Frasers Hospitality Trust - DBS Research 2023-11-08: Two Leaps Forward With Return Of MICE

• Frasers Hospitality Trust (SGX:ACV) reported full-year FY23 revenue of S$123.2m (+28.5% y-o-y). Net property income for the year rose a strong 30.1% y-o-y to S$90.5m, while distributable income rose 49% y-o-y to S$52.3m.
• - Read this at SGinvestors.io -
• FY23 DPS of 2.4426 cents was 49% higher y-o-y, and ahead of our estimates. See Frasers Hospitality Trust's distribution dates.

Gross operating revenue above pre-COVID levels for all markets except Japan.

• RevPAR across all major markets has exceeded pre-COVID levels, with the exception of Japan. Singapore continues to be the crown jewel with a 2H23 RevPAR of 305%, approximating 119% of pre-COVID levels.
• - Read this at SGinvestors.io -
• Other geographical markets in the likes of Australia, UK, and Malaysia are also seeing RevPAR growth at a level that is 9%-13% higher than pre-COVID levels, supported by a return of MICE events.
• On a full-year basis, gross operating revenue has recovered ~100.4% to 117.7% across all markets, a ~30%-65% increase y-o-y.
• Gross operating profits moved in tandem in Singapore, Malaysia, and Germany to exceed pre-COVID levels, while that of Australia, UK, and Japan are still below pre-COVID levels.

Improving ICR ratio on the back of low gearing rate of 34%.

• Read more at SGinvestors.io.

Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-11-08 SGinvestors.io

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