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 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