11
ANNUAL REPORT 2015
FRASERS HOSPITALITY TRUST
DPS EXCEEDED IPO FORECAST
BY 2.6%
We are pleased to inform that for
its first reporting period from 14
July 2014 to 30 September 2015,
(“FY2015”) Distribution Per Stapled
Security (“DPS”) of SGD7.56 cents
beat forecast by 2.6% on the back of
an increase in Distributable Income
(“DI”) of 1.2% to SGD93.7 million.
Gross Revenue (“GR”) and Net
Property Income (“NPI”) performed
largely in line with forecast at
SGD128.7 million and SGD105.7
million respectively.
This performance was supported
by a well-diversified portfolio with
continued strong showings by
the properties in Australia, Japan
and the UK, which balanced the
softer performance in Malaysia and
Singapore. In addition, all of FHT’s
properties have a minimum rent
under the master lease structure to
provide downside protection while
the rent structures allow FHT to
benefit from performance upside.
We believe that FHT, with its well-
balanced and resilient portfolio of
quality hospitality assets, flexible
independent platform and strong
acquisition pipeline, coupled with
support from our committed
sponsor FCL, is well positioned to
continue to deliver value to our
stapled securityholders.
ACTIVE ASSET MANAGEMENT AND
ACQUISITION
Since our listing on 14 July 2015,
we have had an active year. We
commenced an asset enhancement
initiative at InterContinental
Singapore and completed our
maiden acquisition of Sofitel Sydney
Wentworth in Australia.
Unveiling the new InterContinental
Singapore
Located in the unique Bugis heritage
precinct, the well-established
InterContinental Singapore is
in the midst of a SGD26 million
transformation. Come February
2016, the hotel will offer totally new
guest rooms refining its Peranakan
theme, an all-new dining concept
restaurant, Ash and Elm, and a
revitalised lobby lounge. We are
excited about the rejuvenated
InterContinental Singapore and are
confident that it will command a
stronger position within the luxury
accommodation segment offering
fresh appeal to discerning business
and leisure travellers.
Acquisition of Sofitel Sydney
Wentworth
In July 2015, FHT successfully
acquired a 75-year leasehold interest
in the 436-room luxury Sofitel
Sydney Wentworth. The iconic
hotel, strategically located in the
heart of Sydney’s CBD, is FHT’s first
acquisition post-IPO and its third
asset in the city. Within walking
distance of the hotel are most of
Sydney’s premium commercial
office buildings, which are home to
the most prominent domestic and
international tenants from across
the finance, legal and government
sectors. Going forward, we expect
FHT to benefit from the hotel’s
full-year contribution in the strong
Sydney hospitality market.
MARKET OVERVIEW
In Australia, the demand for
accommodation is supported
strongly by increasing corporate and
leisure arrivals, both international
and domestic, especially in Sydney,
its key gateway city. The Australian
Dear Stapled Securityholders,
It is our pleasure to present FHT’s
inaugural annual report. FHT
debuted on the Main Board of
the SGX-ST on 14 July 2014 as
the first global hotel and serviced
residence hospitality trust listed
in Singapore. The Initial Public
Offering (“IPO”) received strong
demand from cornerstone,
institutional and retail investors,
who were attracted to FHT’s
portfolio of quality hospitality
assets in prime locations of
key gateway cities across
Asia, Australia and the UK. The
offering was approximately 19.0
times subscribed, raising gross
proceeds of SGD367.9 million
at SGD0.88 per stapled security.
FHT’s IPO was named Singapore’s
“Equity Issue of the Year” at the
International Financing Review
Awards Asia 2014 for winning
investors’ full support and
boosting Singapore’s IPO market.
