Far East Hospitality Trust

Far East Hospitality Trust (FEHT) has announced 4Q13 results which are in line with our expectations and the street’s. FY13 distribution per stapled security of 5.64 Sc forms 99% of the street’s median forecast. 4Q13 gross revenue was S$33.6m or 3.0% lower than management’s forecast. RevPAR for the hotels, excluding the Rendezvous property (which was acquired on 1 Aug 2013), was S$164.8, down 5.3% YoY, which was expected given challenging industry conditions. Net property income was 2.4% below forecast at S$30.5m. Income available for distribution was S$25.1m or 2.2% below forecast. 4Q13 distribution per stapled security was 1.42 S cents or 2.1% lower than forecast. OCBC maintains HOLD rating on FEHT but place its FV of $0.92 under review.