SINGAPORE - Frasers Hospitality Trust (FHT) recorded a 13.7 per cent fall in distribution per stapled security (DPS) to 1.091 cents for its first half year ended March 31, from 1.2649 cents in the corresponding year-ago period.

Gross revenue for the first half grew 1.7 per cent to $63.3 million from $62.2 million. This followed a slight improvement in FHT’s hospitality portfolio performance due to travel recovery in most of its operating markets, said its managers on May 9.

Additionally, the managers noted that from March 1, FHT assumed the economic interest of Koto no Hako Kobe, the retail component of ANA Crowne Plaza Kobe. The property has a net lettable area of 22,431 sq m with a committed occupancy of 60.7 per cent.

Net property income was down 1.3 per cent at $44.7 million from $45.2 million.

Income available for distribution declined 13.7 per cent to $23.4 million, from $27.1million.

This came as the trust incurred higher finance costs as it refinanced its borrowings that matured in the financial year of 2023 amid a higher interest-rate environment, said its managers.

The distribution will be paid on June 28, after the record date on May 17.

As at March 31, FHT’s gearing stood at 35.5 per cent, and its weighted average debt to maturity was 2.08 years. The trust has $127 million in loans due for refinancing in FY2024, or 16.8 per cent of its total gross borrowings.

The managers said FHT has “ample headroom and adequate liquidity” to meet its operational needs and financial commitments.

FHT is a stapled group comprising Frasers Hospitality Reit and Frasers Hospitality Business Trust.

Stapled securities of FHT closed flat at 46 cents on May 8. THE BUSINESS TIMES