Far East Hospitality Trust · SGX:Q5T
Far East Hospitality Trust — FY2023 Earnings Presentation
41 slides from Far East Hospitality Trust's earnings presentation, Feb 14, 2024
Slide 1: 2H / FY 2023 Results Presentation
2H / FY 2023 Results Presentation 14 February 2024
Slide 2: Important Notice
Important Notice Information contained in this presentation is intended solely for your personal reference and is strictly confidential. The information and opinions in this presentation are subject to change without notice, its accuracy is not guaranteed and it may not contain all material informat
Slide 3: Contents
Contents ▪ Financial Highlights ▪ Portfolio Performance ▪ Tenant Mix Revitalisation ▪ Accolades & Corporate Governance Highlights ▪ Outlook 3
Slide 4: Financial Highlights
Financial Highlights Fy] oseratry HOSPITALITY TRUST
Slide 5: Executive Summary for 2H 2023 – Performance vs LY
Executive Summary for 2H 2023 – Performance vs LY 2H 2023 2H 2022 Variance S$’000 S$’000 % Gross Revenue 54,767 42,581 28.6 Hotels 40,964 30,011 36.5 Serviced Residences (“SR”) 5,693 5,024 13.3 Commercial Premises 8,110 7,546 7.5 Net Property Income 49,771 39,874 24.8 Income Available for Distributi
Slide 6: Executive Summary for 2H 2023 – Performance vs LY
Executive Summary for 2H 2023 – Performance vs LY 2H 2023 2H 2022 Variance S$’000 S$’000 % Distribution to Stapled Securityholders 43,510 34,443 26.3 comprises: - from taxable income 39,299 29,665 32.5 - from tax-exempt income - 597 (100.0) - from other gains 4,211 4,181 0.7 Distribution per Stapled
Slide 7: Executive Summary for FY 2023 – Performance vs LY
Executive Summary for FY 2023 – Performance vs LY FY 2023 FY 2022 Variance S$’000 S$’000 % Gross Revenue 106,805 83,579 27.8 Hotels 79,562 58,511 36.0 Serviced Residences (“SR”) 11,087 10,272 7.9 Commercial Premises 16,156 14,796 9.2 Net Property Income 98,741 77,329 27.7 Income Available for Distri
Slide 8: Executive Summary for FY 2023 – Performance vs LY
Executive Summary for FY 2023 – Performance vs LY FY 2023 FY 2022 Variance S$’000 S$’000 % Distribution to Stapled Securityholders 81,911 65,024 26.0 comprises: - from taxable income 73,700 58,260 26.5 - from tax-exempt income - 597 (100.0) - from other gains 8,211 6,167 33.1 Distribution per Staple
Slide 9: Progressive Recovery in DPS
Progressive Recovery in DPS FY 2023 DPS has climbed above FY 2019 level 4.50 10.0% DPS (Singapore Cents) 1 Onset of COVID-19. 4.09 Master lease structure 9.0% 4.00 3.81 2.17 1 provided downside 1.99 protection. 1 8.0% 3.50 3.27 1 1 7.0% 1.73 3.00 2.63 6.0% 2.50 2.41 6.2% 1.53 1.38 5.0% 5.1% 5.3% 2.0
Slide 10: Portfolio Valuation
Portfolio Valuation Fair value gain1 in investment properties of S$59.2 million in FY2023 2,510 +2.6% 2,500 2,447 Millions (S$) 348 +1.7% 342 2,000 1,500 2,105 2,162 +2.7% 1,000 500 0 31 Dec 2022 31 Dec 2023 Hotels SRs 1 Based on the differences between the carrying amount (including capitalised cap
Slide 11: Healthy Balance Sheet with Prudent Capital Management
Healthy Balance Sheet with Prudent Capital Management One of the lowest geared S-REITs at 31.3% aggregate leverage As at Debt Maturity Profile 31 Dec 2023 (As at 31 Dec 2023) (S$’million) Total Debt S$738.6m 25% Available Revolving Facility S$275.0m 2 188 22% 21% 2 Aggregate Leverage 31.3% 162 157 1
Slide 12: Prudent Interest Rate Management
Prudent Interest Rate Management Interest Rate Sensitivity Support to cushion effects of higher interest rates • 42.6% of borrowings are on fixed rates. • On 27 March 2023, the REIT Manager received • A 50 bps increase in interest rate on variable an additional incentive fee of S$18.0 million from r
Slide 13: Portfolio Performance
Portfolio Performance Fy] oseratry HOSPITALITY TRUST
Slide 14: Portfolio Performance 2H 2023 – Hotels
