Far East Hospitality Trust Q3 net property income declines 1% to S$25.9 million

The managers of FEHT maintain a moderate outlook for the stapled trust given the competitive environment

Far East Hospitality Trust (FEHT) posted on Thursday (Oct 30) a net property income of S$25.9 million for the third quarter ended Sep 30, down 1 per cent from S$26.2 million in the same period a year prior.

The managers said that year to date (YTD), the trust’s gross revenue in September 2025 inched down by 0.7 per cent year on year (yoy) to S$81.9 million.

It was mainly due to lower contributions from its Singapore hotels and serviced residences, partially offset by growth in commercial premises income and the newly acquired hotel Four Points by Sheraton Nagoya in Japan.

This resulted in net property income YTD decreasing by 5.4 per cent on the year to S$71.6 million.

Gross revenue for Q3 rose by 5.7 per cent on the year to S$30.4 million, from S$28.7 million. The hotel segment recorded a 7.2 per cent increase in revenue to S$22.9 million, from S$21.4 million the previous year.

Finance expenses decreased by 27.9 per cent yoy to S$5.6 million from S$7.8 million in Q3 2024 as the average cost of debt eased, enhancing income available for distribution.

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As at end-September, the aggregate leverage of FEHT stood at 33.7 per cent, with an interest coverage ratio of 3.3 times. Its weighted average debt to maturity was 2.9 years.

The managers of FEHT have a moderate outlook for the stapled trust, even as visitor arrivals continued to recover in Q3, supported by major international events such as the World Aquatics Championships.

They observed shorter stays being recorded during the period, which led to fewer visitor days, softer room night demand and a more competitive environment.

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“While travel demand remains healthy and further recovery is expected, the pace could be dampened by the strong Singapore dollar and continued macroeconomic uncertainty,” they added.

Stapled securities of FEHT ended flat at S$0.615 on Thursday.