Fht Reports Lower Dps 1Hfy2025
Frasers Property Q2 net profit falls 32.1% to $77.9 million, mulls options for …
Frasers Hospitality Trust (FHT) has announced a distribution per stapled security of 1.0257 cents for its 1HFY2025 ended March 31. This is down 6% from the same period last year. Gross revenue for the same period was up 0.9% year-on-year to $63.8 million, but net property income declined by 2.5% to $43.5 million. This was due to the absence of one-off income adjustments in the previous year and costs ranging from tax to utilities to financing.
Despite these challenges, FHT CEO Eric Gan says that the performance of the portfolio remained relatively stable. The company is focused on prudent capital management, operational efficiency, and sustainability in the face of ongoing macroeconomic uncertainties and geopolitical tensions. Gan adds that FHT is poised to benefit from the gradual recovery in global tourism.
As of March 31, FHT’s gearing stood at 34.8%, with a weighted average debt maturity of 2.7 years. Its effective cost of borrowing rose from 3.4% in March 2024 to 3.6% in March 31, due to refinancing at higher interest rates. FHT is currently in advanced discussions with lenders to refinance maturing borrowings and secure additional credit facilities.
FHT’s interest coverage ratio was 3.0 times, with 72.8% of total borrowings on fixed rates. The company’s net asset value per stapled security was 64.16 cents, which is lower than its closing price of 65 cents on May 5, as the stock has seen a 14% gain year-to-date.
On April 23, FHT announced that it is conducting a review to explore options to align the interests of its sponsor and stapled security holders. However, there is no certainty or assurance that any transaction will arise, and the managers may decide to continue with FHT’s existing business strategy.
In related news, FHT also reported a 22.4% increase in FY2022 distribution per stapled security to 1.6355 cents and announced the appointment of a new CEO for Frasers Hospitality. The company’s parent, Frasers Property, also made other key executive changes. On top of that, Frasers Property offers 70 cents to privatize FHT, and its Q2 net profit fell by 32.1% to $77.9 million, as it mulls over options to boost its financial position.
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This story first appeared on The Edge Singapore.