Far East Hospitality Trust Q3 net property income up 6.3% at S$27.6 million

[SINGAPORE] Far East Hospitality Trust (FEHT) on Thursday (Oct 29) posted a third-quarter net property income (NPI) of S$27.6 million. This was a 6.3 per cent rise from the S$25.9 million recorded in the previous corresponding period.

The stapled group attributed this increase to higher gross revenue, which stood at S$32.6 million, up 7.2 per cent from S$30.4 million in Q3 2025.

The growth in revenue was mainly driven by stronger performance at Four Points by Sheraton Nagoya, which was supported by demand from the Asian Games 2026. Four Points by Sheraton Nagoya was one of the contracted hotels for the event.

FEHT’s hotel portfolio’s gross revenue increased 9.2 per cent on the year to S$25 million, from S$22.9 million.

Within its hotel portfolio, Japan’s hotel revenue rose 71.7 per cent to S$4.6 million in Q3 2026, up from S$2.7 million in the year-ago period.

Revenue per available room for its Japanese hotel portfolio rose 48.7 per cent to 12,502 yen (US$79), from 8,409 yen in Q3 2025.

The Singapore hotels’ revenue grew 0.9 per cent to S$20.4 million, from S$20.2 million the year before.

“Singapore’s tourism demand remained soft in Q3 2026, with visitor arrivals and visitor days declining 1.8 per cent and 5.1 per cent year on year, respectively,” noted the stapled group’s managers.

Revenue per available room for the Singapore portfolio stood at S$148, unchanged from the previous year.

The serviced residence portfolio’s Q3 revenue grew 5 per cent to S$3 million, from S$2.9 million in the previous corresponding period.

Meanwhile, revenue from commercial premises and other income dipped 1.2 per cent to S$4.5 million, from S$4.6 million previously.

Finance expenses declined 16 per cent year on year, mainly due to lower average cost of debt.

As at Sep 30, the average cost of debt was 2.3 per cent, down from 3.2 per cent a year ago.

Together with higher NPI, the lower finance expenses contributed to a 6.3 per cent increase in income available for distribution to S$20.2 million, from S$19 million the previous year.

Aggregate leverage stood at 33.2 per cent as at end-September, while total debt was S$781.5 million.

The managers expect FEHT’s portfolio to benefit from increased business travel, meetings, incentives, conferences and exhibitions, as well as events.

Some events highlighted by the managers include the recently concluded Formula 1 Singapore Grand Prix, as well as the upcoming BTS world tour in December.

“Singapore continues to appeal as a stable and trusted base for companies amid ongoing geopolitical uncertainty,” they noted.

Stapled securities of FEHT closed 1 per cent or S$0.005 higher at S$0.50 on Wednesday.