The influx of visitors from the Singapore Airshow last February partially contributed to higher earnings.
Far East Hospitality Trust opened the year on stable financial footing as net property income rose 4% YoY to $23.01m in Q1, according to the company's financial statement.
Property expenses also inched up 2.5% YoY to $2.72m as retail and office expenses surged 21.1% over the same period.
Gross revenue rose 3.8% YoY to $25.7m amidst an increase in master lease rental from a mix of hotel and serviced residences (SR).
The hotel segment continued to dominate the portfolio as revenue per available room (RevPAR) grew 3.3% to $139 in Q1 due to an expansion in average occupancy and average daily rate of 1.5pp and 1.6% respectively.
“Major MICE and biennial events should provide some uplift to the performance of the hotel portfolio, which generates two-thirds of the REIT’s revenue,” the company said. “In addition, the completion of the renovation of Orchard Parade Hotel as well as the acquisition of Oasia Hotel Downtown will contribute positively to the REIT’s performance.”
The SR segment also improved although it was unable to keep up pace with the hotel business. Average occupancy of SRs improved 10.1pp but ADR edged 5.8% lower. “As corporate and relocation activities remain muted, the operating environment for SRs continue to be competitive in the near term,” the company forecasted.
Revenue from the retail and office spaces also declined 3.9% YoY to $5.5m in Q1 mainly due to lower rental rates and more competitive conditions.
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