SINGAPORE – Far East Hospitality Trust’s (FEHT) net property income rose 6 per cent year on year to $25.1 million for the first quarter ended March, from $23.7 million in the year-ago quarter.

Gross revenue was up 7.5 per cent to $27.1 million from $25.2 million a year prior as contributions from the hotels and commercial premises segments “continued to grow strongly”, said its managers on April 30.

Growth from these segments more than offset a 2 per cent year-on-year decline in gross revenue contributions from serviced residences, where average occupancy decreased 3.7 percentage points due to the expiration of long-stay contracts in the earlier part of the quarter.

FEHT’s managers said the serviced residences segment has since secured new contracts, which boosted occupancy to a level comparable to the previous year.

Average daily rates for serviced residences grew 2.9 per cent to $265, though revenue per available unit was 1.5 per cent lower at $221.

Within the hotels segment, occupancy declined 1.5 percentage points as some of the portfolio’s hotels exited government contracts in March, October and December 2023.

The managers said these properties had greater flexibility in securing higher average daily rates, resulting in an 8.8 per cent year-on-year increase to $179.

Revenue per available room grew 6.7 per cent to $144 as a result.

As at end-March 2024, total assets were 0.9 per cent lower versus end-2023, while net assets fell 1.4 per cent.

Net asset value per stapled security was 1.5 per cent lower at 9.15 cents versus 9.29 cents as at Dec 31, 2023.

The managers highlighted FEHT as one of the lowest-geared Singapore real estate investment trusts at 31.5 per cent gearing, with a weighted average debt maturity of 3.5 years and interest coverage ratio of 3.5 times.

Citing upcoming tourism developments and data that points to a recovery in both tourism and the macroeconomic environment, the managers said their outlook in these respects was “positive”.

Stapled securities of FEHT closed flat at 61.5 cents on April 30. THE BUSINESS TIMES