Far East Hospitality Trust · SGX:Q5T
Far East Hospitality Trust — H1 2024 Earnings Presentation
31 slides from Far East Hospitality Trust's earnings presentation, Jul 30, 2024
Slide 1: 1H 2024 Results Presentation
1H 2024 Results Presentation 30 July 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 ▪ Asset Enhancement Initiatives ▪ Outlook 3
Slide 4: Financial Highlights
Financial Highlights Fy] oseratry HOSPITALITY TRUST
Slide 5: Executive Summary for 1H 2024 – Performance vs LY
Executive Summary for 1H 2024 – Performance vs LY 1H 2024 1H 2023 Variance S$’000 S$’000 % Gross Revenue 53,808 52,038 3.4 Hotels 39,671 38,599 2.8 Serviced Residences (“SR”) 5,506 5,393 2.1 Commercial Premises 8,631 8,046 7.3 Net Property Income 49,466 48,970 1.0 Distribution to Stapled Securityhol
Slide 6: Progressive Recovery in DPS
Progressive Recovery in DPS 4.50 10.0% DPS (Singapore Cents) Onset of COVID-19. 4.09 1H 2024 DPS Master lease structure 9.0% 4.00 3.81 2.17 formed ~48% of provided downside protection. FY 2023’s DPS 1.99 8.0% 3.50 1 3.27 1.73 7.0% 3.00 2.63 2 6.0% 2.50 2.41 6.2% 6.2% 1.53 1.38 1 5.0% 5.3% 1.96 2.00
Slide 7: Healthy Balance Sheet with Prudent Capital Management
Healthy Balance Sheet with Prudent Capital Management One of the lowest geared S-REITs at 30.8% aggregate leverage Debt Maturity Profile 1H 2024 (As at 30 Jun 2024) (S$’million) Total Debt S$717.7m Available Revolving Facility S$275.0m 23% 23% 22% 2 2 Aggregate Leverage 30.8% 164 165 157 18% Unencum
Slide 8: Interest Rate Management
Interest Rate Management Navigating the high interest rate environment • With the growing likelihood of interest rate cuts, a lower percentage of total debt (35.9%1) was secured at fixed interest rates. Support to cushion effects of higher interest rates • On 28 July 2023, the REIT Manager announced
Slide 9: Portfolio Performance
Portfolio Performance Fy] oseratry HOSPITALITY TRUST
Slide 10: Portfolio Performance 2Q 2024 – Hotels
Portfolio Performance 2Q 2024 – Hotels Average Occupancy Average Daily Rate Revenue Per Available Room (ADR) (RevPAR) % $ $ +5.6 pp (1.3)% +6.0% 100.0 180 180 175 172 150 150 80.0 80.4 74.8 139 120 120 131 60.0 90 90 40.0 60 60 20.0 30 30 0.0 0 0 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 ▪ For
Slide 11: Portfolio Performance 1H 2024 – Hotels
Portfolio Performance 1H 2024 – Hotels Average Occupancy Average Daily Rate Revenue Per Available Room (ADR) (RevPAR) % $ $ +2.1pp +3.7% +6.4% 100.0 180 180 176 169 150 150 80.0 78.3 80.4 141 120 120 133 60.0 90 90 40.0 60 60 20.0 30 30 0.0 0 0 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 ▪ Occup
Slide 12: Portfolio Performance 2Q 2024 – Serviced Residences
Portfolio Performance 2Q 2024 – Serviced Residences Average Occupancy Average Daily Rate Revenue Per Available Unit (ADR) (RevPAU) % $ $ (2.8) pp +6.8% +3.5% 100.0 300 300 89.6 86.8 250 266 250 80.0 249 223 231 200 200 60.0 150 150 40.0 100 100 20.0 50 50 0.0 0 0 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2
Slide 13: Portfolio Performance 1H 2024 – Serviced Residences
Portfolio Performance 1H 2024 – Serviced Residences Average Occupancy Average Daily Rate Revenue Per Available Unit (ADR) (RevPAU) % $ $ (3.2) pp +4.9% +1.0% 100.0 300 300 88.3 250 266 250 80.0 85.1 253 200 200 224 226 60.0 150 150 40.0 100 100 20.0 50 50 0.0 0 0 1H 2023 1H 2024 1H 2023 1H 2024 1H 2
Slide 14: 1H 2024 Revenue Contribution – Hotels
1H 2024 Revenue Contribution – Hotels By Market Segment By Country of Residence N Asia, 31.6% SE Asia, 23.5% Europe, 18.7% Corporate, 22.7% S Asia, 9.2% Oceania, 8.4% Leisure/Independent, 77.3% N America, 5.8% Others, 2.8% ▪ The absence of revenue from Government contracts resulted in the decrease i
Slide 15: 1H 2024 Revenue Contribution – Serviced Residences