Portfolio Performance 2H 2023 – Hotels Average Occupancy Average Daily Rate Revenue Per Available Room (ADR) (RevPAR) % $ $ +2.6 pp +16.1% +19.9% 100.0 180 180 171 150 150 80.0 79.1 81.7 147 140 120 120 60.0 116 90 90 40.0 60 60 20.0 30 30 0.0 0 0 2H 2022 2H 2023 2H 2022 2H 2023 2H 2022 2H 2023 ▪ Oc
Slide 15: Portfolio Performance FY 2023 – Hotels
Portfolio Performance FY 2023 – Hotels Average Occupancy Average Daily Rate Revenue Per Available Room (ADR) (RevPAR) % $ $ +6.3 pp +36.1% +47.8% 100.0 180 180 170 150 150 80.0 80.1 73.7 120 120 136 60.0 125 90 90 92 40.0 60 60 20.0 30 30 0.0 0 0 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 ▪ Occ
Slide 16: 5-Year Portfolio Performance - Hotels
5-Year Portfolio Performance - Hotels Revenue Per Available Room $160 147 147 141 140 2H 2023 $140 133 138 $120 116 April 2022 Reopening $100 of borders $80 79 67 60 $60 64 51 $40 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 2H 2021 1H 2022 2H 2022 1H 2023 2H 2023 ▪ Since the reopening of
Slide 17: Portfolio Performance 2H 2023 – Serviced Residences
Portfolio Performance 2H 2023 – Serviced Residences Average Occupancy Average Daily Rate Revenue Per Available Unit (ADR) (RevPAU) % $ $ +0.9 pp +9.5% +10.7% 100.0 300 300 87.4 250 267 250 80.0 86.5 244 234 200 200 211 60.0 150 150 40.0 100 100 20.0 50 50 0.0 0 0 2H 2022 2H 2023 2H 2022 2H 2023 2H 2
Slide 18: Portfolio Performance FY 2023 – Serviced Residences
Portfolio Performance FY 2023 – Serviced Residences Average Occupancy Average Daily Rate Revenue Per Available Unit (ADR) (RevPAU) % $ $ +0.3pp +16.6% +17.0% 100.0 (0.5)pp 300 300 88.3 +15.3% +14.7% 87.8 260 87.5 250 250 80.0 226 229 200 223 200 199 60.0 195 150 150 40.0 100 100 With VRCQ 1 With VRC
Slide 19: 5-Year Portfolio Performance – Serviced Residences
5-Year Portfolio Performance – Serviced Residences Revenue Per Available Unit $240 234 2H 2023 224 $220 211 +23.8% $200 189 182 182 189 2H 2019 $180 171 174 $160 166 143 153 $140 138 $120 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 2H 2021 1H 2022 2H 2022 1H 2023 2H 2023 ▪ The SR portfol
Slide 20: FY 2023 Revenue Contribution – Hotels
FY 2023 Revenue Contribution – Hotels By Market Segment By Country of Residence Europe, 25.2% N Asia, 22.2% Corporate, 48.8% SE Asia, 21.8% Leisure/Independent, 51.2% Oceania, 12.4% S Asia, 8.0% N America, 6.9% Others, 3.5% ▪ For the year, revenue contribution from the Leisure segment has grown at a
Slide 21: FY 2023 Revenue Contribution – Serviced Residences
FY 2023 Revenue Contribution – Serviced Residences By Market Segment By Industry Services, 28.6% Banking & Finance, 23.0% Corporate, 67.3% Electronics & Manufacturing, 18.7% Oil & Gas, 9.7% Leisure / Independent, 32.7% Logistics, 4.1% FMCG, 2.2% Others, 13.7% ▪ For FY 2023, revenue contribution by t
Slide 22: Breakdown of Gross Revenue – Total Portfolio
Breakdown of Gross Revenue – Total Portfolio FY 2022 FY 2023 Serviced Serviced Residences Residences 12.3% 74.5% 10.4% 70.0% 17.7% 15.1% Hotels Commercial Hotels Commercial 22
Slide 23: Gross Revenue Mix
Gross Revenue Mix Contribution from variable rent grew ~6.0x over the prior year, contributing 25% or S$27.1 million of overall revenue, higher than FY 2019 Millions (S$) S$106.8m Revenue on par with FY 2019 S$106.8m 18.0 17% 16.2 15% S$82.2m S$75.8m S$76.8m 25.3 24% 14.2 17% 27.1 25% 13.3 18% 12.1
Slide 24: Tenant Mix Revitalisation
Tenant Mix Revitalisation Fy] oseratry HOSPITALITY TRUST
Slide 25: Tenant Mix Revitalisation – Orchard Rendezvous Hotel
Tenant Mix Revitalisation – Orchard Rendezvous Hotel Natureland Provision of ancillary spa services to hotel guests 25
Slide 26: Tenant Mix Revitalisation – Rendezvous Hotel Singapore
Tenant Mix Revitalisation – Rendezvous Hotel Singapore Reverie Supporting all-day-dining operations of Hotel 26
Slide 27: Tenant Mix Revitalisation – Regency House
Tenant Mix Revitalisation – Regency House SIP Wine Bistro Successful change of use to restaurant and activation of outdoor refreshment areas 27
