By Singapore Newsroom
SINGAPORE (Feb 15) -- Singapore's Far East Hospitality Trust's fourth-quarter distribution per stapled security fell 13.4% to 0.97 Singapore cents from 1.12 cents a year ago on an influx of supply in the hotel and service-residence market.
Its full-year 2017 DPS was down too - at 3.90 cents compared with 4.33 cents for a 9.9% decline.
Quarterly revenue totalled S$25.7 million ($19.5 million), declining 6.6% from S$27.5 million a year earlier, and for the full year it was S$103.8 million, a 4.8% fall from S$109.1 million.
Net property income for the past quarter was $23.1 million - down about 7% from S$24.9 million. For the year just gone it was down 5.3% at S$93.1 million from S$98.3 million.
"Notwithstanding the influx of new hotels in the fourth quarter the average occupancy of our hotel portfolio remained healthy," Gerald Lee, the chief executive officer of Far East Hospitality Trust's manager, said in the statement. "Our serviced residences, in comparison, were more impacted as demand from the corporate segment remained subdued." However, the operating environment is expected to improve as the supply of new hotel rooms tapers off, he added.
Average occupancy of its hotels was 85.4% in the quarter - down from 86.5% and for serviced residences it was at 78.2%, down from 79.7%.
"The operating environment for hotels is expected to stabilize with major meetings, incentives, conferences and exhibitions and biennial events providing some uplift in 2018," the company said. On the supply front about 750 new rooms are projected to be added to the market in 2018 - representing an increase of 1.1% over the previous year. "The outlook for the serviced residences remains subdued," the company added.
Far East Hospitality Trust comprises of Far East Hospitality Real Estate Investment Trust and Far East Hospitality Business Trust. It owns 12 properties with 2,829 hotel rooms and serviced-residence units valued at approximately $2.38 billion.
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