Far East Hospitality Trust declared a distribution per unit of 1.2 cents for 3QFY2015 ended September, an improvement of 0.04 cents over 2QFY2015, and a decline of 0.12 cents over 3QFY2014.
Gross revenue fell 4.8% to $29.7 million, owing to the lower revenue from its hotels and serviced residences businesses. However, the retail and office spaces posted a 3.8% increase in revenue to $6.1 million. Correspondingly, net property income fell 4.6% to $26.9 million.
The hotels business has been hit by reduced demand for corporate travel, the weak leisure demand arising from the strong Singapore currency and the persistent haze situation. Occupancy rate of the hotel portfolio remained stable at 87.4% in the quarter, though the average daily rate declined 6.0%, and brought revenue per available room down by 5.6% as well.
Demand for serviced residences accommodation continued to remain weak, and average occupancy fell two percentage points, while ADR fell 7.2%. Revenue per available unit in turn fell 9.2% to $209.
Distributable income declined 8% to $21.6 million in the quarter ended September, due to a 20.6% increase in finance costs.
Far East says its operating environment is expected to remain competitive with the new supply of hotel rooms coming onboard, but it expects the initiatives by the government to position Singapore as a destination and aviation hub to benefit the tourism sector and boost visitor arrivals.
Far East’s shares closed unchanged at 67 cents on Nov 2.
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Gross revenue fell 4.8% to $29.7 million, owing to the lower revenue from its hotels and serviced residences businesses. However, the retail and office spaces posted a 3.8% increase in revenue to $6.1 million. Correspondingly, net property income fell 4.6% to $26.9 million.
The hotels business has been hit by reduced demand for corporate travel, the weak leisure demand arising from the strong Singapore currency and the persistent haze situation. Occupancy rate of the hotel portfolio remained stable at 87.4% in the quarter, though the average daily rate declined 6.0%, and brought revenue per available room down by 5.6% as well.
Demand for serviced residences accommodation continued to remain weak, and average occupancy fell two percentage points, while ADR fell 7.2%. Revenue per available unit in turn fell 9.2% to $209.
Distributable income declined 8% to $21.6 million in the quarter ended September, due to a 20.6% increase in finance costs.
Far East says its operating environment is expected to remain competitive with the new supply of hotel rooms coming onboard, but it expects the initiatives by the government to position Singapore as a destination and aviation hub to benefit the tourism sector and boost visitor arrivals.
Far East’s shares closed unchanged at 67 cents on Nov 2.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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