Frasers Hospitality Trust NPI down 6.7% to $29.4m in Q4

Only the Singapore and Germany properties performed well across the firm's portfolio.

Frasers Hospitality Trust (FHT) saw its net property income slip 6.7% YoY to $29.4m in Q4 FY2018 from $31.5m a year ago, an announcement revealed. Revenue also fell 6.9% YoY to $38.7m from $41.6m.

Distributable income dipped 3.4% to $23m whilst distribution per stapled security (DPS) was down 4.8% to $0.122.

The firm noted that the declines were dragged by weaker portfolio performance except for their Singapore and Germany properties.

In Australia, performance was softer amidst a more competitive trading environment in Sydney, the firm said. Despite this, Novotel Sydney Darling Square continued to perform better YoY with the return of its full room inventory compared to last year when there was renovation.

Meanwhile, FEH’s Singapore portfolio remained resilient on the back of increased room revenue and operating efficiencies from Fraser Suites Singapore. Maritim Hotel Dresden also reported higher room revenue, underpinned by healthy gains in revenue per available room (“RevPAR”).

“In addition, our Japan property reported steady performance despite the impact from the recent typhoons,” Frasers Hospitality Asset Management CEO Eu Chin Fen said. “Going forward, we will proactively pursue opportunities to optimise our portfolio and strengthen the competitive positioning of our properties to create value for our stapled securityholders.”

The firm believes that their hotel performance will flourish in the near tearm on the back of demand fuelled by continued growth in tourist arrivals and limited room supply growth.

“These should lead to improved occupancy levels, potentially allowing hotels to increase rates,” they explained.