Frasers Hospitality Trust (FHT) has captured the spotlight with an extraordinary 40.4% rise in its stapled securities over the past month. From trading at S$0.42 on Nov 29, 2024, the securities climbed to S$0.59 by Dec 31 before closing slightly lower at S$0.55 on Jan 3, 2025.
A Spike in Trading Activity
The meteoric price rise has been accompanied by a dramatic increase in trading volumes. From just 321,000 units on Nov 29, volumes soared to a peak of 14.17 million units on Dec 6. The rapid price and trading volume movements prompted FHT’s manager, Frasers Hospitality Asset Management, to address the situation in a filing with the Singapore Exchange on Dec 31.
“The managers would like to clarify that they are not aware of the specific reason for, or the basis of, the recent trading activity,” the filing stated.
Recovery Fuels Momentum
The surge follows positive signals from FHT’s latest financial performance. In its second-half FY2024 earnings reported on Nov 12, the group revealed growth in both gross revenue and net property income (NPI), reflecting the recovery of the global hospitality sector.
As of Sept 30, 2024, FHT’s portfolio was valued at approximately S$2 billion, marking a 2.9% year-on-year increase in Singapore dollar terms. CEO Eric Gan attributed the stronger performance to the rebound in global travel and hospitality, which has bolstered demand across its properties.
A Diverse Portfolio with a Global Reach
FHT’s portfolio features marquee assets such as the InterContinental Singapore and Fraser Suites Singapore, and spans regions including Australia, the United Kingdom, Malaysia, and Japan. This global footprint has allowed the trust to capitalize on the resurgence of travel and tourism worldwide.
Market Speculation and Future Outlook
While the managers have not identified any specific catalyst for the recent activity, market speculation suggests a combination of factors, including increased investor interest in recovery-linked assets and the broader revival in the REIT sector.
As investors continue to monitor the trust’s performance, questions linger about whether this momentum can be sustained. For now, Frasers Hospitality Trust remains a key player to watch in the ever-dynamic S-REIT market.
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