- 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.
