Broker: CGS International
Date of Report: May 4, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Far East Hospitality Trust (FEHT SP)
- Action/Call: Maintain ADD (Buy equivalent)
- Target Price: S\$0.72 (unchanged)
- Current Price (as of report): S\$0.575
- Upside: 25.2%
- Dividend Yield (FY26F): 6.2%
- Key Idea/Highlight:
- FEHT reported distributable income of S\$17.9m, up 12.1% year-on-year, supporting FY26F core earnings.
- Management is open to asset swaps and divestments, with an ongoing strategic review that could act as a catalyst for the next phase of growth.
- FEHT’s Singapore-centric portfolio is seen as resilient amid current market uncertainty, with mid-tier and upscale hotels positioned to benefit from travelers trading down due to high airfares.
- Gearing as of Mar 2026 was 33.4%, with cost of debt at 2.3% and largely fixed rate loans.
- Main risks: prolonged disruption in global travel demand or unexpected changes in interest rates.
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.cgs-cimb.com
