Frasers Hospitality Trust's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Despite a slight increase in gross revenue, NPI has declined slightly due to higher tax and property expenses. However, income available for distribution and DPS have declined significantly due to higher finance costs.

Revenue per Available Room

RevPAR has experienced an uplift for properties located in Australia, Japan, and Malaysia, while witnessing a decrease for those in Singapore and the U.K.

Related Parties Shareholding

The directors of REIT manager hold a high proportion.

Lease Profile

WALE is long and has no major lease expiry within 4 years.

Debt Profile

The cost of debt is relatively low and the unsecured debt proportion is high. However, WADM is relatively short and there is a concentrated debt maturity in FY25.

Diversification Profile

The portfolio is geographically diversified but concentrated in terms of properties and tenants.

Key Financial Metrics

100% of the distribution is from operation, however operating distributable income on capital is low.

DPU Breakdown

• TTM Distribution  Breakdown:
• 100%from Operation
• TTM Distribution = 90% of Distributable Income

Trends

• Uptrend: DPU from Operation, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin
• Slight Downtrend: Adjusted Interest Coverage Ratio
• Downtrend: NAV per Unit

Relative Valuation

• Dividend Yield - Average for 1y & 5y; Above +1SD for 3y
• P/NAV - Below -1SD for 1y; Average for 3y & 5y

Author's Opinion

Compared to the previous half-year, despite improvement in gross revenue, NPI has declined due to an increase in property tax and the absence of a one-off reversal of impairment loss. This, along with higher finance costs, has led to a reduction in both distributable income and DPU. Regarding debt, there is an upcoming maturity of 17% in the next half-year period.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.