- Far East Hospitality Trust (SGX:Q5T)'s gross revenue for 1Q24 rose by 7.5% y-o-y to S$27mil on the back of leisure recovery, attributed to several mega concerts in 1Q24, accounting for 23% of our FY24e estimates. NPI increased by 6% y-o-y to $25mil due to stabilized electricity costs, which was within our expectations.
- - Read this at SGinvestors.io -
- ADR increased by 8.8% y-o-y to S$179 as all hotels emerged from government contracts and rising international visitor arrivals to 91% of the pre-COVID level. However, RevPAR lagged behind, growing 6.7% y-o-y to S$144, as the occupancy rate contracted by 1.5ppt y-o-y. Some hotels had just exited government contracts and are still ramping up their occupancy.
- We reiterate our BUY recommendation with an unchanged Far East Hospitality Trust target price of S$0.79 and FY24e-25e DPU forecasts of S$4.35 to S$4.45 cents.
The Positives
Mega concerts drove the recovery in leisure.
- - Read this at SGinvestors.io -
- RevPAR for 1Q24 increased by 6.7% y-o-y, reaching 102.9% of the pre-COVID level. We expect RevPAR to maintain at the current level with slight improvement as ADR is expected to trend higher in the face of a stable supply of mid-tier hotels and increasing international visitors (Singapore Tourism Board’s target of 15 mn-16mil for 2024).
- We also foresee an uplift in the occupancy rate with a target of mid-80% in FY24 (pre-COVID: high-80%).
Improved financial position and ready to acquire.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Liu Miao Miao Phillip Securities Research | https://www.stocksbnb.com/ 2024-05-02
Read also Phillip's most recent report:
2024-07-31 Far East Hospitality Trust - RevPAR Continues Trending Up Despite Muted ADR Growth.
Price targets by 2 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