Broker: Maybank Research Pte Ltd
Date of Report: July 30, 2026
Ticker: FEHT SP
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Action: BUY maintained on Far East Hospitality Trust (FEHT SP).
- Target Price: SGD 0.65 (implying 14% upside from the current share price of SGD 0.59).
- Key Idea: Lower financing costs are supporting core growth despite a softer Singapore hotel market. Income available for distribution rose 8.9% year-on-year, driven primarily by reduced finance expenses. Core DPS increased 7.9% YoY (excluding divestment-gain distributions).
- Highlights:
- 1H26 performance was broadly in line with estimates. Singapore hotel occupancy improved, but a softer average daily rate led to a slight drop in RevPAR (-1.6%).
- Serviced residences outperformed with RevPAU up 5.7% YoY, and Japan operations remained resilient.
- Gearing remains healthy at 32.8%, and the cost of debt fell to 2.3%.
- FY26-27E DPU forecasts were trimmed by 2-6% due to a lower RevPAR assumption, mainly on Middle East tensions.
- Potential asset monetisation (e.g., Village Hotel Robertson Quay and Village Hotel Albert Court) could provide further upside and proceeds for debt repayment or acquisitions.
- Implications: The stable financial profile, continued cost discipline, and potential asset recycling initiatives provide investors with a defensive yield and possible upside from capital recycling. The DDM-based target price of SGD 0.65 underpins the positive stance.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can access the full research report from the broker’s website.
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