REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Monday, May 08, 2023

Frasers Hospitality Trust Review @ 8 May 2023

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, distribution and DPS have improved YoY mainly due to an improved environment and the relaxation of travel restrictions. The gross revenue and NPI have surpassed 90% of the pre-COVID level.

Revenue per Available Room

REVPAR has improved for all the countries, which the REVPAR for Singapore, UK and Malaysia have surpassed pre-COVID level.

Related Parties Shareholding

  • REIT Sponsor's Shareholding: ± 10% from median
  • REIT Manager's Shareholding: ± 10% from median
  • Directors of REIT Manager's Shareholding: Above median by 20% or more

Lease Profile

  • Income in SGD/Major Currencies: ± 10% from median
  • WALE: Above median by 20% or more
  • Highest Lease Expiry within 5 Years: Below median by 20% or more; Falls in FY24
  • Weighted Average Land Lease Expiry: ±  Above median by 10% or more

Debt Profile

  • Gearing Ratio: ± 10% from median
  • Cost of Debt: Below median by 10% or more
  • Fixed Rate Debt %: ± 10% from median
  • Unsecured Debt %: Above median by 10% or more
  • WADM: Below median by 20% or more
  • Highest Debt Maturity within 5 Years: ± 10% from median; Falls in FY24
  • Interest Coverage Ratio:  ± 10% from median

Diversification Profile

  • Top Geographical Contribution: Below median by 20% or more
  • Top Property Contribution: ± 10% from median
  • Top 5 Properties' Contribution: ± 10% from median
  • Top Tenant Contribution: Above median by 20% or more
  • Top 10 Tenants' Contribution: Above median by 20% or more

Key Financial Metrics

  • Property Yield: Below median by 10% or more
  • Management Fees over Operating Distributable Income: Above median by 10% or more; $5.26 distribution for every dollar paid 
  • Operating Distributable Income on Capital: Below median by 10% or more
  • Operating Distributable Income Margin: ± 10% from median
  • Operating Distribution Proportion: 100%

DPU Breakdown

  • TTM DPU Breakdown
    • 100% from Operation
  • TTM DPU = 90% of Distributable Income


  • Downtrend: DPU from Operation, NAV per Unit, Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Relative Valuation

  • P/NAV: Average for 1y, 3y & 5y
  • Dividend Yield: Above +1SD for 1y & 3yl Average for 5y

Author's Opinion

 Favorable Less Favorable
High Directors of REIT Manager's ShareholdingShort WADM
Long WALEHigh Top Tenant & Top 10 Tenants' Contributions
No Majority Lease Expirty within 5 YearsLow Property Yield
Long Weighted Average Land Lease ExpiryNon Competitive Management Fees
Low Cost of DebtLow Operating Distributable Income on Capital
High Unsecured Debt %DPU from Operation Downtrend
Low Top Geographical ContributionNAV per Unit Downtrend
100% Operating Distribution ProportionInterest Coverage Ratio Downtrend
 Property Yield Downtrend
 Operating Distributable Income on Capital Downtrend
 Operating Distributable Income Margin Downtrend

The performance of the company has shown a significant improvement compared to both the previous six months and the same period last year. This positive trend can be attributed to the gradual recovery of travel demand following the COVID-19 pandemic. Additionally, there is no need for refinancing in the second half of the fiscal year, and the fixed-rate debt percentage remains at the median level. Looking ahead, the reopening of China is expected to contribute to the recovery of the travel industry. Moreover, the World Tourism Organization expects that the travel demand will remain strong and recovery is likely to continue throughout the year.

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SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.

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