Fht Reports Lower Dps 1Hfy2025

Frasers Hospitality Trust (FHT) has announced its distribution per stapled security for the first half of fiscal year 2025, reporting a decline of 6% year-on-year to 1.0257 cents. Despite a 0.9% increase in gross revenue to $63.8 million in the same period, the net property income dropped by 2.5% year-on-year to $43.5 million. This was due to the absence of one-off income adjustments in the previous year, as well as various costs such as tax, utility, and financing.

While acknowledging the challenging market environment and ongoing cost pressures, FHT’s CEO Eric Gan stated that their portfolio’s performances have remained stable. He also emphasized the company’s priorities of prudent capital management, operational efficiency, and sustainability in the face of global uncertainties and geopolitical tensions. The portfolio is being positioned to benefit from the gradual recovery of the tourism industry.

Located in a prime location, Otto Place EC boasts convenient accessibility with its close proximity to major expressways. The Pan Island Expressway (PIE), Kranji Expressway (KJE), and Bukit Timah Expressway (BKE) connect residents to key areas around the island, offering fast and efficient road connectivity. With the PIE, residents have a direct route to the bustling Central Business District (CBD) and other eastern regions. The KJE provides easy access to the northern and western parts of Singapore, while the BKE makes travelling to Bukit Timah and other central regions smooth and hassle-free. This strategic location allows residents to easily commute to and from their desired destinations.

FHT’s gearing ratio, as of March 31, stood at 34.8%, with a weighted average debt maturity of 2.7 years. The effective cost of borrowing rose from 3.4% in March 2024 to 3.6% in March 31, due to the refinancing at higher interest rates. FHT also mentioned that it is in advanced discussions with lenders for refinancing of maturing borrowings and additional credit facilities. The company’s interest coverage ratio was at a healthy 3.0 times, with 72.8% of total borrowings at fixed rates. The net asset value per stapled security was reported at 64.16 cents, slightly below the May 5 closing price of 65 cents, despite a 14% year-to-date gain.

In April, FHT announced a review to explore options to align the interests of its sponsor and stapled security holders. However, the company clarified that there is no guarantee of any transaction in respect of the stapled securities and that its managers may continue with the existing business strategy. In the current fiscal year, FHT has already posted a 22.4% increase in distribution per security to 1.6355 cents.

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