Singapore-listed Far East Hospitality Trust has recorded a DPS of 1.12 Singapore cents for its 3Q 2016, a fall of 6.7% compared to the 1.20 cents achieved in the corresponding period of 2015.
Gross revenue for the period slipped 5.5% year-on-year to SGD28 million (USD20 million), while net property income fell by 5.8% to SGD25.3 million.
Correspondingly distributable income for the period came in at SGD20.3 million, a fall of 6.0% from the SGD21.6 million recorded in 3Q 2015.
“The performance of our properties continued to be impacted by the softness in corporate demand and increase in room supply”, said Gerald Lee, CEO of the trust’s REIT component’s manager, in a statement on the results.
The trust’s hotel portfolio’s average daily rate (ADR) declined by 6.9% year-on-year despite registering an increase of 1.0 percentage point in average occupancy, and as a result, the hotel portfolio’s revenue per available room (RevPAR) recorded a year-on-year decrease of 5.8% to SGD142.
Revenue received from the trust’s retail and office spaces also declined 4.0% year-on-year to SGD5.8 million in 3Q 2016 on lower occupancy, and lower rental rates.
“Going forward, demand from the leisure segment will continue to drive tourism in Singapore as companies remain prudent in their business travel spend”, said the trust, noting that there will be an addition of about 2,500 new hotel rooms to the Singapore hospitality sector for the rest of 2016.
Units of Far East Hospitality Trust last changed hands on the Singapore Exchange at SGD0.595.