56
ANNUAL REPORT 2015
FRASERS HOSPITALITY TRUST
FINANCIAL PERFORMANCE
In FY2015, FHT achieved DI of
SGD93.7 million, representing
SGD7.56 cents, exceeding its DPS of
IPO forecast by 2.6%.
GR was marginally below forecast
in FY2015. NPI was 0.6% better than
forecast in FY2015 due to savings in
owner’s expenses. In addition, other
income and lower trust expenses
contributed to a DI that is 1.2% higher
than forecast.
The properties in Japan, Australia and
UK performed better than forecast
due to the buoyant tourism markets
and strong demand from corporate
customers. The higher GR was driven
by higher revenue per available room
(“RevPAR”) in general.
For FY2015, Japan, Australia and
the UK properties turned in strong
performance which balanced the
softer Singapore and KL markets.
The Singapore portfolio registered
lower GR and NPI of 6.2% and
6.1% respectively compared to
its full year forecast. During the
FINANCIAL REVIEW
FY2015
Actual
(SGD mil)
FY2015
Forecast
(SGD mil)
Variance
(%)
Gross Revenue
128.7
129.7
(0.7)
Net Property Income
105.7
105.1
0.6
Distributable Income
93.7
92.6
1.2
DPS (cents)
7.56
7.37
2.6
reporting period, Fraser Suites
Singapore faced headwinds with
the softer long stay rental market
amid increased competition from
new accommodation supply.
Due to the rescheduling of the
asset enhancement project to
a more appropriate timeframe,
InterContinental Singapore
experienced more out of inventory
rooms than previously budgeted
during FY2015.
GR and NPI of The Westin Kuala
Lumpur dipped 17.3% and 19.5%
respectively compared to its forecast.
Since the aircraft incidents, the KL
market continued to face resistance
as a result of a slower economy,
softer consumer spending and weak
corporate travel demand with a
lacklustre oil and gas market. With
national carrier Malaysia Airlines’
reduction of international long haul
flights to and from the country,
occupancy contracted across KL.
Introduction of Goods and Services
Tax in April 2015, increasing supply
of hotels in KL and the continued
political uncertainty also weighed
negatively on the KL hospitality
market.
GR and NPI of the ANA Crowne Plaza
Kobe was 12.3% and 13.6% better
than forecast. The high occupancy
rate and average daily rate (“ADR”)
trend continued throughout FY2015,
especially during the peak travel
months of October and November
in 2014, as well as May and August
in 2015. During FY2015, increased
revenue from a full conference
calendar was also a notable revenue
contributor.
GR and NPI of the Australia
properties, including the acquisition
of Sofitel Sydney Wentworth in July
2015, achieved strong performance,
exceeding forecast by 16.0% and
20.4% respectively. During the year,
international leisure and corporate
visitor arrivals into Sydney saw strong
growth and domestic travel remained
robust.
The UK properties recorded a
strong performance due to high
occupancies in FY2015 as the
properties continued to see strong
demand in the corporate and leisure
segments. Overall GR and NPI
exceeded forecast by 7.5% and 12.3%
respectively in FY2015.
The composition of GR and NPI of
FHT’s diversified portfolio for FY2015
is shown in the charts below.
PRUDENT CAPITAL AND
RISK MANAGEMENT
In managing its capital structure and
financial risks, FHT’s key objectives
FY2015 GROSS REVENUE BY GEOGRAPHY
Q
Singapore
31%
Q
Malaysia
8%
Q
Japan
14%
Q
Australia
19%
Q
United Kingdom 28%
Q
Singapore
31%
Q
Malaysia
10%
Q
Japan
14%
Q
Australia
18%
Q
United Kingdom 27%
FY2015 NET PROPERTY INCOME BY GEOGRAPHY
