The hotel segment offset the weaker serviced residences arm.
The net property income (NPI) of Far East Hospitality Trust rose by 11.2% to $25.74m in Q2, according to a company filing with the SGX, on the back of the addition of Oasia Hotel Downtown to the company portfolio.
Income available for distribution edged up 5.8% YoY to $19.0m. Distribution per Stapled Security also rose by 4.1% to 1.01 Singapore cent.
Far East Hospitality Trust’s hotels witnessed a year-on-year improvement with RevPAR of the hotel portfolio rising 6.9% YoY to $143 in Q2 amidst higher average occupancy and average daily rates (ADR).
However, finance costs also grew by over a third at 35.8% YoY to $6.5m because of additional loan drawdown to acquire the new property.
Similarly, the company’s serviced residence portfolio continued to witness weak demand with average daily rate (ADR) falling to 4.5% to $168 in Q2.
“Far East H-Trust’s serviced residences, which mainly serve corporations, are expected to experience a continued lag in demand, as corporate and relocation activities remain subdued,” the company said in a statement. “To ensure the portfolio’s competitiveness, the REIT Manager will continue to focus on driving the performance of each property, and improving the value of its offerings.”
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