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FHT’s net property income grows 18.4%

income grows

Coupled with lower operating cost due to optimised cost management, net property income grew 18.4 per cent on the year to $22.90 million for the half year, from $19.29 million

Frasers Hospitality Trust’s distribution per stapled security (DPS) soared to 0.7039 Singapore cent from 0.179 cent a year ago for H1 FY2022 ended Mar 31.

Gross revenue was up 10.4 per cent year on year to $31.85 million for the half-year period, from $28.82 million a year ago.

This came on the back of improvements in its operating environment following the relaxation of travel restrictions and widespread vaccination.

Coupled with lower operating cost due to optimised cost management, net property income grew 18.4 per cent on the year to $22.90 million for the half year, from $19.29 million.

Distributable income rose 75 per cent year on year to $10.91 million, from $6.21 million.

The distribution will be paid out on Jun 29, after the record date on May 11.

Eu Chin Fen, chief executive of FHT, said the emergence of the Omicron variant and the ensuing surge in Covid-19 cases globally in earlier months this year dampened travel sentiments and slowed the recovery pace of its portfolio in the second quarter as travel restrictions re-tightened.

We believe that the recovery trajectory will resume following the retreat of the Omicron wave as countries transit to the endemic phase with reopened borders and lifted restrictions. However, we anticipate the recovery trajectory to remain bumpy due to headwinds from inflationary pressures as a result of continued supply chain disruptions, rising energy, commodity and labour costs, leading to the potential risk of an economic slowdown, Chin Fen said.

The trust’s Singapore portfolio recorded a higher average daily rate (ADR) and occupancy rate year on year, which in turn lifted revenue per available room (RevPAR) by 15.3 per cent in H1. This was mainly supported by InterContinental Singapore’s government quarantine business from October to December 2021 and Fraser Suites’ long-stay business.

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