REIT-TIREMENT - REITs Investing & Personal Finance

REITs investment & personal finance


Thursday, May 26, 2022

Frasers Hospitality Trust Review @ 26 May 2022

Basic Profile & Key Statistics
  • Main Sector(s): Hospitality
  • Country(s) with Assets: Australia, Singapore, England, Japan, Germany, Malaysia & Scotland
  • No. of Properties (exclude development/associate/fund): 15

Performance Highlight

Gross revenue, NPI and income available for distribution have increased yoy due to easing of COVID-19 restrictions and border re-opening. DPS has increased significantly due to the absence of retention in 1H FY22.

Revenue per Available Room
Besides Australia, REVPAR has improved across the board. The decrease of REVPAR for Australia is due to the end of government quarantine business in Dec 2021 for Novotel Melbourne on Collins and Feb 2022 for Frasers Suites Sydney.

Related Parties Shareholding

  • REIT sponsor's shareholding: ± 10% from median
  • REIT manager's shareholding: Above median for more than 10%
  • Directors of REIT manager's shareholding: Above median for more than 20%

Lease Profile

  • WALE: Above median for more than 20%
  • Highest lease expiry within 5 years: Below median for more than 20%; Falls in 2024
  • Weighted average land lease expiry: Above median for more than 20%

Debt Profile

  • Gearing ratio: Above median for more than 10%
  • Cost of debt: ± 10% from median
  • Fixed rate debt %: ± 10% from median
  • Unsecured debt %: Above median for more than 20%
  • WADM: Below median for more than 20%
  • Highest debt maturity within 5 years: ± 10% from median; Falls in 2023
  • Interest coverage ratio: Below median for more than 20%

Diversification Profile

  • Top geographical contribution: Below median for more than 20%
  • Top property contribution: ± 10% from median
  • Top 5 properties' contribution: ± 10% from median
  • Top tenant contribution: Above median for more than 20%
  • Top 10 tenants' contribution: Above median for more than 20%

Key Financial Metrics

  • Property yield: Below median for more than 20%
  • Management fees over distribution: Above median for more than 20%; $3.39 distribution for every dollar paid 
  • Distribution on capital: Below median for more than 20%
  • Distribution margin: Below median for more than 20%

Trends

  • Downtrend: DPU, NAV per Unit, Property Yield, Interest Coverage Ratio, Distribution on Capital, Distribution Margin

Relative Valuation

  • P/NAV: Above +2SD for 1y; Above +1SD for 3y & 5y
  • Dividend Yield: Average for 1y; Below average for 3y; Below -1SD for 5y

Author's Opinion

 Favorable Less Favorable
High REIT Manager's ShareholdingHigh Gearing Ratio
High Directors of REIT Manager's ShareholdingShort WADM
Long WALELow Interest Coverage Ratio
Well Spread Lease ExpiryHigh Top Tenant & Top 10 Tenants Contributions
Long Weighted Average Land Lease ExpiryLow Property Yield
High Unsecured Debt %Non-Competitive Management Fees
Low Top Geographical ContributionLow Distribution on Capital
 Low Distribution Margin
 DPU Downtrend
 NAV per Unit Downtrend
 Property Yield Downtrend
 Interest Coverage Ratio Downtrend
 Distribution on Capital Downtrend
 Distribution Margin Downtrend

Performance has declined slightly as compared to the previous half-year due to the end of government quarantine business in Australia and the impact of Omicron variant. Moving forward, FHT performance is expected to recover gradually as more countries have re-open borders to travelers. Below is the snapshot of borders opening from the latest presentation:


You could also refer below for more information:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Analysis - List of previous REIT analysis posts


And you could join the following to support my work:

Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs

REIT-TIREMENT Patreon - Support my work and get exclusive contents

REIT-TIREMENT Facebook Page - Support by liking my Facebook Page

REIT Investing Community - Facebook Group where members share and discuss REIT topic


*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage due to the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

No comments:

Post a Comment