Broker: CGS International Securities
Date of Report: May 4, 2026
Excerpt from CGS International Securities report.
Report Summary
- Stock: Far East Hospitality Trust (FEHT SP)
- Action: Maintain Add (Buy)
- Target Price: S\$0.72 (Current Price: S\$0.575, Upside: 25.2%)
- Key Idea: FEHT’s 1QFY26 distributable income rose +12.1% yoy, forming 24.5% of FY26F forecasts, supporting core earnings. The Singapore-centric portfolio is well-positioned amid volatile markets, with a projected FY26F dividend yield of 6.2%.
- Highlights:
- Management is open to asset swaps and divestments, which could drive growth via accretive acquisitions or asset reconfiguration.
- Gearing remains healthy at 33.4% with average cost of debt at 2.3%.
- FEHT benefits from travelers trading down to mid-tier and upscale hotels due to high airfares; occupancy-led RevPAR growth is expected to continue.
- Strategic review could provide further catalysts; downside risks include prolonged global travel disruption and unexpected interest rate changes.
- Ticker: FEHT SP
above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website : https://www.cgs-cimb.com
