Far East H-Trust FY2025: First Japan Acquisition (FPN Nagoya), RevPAR -3.8%, Core DPS +2.2%, WACD -100bps to 3.1%

Far East Hospitality Trust FY2025 Annual Report (year ended 31 December 2025) marks a pivotal year of geographic expansion — completing its first overseas acquisition in Japan — while Singapore hotel RevPAR softened 3.8% amid a more competitive environment. DPS declined 8.4% to 3.70 S¢ on higher property-related costs, though core distribution from taxable income grew 2.2% YoY.

On 25 April 2025, Far East H-Trust completed the acquisition of Four Points by Sheraton Nagoya, Chubu International Airport (319 keys, freehold) for ¥6,000M (S$52.8M) — a 23% discount to independent valuation of ¥7,790M. Managed by Marriott International; 6-min walk from Chubu Centrair Airport; near Aichi Sky Expo. Far East H-BT was activated as master lessee. Post-acquisition (May-Dec comparable): RevPAR +6.0% YoY, GOP +12.4% YoY, occ +5.7pp. Partial-year gross revenue contribution: S$6.9M.

• ▸Gross Revenue: S$111.4M (FY2024: S$108.7M; +2.5% — higher Commercial Premises income + FPN contribution).
• ▸NPI: S$96.6M (FY2024: S$99.3M; -2.8% — higher property-related expenses).
• ▸Distribution to Stapled Securityholders: S$75.3M (FY2024: S$81.4M; -7.5%).
• ▸DPS: 3.70 S¢ (FY2024: 4.04 S¢; -8.4%; incl. 0.39 S¢ capital distribution from Central Square divestment gains).
• ▸Core DPS (taxable income): +2.2% YoY.
• ▸Total Assets: S$2,611.3M (FY2024: S$2,586.5M). Aggregate Leverage: 33.0% (FY2024: 30.8%).
• ▸WACD: 3.1% (FY2024: 4.1%; -100bps — significant debt cost improvement). ICR: 3.6x (FY2024: 3.0x).
• ▸Total Borrowings: S$774.8M (S$741.6M unsecured + S$33.2M secured/TMK bonds). Wtd avg debt maturity: 3.6yr.
• ▸S$499.3M (~64%) sustainability-linked term loans. 53.5% fixed rate borrowings.

SINGAPORE HOTEL PERFORMANCE (9 HOTELS, 3,094 KEYS)

• ▸Portfolio RevPAR: S$139 (-3.8% YoY) | ADR: S$170 (-4.1%) | Occupancy: 81.3% (+0.3pp).
• ▸Leisure segment: 73.1% of room revenue (FY2024: 75.6%); Corporate improved to 26.9%.
• ▸Top source markets: North Asia 28.4% (Chinese + Japanese), Southeast Asia 26.3%, Europe 18.1%.
• ▸Orchard Rendezvous Hotel (388 keys): Highest revenue at S$19.1M but largest value decline to S$390.4M (-2.8%).
• ▸Village Hotel Changi: Revenue +6.5% to S$8.2M; BCA Green Mark GoldPlus achieved post chiller replacement AEI.

SINGAPORE SERVICED RESIDENCE PERFORMANCE (3 SRs, 240 UNITS)

• ▸Portfolio RevPAU: S$220 (-3.4% YoY) | ADR: S$270 (stable) | Occupancy: 81.5% (-2.7pp).
• ▸Corporate segment: 53.7% of SR revenue (FY2024: 68.0%); Leisure: 46.3% — guest mix shift.

COMMERCIAL PREMISES (180 UNITS IN 8 PROPERTIES)

• ▸Revenue: S$18.3M (+5.6% YoY) — 16.4% of total gross revenue.
• ▸Office occupancy: 99.2% (+4.5pp); rental rates +2.6%; Regency House 100% occupied.
• ▸Retail: stable occupancy at Rendezvous Hotel, Village Hotel Albert Court, Orchard Rendezvous Hotel, Changi, Robertson Quay.

Total portfolio: S$2.56B | Singapore: S$2.49B | Japan FPN: ¥7,790M. Top assets by value: Orchard Rendezvous Hotel S$390.4M, Oasia Hotel Novena S$349.0M, Rendezvous Hotel S$281.6M, Oasia Downtown S$278.0M.

Gerald Lee Hwee Keong: S$960,642 FY2025 (FY2024: S$931,546; +3.1%). Mix: 60% salary+CPF / 16% variable bonus / 24% LTI (Restricted Unit Plan, vests over 3 years). No director fees as executive director. Top-5 KMP (excl CEO) aggregate: S$1,657,182. Director fees total: S$549,584 (80% cash / 20% in Stapled Securities).

Far East H-Trust's FY2025 headline DPS dip (-8.4%) masks a more nuanced picture: core taxable income distribution grew +2.2%, the WACD fell 100bps to 3.1%, and the Trust successfully completed its first overseas acquisition at a 23% discount to valuation. Singapore hotels faced a softer RevPAR environment (-3.8%) absent the major events that boosted 2024, but Commercial Premises delivered +5.6% revenue growth and the Japan asset is performing in line. The Trust is FTSE EPRA Nareit Global and iEdge Next 50 constituent, and SGTI ranked 6th for the 7th consecutive year.