Broker Name: CGS International
Date of Report: October 31, 2025
Excerpt from CGS International report.
Report Summary
- Far East Hospitality Trust (FEHT) reported steady 3Q25 results, with revenue and net property income (NPI) in line with expectations, supported mainly by interest savings as finance expenses declined sharply year-on-year.
- Singapore hotel performance is recovering, aided by a rebound in international visitor arrivals, major events, and higher occupancy rates, while serviced residences and the newly acquired Japan hotel show improvement but at a slower pace.
- Management anticipates continued interest expense savings and potential inorganic growth in FY26, with gearing and borrowing costs under control; the FY25F distribution is expected to be robust as capital top-ups roll off.
- FEHT maintains a 6.1% forecasted dividend yield for FY25 and a target price of S\$0.76, with re-rating catalysts including stronger tourism and accretive acquisitions; downside risks include global travel disruptions and interest rate changes.
- The REIT’s ESG score is B- mainly due to lower environmental scores, but efforts are underway to improve sustainability credentials and disclosures, aiming for net-zero emissions by 2050.
- Financials indicate stable asset leverage, healthy dividend payout ratios, and continued focus on operational efficiency and energy reduction targets.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgsi.com