1H 2024 Revenue Contribution – Serviced Residences By Market Segment By Industry Services, 28.8% Banking & Finance, 23.4% Leisure / Independent, 32.3% Electronics & Manufacturing, 18.2% Corporate, 67.7% Oil & Gas, 11.1% Logistics, 4.1% FMCG, 1.4% Others, 13.0% ▪ The Leisure segment contributed 32.3%
Slide 16: Breakdown of Gross Revenue – Total Portfolio
Breakdown of Gross Revenue – Total Portfolio 1H 2023 1H 2024 Serviced Serviced Residences Residences 74.2% 10.4% 10.2% 73.8% 15.5% 16.0% Hotels Commercial Hotels Commercial 16
Slide 17: Asset Enhancement Initiatives
Asset Enhancement Initiatives
Slide 18: Completion of Office Renovation – 5th floor Orchard Rendezvous Hotel
Completion of Office Renovation – 5th floor Orchard Rendezvous Hotel 18
Slide 19: Completion of Façade Painting– Village Residence Robertson Quay
Completion of Façade Painting– Village Residence Robertson Quay 19
Slide 20: Tenant Mix Revitalisation – Rendezvous Hotel Singapore
Tenant Mix Revitalisation – Rendezvous Hotel Singapore Another Bar – Curated by sisters Ethel and Andrea, founders of Oyster Bank and Kiki’s Reserve, this new bar in town aims to be a go-to destination for both locals and tourists 20
Slide 21: Tenant Mix Revitalisation – Village Hotel Bugis
Tenant Mix Revitalisation – Village Hotel Bugis Tarboush – Helmed by celebrity Chef Ammar who has a strong influence on Mediterranean cuisine, this restaurant features refreshing and modern Middle Eastern cuisine 21
Slide 22: Outlook
Outlook FAR EAST HOSPITALITY TRUST
Slide 23: Increasing Visitor Arrivals to Singapore
Increasing Visitor Arrivals to Singapore Visitor Arrivals (2019 – 2Q 2024) 4,779 Avg Quarterly Visitor Arrivals 84% of 2019’s Avg Quarterly Visitor Arrivals • In the second quarter of 2024, 3.9 million visitors arrived in Singapore, reaching approximately 84% of the level seen in the same period in
Slide 24: Recovery of Air Passengers Numbers
Recovery of Air Passengers Numbers SIA Group Passenger Capacity 97% of 2019 levels • As the main conduit for arrivals into Singapore, airlines’ passenger capacity is a leading indicator for the recovery in cross- border travel. • In the second quarter of 2024, Singapore Airlines (“SIA”) Group passen
Slide 25: Upcoming Tourism Developments
Upcoming Tourism Developments Rejuvenation of Sentosa Mandai Wildlife Reserve • SensoryScape, a two-tiered walkway offering a • A major wildlife and nature heritage project multisensory experience connecting Resorts World integrating five zoological parks: the Singapore Sentosa (“RWS”) in the north
Slide 26: Upcoming Tourism Developments
Upcoming Tourism Developments Resorts World Sentosa Marina Bay Sands • Two new zones announced, Minion Land (2025) • Expansion plans comprising of a fourth tower and Super Nintendo World (2025) to be added to consisting of a hotel and a 15,000-seat Universal Studios Singapore. entertainment arena fo
Slide 27: Notable Foreign Direct Investments in Singapore in 2024
Notable Foreign Direct Investments in Singapore in 2024 Notable investments highlight Singapore's appeal as a biomedical, advanced manufacturing and technology hub, driving corporate travel demand • Novartis commits to invest about • Collins Aerospace is relocating its • TSMC-backed Vanguard S$340 m
Slide 28: In Summary
In Summary Positive Tourism and Macroeconomic Environment Outlook Tourism and Infrastructure Macroeconomic Environment • Recovery in visitor arrivals to Singapore • Global economic growth to drive recovery in travel and o Increase of flight capacities and upcoming tourism hospitality developments (i
Slide 29: Thank You
Thank You For more information, please visit https://www.fehtrust.com
Slide 30: 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 31: 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
Far East Hospitality Trust — H1 2024 Earnings Presentation on 6ix