Far East Hospitality Trust - UOB Kay Hian 2024-08-05: 1H24 Growth From Catch-up In Occupancy

• Far East Hospitality Trust (SGX:Q5T)’s low aggregate leverage of 30.8% provides ample debt headroom for acquisitions locally and gateway cities overseas. It provides 2024 distribution yield of 6.4%. Its low P/NAV of 0.68x is unwarranted given good corporate governance and a strong sponsor.
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Hotels: Occupancy caught up with recovery in visitor arrivals.

• Occupancy improved 5.6ppt y-o-y to 80.4% as hotels that exited government contracts in 2023 continued to ramp-up.
• Oasia Hotel Novena and Village Hotel Albert Court exited government contracts in Oct 23 and Dec 23 respectively. Average daily rate (ADR) has normalised to S$172, which is similar to last year. RevPAR for hotels grew 6.0% y-o-y to S$139 in 2Q24.

Serviced Residences: Occupancy and ADR improved with shift to short stay.

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• Demand was predominantly derived from the services, banking & finance, electronics & manufacturing and oil & gas industries.

Increased contributions from commercial premises.

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Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-02-18 Far East Hospitality Trust - Continued Recovery Driven By New Attractions & MICE Events.

Previous report by UOB:
2024-11-04 Far East Hospitality Trust 3Q24 - Healthy Seasonal Strength Driven By Chinese Tourists.

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 Dividend Payout Dates & Corporate Actions,
Far East Hospitality Trust News