Frasers Hospitality Trust's ANA Crowne Plaza Kobe (Photo: Frasers Hospitality Trust)

Frasers Hospitality Trust (FHT) has warned that it’s performance for the financial year ended 30 September 2020 will be “materially and adversely impacted” by the COVID-19 pandemic.

An annual valuation of FHT’s portfolio, which is currently ongoing, could also further weigh on its total returns for FY2020.

Two of the trust’s portfolio, namely Ibis Styles London Gloucester Road and The Westin Kuala Lumpur, continue to be temporarily closed due to weak market conditions.

And FHT’s income available for distribution for FY2020 is expected to decline by 60% to 70% from the SGD83.9 million (USD61 million) reported for the financial year ended 30 September 2019.

Meanwhile its distribution per stapled security for FY2020 is expected to decline by 65% to 75% from the 4.41 cents recorded for FY2019.

As such, FHT expects to record unrealised fair value losses for its portfolio for FY2020 from the SGD51.8 million reported in FY2019.

However, the unrealised fair value losses will not have any impact on FHT’s distributable income, it emphasised.

“The managers wish to reiterate that FHT continues to have adequate liquidity to meet its operational needs and financial commitments”, it said.

“Amidst the uncertain market conditions, the managers will continue to exercise prudence in their capital and cash flow management”, the trust added.

FHT’s FY2020 unaudited financial results will be released after the close of trading on 30 October 2020.

It was last done on the SGX at SGD0.43.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a six-digit portfolio comprising mainly of SGX, and NASDAQ listed equities. He founded REITsWeek in 2013.