Broker Name: Maybank Research Pte Ltd
Date of Report: February 13, 2026

Excerpt from Maybank Research Pte Ltd report.

Report Summary:

• Far East Hospitality Trust (FEHT) reported a FY25 DPS of SGD3.7c, down 8.4% YoY, as the capital top-up from a previous asset divestment was fully exhausted. Core distribution improved 3.2% YoY, driven by contributions from its Japan asset and commercial premises, and lower finance expenses offsetting weak Singapore hotel performance.
• Occupancy rates for hotels and serviced residences in Singapore improved in 2H25, with RevPAR declines stabilizing. Japan hotel performance was strong, with RevPAR up 7.6% YoY and gross operating profit up 10.5% in 2H25. The trust expects Singapore RevPAR to rise 4% in FY26 as tourism recovers and new supply remains limited.
• FEHT’s gearing ratio and cost of debt continued to trend down, with refinancing risks limited. The cost of debt is expected to drop further in FY26 as higher-rate hedges roll off. The trust is also exploring further acquisitions in Singapore and Japan.
• FY26-27 DPU forecasts are lowered as the capital top-up is exhausted, although finance cost savings and Japan contributions will partially offset the gap. Target price raised to SGD0.65 with a HOLD rating maintained.
• Key risks include lower-than-expected tourist arrivals, macro uncertainties impacting corporate demand, increased supply, higher interest rates, and potential dilutive transactions.
• FEHT remains backed by a strong sponsor, with a stable portfolio and a pipeline for future growth, and has made progress on ESG initiatives and maintains high governance standards.

Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank website: https://www.maybank-ke.com