for its nine hotels. All Far East Hospitality Trust's hotels contributed variable rent, which accounted for 31% of master lease rental in 9M23.
- - Read this at SGinvestors.io -
- Far East Hospitality Trust provides a 2024 distribution yield of 7.6%. Its P/NAV of 0.63x is unwarranted given its good corporate governance, strong sponsor and low aggregate leverage of 32.2%. Maintain BUY.
Far East Hospitality Trust's 3Q23 Results
- Far East Hospitality Trust (SGX:Q5T) reported 3Q23 distributable income of S$22.9m (+51% y-o-y), which is above our expectations due to higher RevPAR for both hotels and serviced residences.
Hotels: Steep sequential recovery.
- - Read this at SGinvestors.io -
- Rendezvous Hotel Singapore and Village Hotel Albert Court, which were released from government contracts in mid-March, ramped up rapidly. One hotel remains under government contract.
- All hotels contributed variable rent, which accounted for 31% of master lease rental in 9M23. Revenue for hotels increased 56.3% y-o-y (Elizabeth Hotel was undergoing renovation in 3Q22).
Serviced residences: Steady and consistent contributor.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-10-26
Read also UOB's most recent report:
2024-02-15 Far East Hospitality Trust - Fastest Growth With Lowest Risk.
Price targets by 3 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 Dividends & Corporate Actions,
Far East Hospitality Trust News Articles
