Far East Hospitality Trust Reports 40% DPS Growth For H1

July 29, 2022 – Far East Hospitality Trust recorded gross revenue of S$41.0 million for the half year ended 30 June 2022. Net property income grew 3.5% year-on-year to S$37.5 million despite the disposal of Central Square.

Cost was lower mainly due to reduced financing cost following the repayment of loans from divestment proceeds.

As a result, income available for distribution increased 14.4% YoY to S$29.0 million.The REIT Manager declared a distribution of S$30.6 million to Stapled Securityholders, translating to a DPS of 1.54 cents for 1H 2022, a growth of 40.0% compared to the same period last year.

The divestment of Central Square, which was completed on 24 March 2022, has helped to reduce gearing and provide greater financial flexibility for Far East H-Trust. The REIT Manager currently intends to distribute a portion of the divestment gains, expected to be approximately S$8 million2 per year over three years, based on the highest historical annual NPI of Central Square achieved since IPO.

This initiative will allow the REIT Manager to return a portion of divestment gains and supplement the DPS while exploring new yield accretive investment opportunities.

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