REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Sunday, November 19, 2023

Frasers Hospitality Trust Review @ 19 November 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 continued recovery in global tourism. 

Revenue per Available Room

Overall, REVPAR has improved YoY for all the countries. Besides Australia, all countries have improved REVPAR as compared to 1H FY22. 

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: Below median by 10% or more
  • Cost of Debt: Below median by 10% or more
  • Fixed Rate Debt %: ± 10% from median
  • Unsecured Debt %: Above median by 5% or more
  • WADM: Below median by 10% or more
  • Highest Debt Maturity within 5 Years: Above median by 10% or more; Falls in FY25
  • Interest Coverage Ratio: Above median by 10% or more

Diversification Profile

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

Key Financial Metrics

  • Property Yield: ± 10% from median
  • Management Fees over Operating Distributable Income: Above median by 10% or more; $5.81 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


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

Relative Valuation

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

Author's Opinion

 Favorable Less Favorable
High Directors of REIT Manager's ShareholdingShort WADM
Long WALEConcentrated Debt Maturity
No Majority Lease Expirty within 5 YearsHigh Top Property & Top 5 Properties' Contributions
Long Weighted Average Land Lease ExpiryHigh Top Tenant & Top 10 Tenants' Contributions
Low Gearing RatioNon Competitive Management Fees
Low Cost of DebtLow Operating Distributable Income on Capital
High Unsecured Debt %DPU from Operation Downtrend
High Interest Coverage RatioNAV per Unit Downtrend
Low Top Geographical ContributionInterest Coverage Ratio Downtrend
100% Operating Distribution Proportion 
Property Yield Uptrend 
Operating Distributable Income Margin Uptrend

Despite a similar gross revenue and NPI from the previous half-year, distribution has declined mainly due to higher finance costs. In terms of debt maturity, 21% of debt would be matured in the coming fiscal year.

For more information, check out:

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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