REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Friday, November 11, 2022

Frasers Hospitality Trust Review @ 11 November 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): 14

Key Indicators

Performance Highlight

Gross revenue, NPI, income available for distribution and distribution to stapled security holders have increased yoy due to the relaxation of travel restrictions. 

Revenue per Available Room

REVPAR has improved for all the countries.

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 10%

Debt Profile

  • Gearing ratio: ± 10% from median
  • Cost of debt: Below median for more than 10%
  • Fixed rate debt %: Above median for more than 10%
  • Unsecured debt %: Above median for more than 10%
  • WADM: Below median for more than 20%
  • Highest debt maturity within 5 years: Above median for more than 10%; Falls in 2025
  • 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%; $3.62 distribution for every dollar paid 
  • Distribution on capital: Below median for more than 20%
  • Distribution margin: Below median for more than 20%


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

Relative Valuation

  • Current 52 Weeks Range: 6.9%
  • P/NAV: Below -1SD for 1y & 5y; Below average for 3y
  • Dividend Yield: Above +1SD for 1y; Above average for 3y; Average for 5y

Author's Opinion

 Favorable Less Favorable
High Directors of REIT Manager's ShareholdingShort WADM
Long WALELow Interest Coverage Ratio
No Major Lease Expiry within 5 YearsHigh Top Tenant & Top 10 Tenants Contributions
Long Weighted Average Land Lease ExpiryLow Property Yield
Low Cost of DebtNon Competitive Management Fees
High Fixed Rate Debt %Low Distribution on Capital
High Unsecured Debt %Low Distribution Margin
Well Spread Debt MaturityDPU Downtrend
Low Top Geographical ContributionNAV per Unit Downtrend
 Property Yield Downtrend
 Interest Coverage Ratio Downtrend
 Distribution on Capital Downtrend
 Distribution Margin Downtrend

2H performance has improved a lot compared to the 1H due to border opening and easing of travel restrictions. The international tourist arrivals have shown signs of recovery albeit the APAC region still lagging due to some areas remaining slow to lift the restriction.  Moving forward, FHT performance is expected to recover gradually.

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

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*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.

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