Slide 28: Tenant Mix Revitalisation – Village Hotel Changi
Tenant Mix Revitalisation – Village Hotel Changi Atelier Rooftop restaurant providing events collaboration with hotel 28
Slide 29: Accolades & Corporate Governance Highlights
Accolades & Corporate Governance Highlights
Slide 30: Accolades and Corporate Governance Highlights
Accolades and Corporate Governance Highlights Singapore Governance and Transparency Index 2023 (“SGTI”) (REITs and Business Trust) Ranked 2nd • In August 2023, FEHT was ranked 2nd out of 43 REITs and Business Trusts in the SGTI. • Fifth consecutive year being placed amongst the top 10 ranked REITs a
Slide 31: Accolades and Corporate Governance Highlights
Accolades and Corporate Governance Highlights Securities Investors Association (Singapore) (“SIAS”) Investors’ Choice Awards 2023 Shareholder Communications Singapore Corporate Governance Excellence Award Award Winner Winner • FEHT emerged as winner for the Shareholder • FEHT emerged as the winner f
Slide 32: Outlook
Outlook FAR EAST HOSPITALITY TRUST
Slide 33: Increasing Visitor Arrivals to Singapore
Increasing Visitor Arrivals to Singapore Visitor Arrivals (2019-2023) • In the final quarter of 2023, seasonality impact influenced visitor arrivals, resulting in a 10.3% decline quarter-on-quarter to a total of 3.5 million arrivals or 73% of pre-pandemic levels. ALOS continued to normalise to 3.5 d
Slide 34: Recovery of Air Passengers Numbers
Recovery of Air Passengers Numbers SIA Group Passenger Capacity 92% of SIA's pre-COVID seat capacity • As the main conduit for arrivals into Singapore, airlines’ passenger capacity is a leading indicator for the recovery in cross- border travel. • For 4Q 2023, SIA’s Group passenger capacity was rest
Slide 35: Upcoming Tourism Developments
Upcoming Tourism Developments Rejuvenation of Sentosa Mandai Wildlife Reserve Expansion of the Integrated Resorts • SensoryScape, a two-tiered walkway • A major wildlife and nature heritage • Marina Bay Sands (“MBS”) announced offering a multisensory experience project integrating five zoological pa
Slide 36: Outlook for 2024
Outlook Outlook for 2024 Continuing recovery of the hospitality sector • The United National Tourism expects expects a full recovery of international tourism, supported by remaining pent-up demand, increased air connectivity and a stronger recovery of Asian markets and destinations. • The Singapore
Slide 37: Medium-Term Outlook
Outlook Medium-Term Outlook Growing business hub – Singapore continues to attract foreign investments • Singapore attracted S$12.7 billion in fixed asset investments in 2023, above the medium to long-term annual target of between S$8 billion and S$10 billion set by the Economic Development Board. •
Slide 38: Details of Distribution
Details of Distribution For Period from 1 July to 31 December 2023 Distribution per Stapled Security 2.17 cents Ex-Date 21 February 2024 Book Closure Date 22 February 2024 Distribution Payment Date 21 March 2024 38
Slide 39: Thank You
Thank You For more information please visit https://www.fehtrust.com
Slide 40: Far East H-Trust Asset Portfolio Overview
Far East H-Trust Asset Portfolio Overview Hotels Vibe Hotel Orchard Rendezvous Total / Village Hotel Village Hotel Village Hotel Oasia The Oasia Hotel Singapore Rendezvous Hotel Weighted Albert Court Changi Bugis Hotel Novena Quincy Hotel Downtown Orchard Hotel Singapore Average Mid-tier / Mid-tier
Slide 41: Far East H-Trust Asset Portfolio Overview
Far East H-Trust Asset Portfolio Overview Serviced Residences Village Residence Adina Serviced Apartments Total / Village Residence Hougang Robertson Quay Singapore Orchard Weighted Average Market Segment Mid-tier Mid-tier Upscale NA 1 Hougang Street 91, 30 Robertson Quay, 121 Penang House, Address
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