- Frasers Hospitality Trust announced 2HFY24 gross revenue of S$69.2mil (+13.6% y-o-y) and net property income (NPI) of S$47.8mil (+5.5% y-o-y). This brings full-year revenue to S$132.5mil (+7.6% y-o-y) and NPI to S$92.5mil (+2.1% y-o-y).
- - Read this at SGinvestors.io -
FY24 results behind estimates.
- Full-year distributable income declined 7.5% y-o-y to S$48.3mil due to higher interest cost (full year +c.25% y-o-y) and higher withholding tax in Australia, due to the non-qualification of Frasers Hospitality Trust’s withholding tax structure in Australia. This resulted in a 0.8% y-o-y decline in Frasers Hospitality Trust's DPU for 2HFY24 to 1.1682 cents and 7.5% y-o-y decline in full-year DPUs to 2.2592 cents – behind our estimates.
- - Read this at SGinvestors.io -
- Capital management remains stable with low gearing of 34.9% (-30bps q-o-q) and average cost of debt of 3.5% (flat q-o-q). ICR ratio remains flat q-o-q at 3.0x.
Our thoughts.
FHT’s year-end valuation comes as a proxy to year-end valuations of S-REIT hotel peers.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Geraldine WONG DBS Group Research | Derek TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-11-13
Previous report by DBS:
2023-11-08 Frasers Hospitality Trust - Two Leaps Forward With Return Of MICE.
Price targets by other brokers at Frasers Hospitality Trust Target Prices.
Listing of research reports at Frasers Hospitality Trust Analyst Reports.
Relevant links:
Frasers Hospitality Trust Share Price History,
Frasers Hospitality Trust Announcements,
Frasers Hospitality Trust Dividends & Corporate Actions,
Frasers Hospitality Trust News Articles
