Singapore-listed Far East Hospitality Trust (SGX:Q5T) announced on 24 February that it has achieved a distribution per stapled security (DPS) of 1.17 Singapore cents for its 4Q 2015, a fall of 8.6% as compared to the 1.28 cents posted in the corresponding period from the last financial year.
The trust posted gross revenue of SGD28.9 million and net property income (NPI) of SGD26.3 million for the period, representing declines of 4.7% and 4.9% respectively.
For the full year ended 31 December 2015, gross revenue was SGD114.6 million while net property income was SGD103.7 million - both figures representing a dip of 5.8% respectively from the previous financial year.
Income available for distribution was SGD82.2 million, which translates to a DPS of 4.60 cents for FY 2015, 10.5% lower from the 5.14 cents posted in the previous financial year.
“Corporate travel remained soft in 2015 as companies scaled back on their travel budgets in view of the uncertain economic outlook”, said Gerald Lee, CEO of the trust’s REIT component’s manager. “We also faced competition from new and existing hotels”, he added.
“Going forward, we expect the operating environment to remain competitive. To improve the quality and competitiveness of our properties, we have embarked on several asset enhancement programmes which we will carry through this year”, said Lee.
Units of Far East Hospitality Trust are currently listed on the Singapore Exchange at SGD0.64.