Far East H-Trust NPI dips 1.4% to $23.2m for Q2

No thanks to lower master lease rental from hotels and residences.

Far East Hospitality Trust’s (Far East H-Trust) distribution per unit (DPU) dipped by 1.4% YoY from $23.5m to $23.2m in Q2.

According to its financial statement, revenue also decreased 1% from $26.1m to $25.9m. This was caused by lower master lease rental from the hotels and serviced residences (SRs).

Far East H-Trust said despite the tighter demand for hotel accommodation, high supply of hotel rooms and soft corporate demand weighed room rates down.

In consequence, Far East H-Trust shifted towards its leisure segment. This raised average occupancy by 1.9 ppt, but it also caused a 3.4% dip in the average daily rate (ADR).

Revenue per available room (RevPAR) for its hotel portfolio also fell 1.3% to S$134.

For its SR segment, occupancy and ADR were 4.5ppt and 0.6% lower YoY, respectively.

This caused revenue per available unit (RevPAU) of its SR portfolio to fall 5.7% to S$177.

Meanwhile, revenue obtained from Far East H-Trust’s retail and office spaces only hiked by 0.5% at $5.8m.

“To ensure its portfolio’s competitiveness, the REIT Manager continues to drive the performance of the assets and selectively upgrade its existing properties. The refurbishment of the guest rooms and club lounge at Orchard Parade Hotel is currently underway,” Far East H-Trust said.

The company is also looking to gain from tourism and airport infrastructure developments.