SGX Stocks and Warrants

Author: kimeng   |   Latest post: Mon, 4 Jan 2021, 3:02 PM


Far East Hospitality Trust (FEHT SP) - Boost From Vaccine Hope

Author:   |    Publish date:

Far East Hospitality Trust’s (FEHT) share price performance has been boosted by rapid vaccine development from Pfizer and BionTech, Moderna and AstraZeneca and Oxford University etc. As a pure-play hospitality REIT in Singapore, FEHT’s recovery will largely depend on international tourists’ arrivals which we believe will in turn depend mainly on the availability of Covid-19 vaccines.

While near-term demand will likely be driven by staycation and government bookings, FEHT will benefit as Singapore gradually reopens its borders amid low infection rates, easing travel restrictions and instruction of special travel arrangements. FEHT’s fixed rent component could also provide some buffer and downside protection in the near-term.

Factoring in the development on vaccines, we increase our DPU forecasts for FY20-24F by 1-3% while decreasing our cost of equity assumption to 7.4% to account for the improved sentiment and outlook.

Our fair value estimate hence increases from S$0.58 to S$0.66. HOLD.

Source: OCBC Research - 23 Nov 2020

Share this

Related Stocks

Chart Stock Name Last Change Volume 
Far East HTrust 0.61 +0.005 (0.83%) 914 

  Be the first to like this.

I3 Messenger
Individual or Group chat with anyone on I3investor

168  275  188  518 

Top 10 Active Counters
 Oceanus^ 0.047-0.002 
 LionGold 0.005+0.001 
 AusGroup 0.0380.00 
 Jiutian Chemical 0.108-0.001 
 Eucon^ 0.086+0.016 
 MarcoPolo Marine 0.021-0.002 
 MMP Resources^ 0.006+0.002 
 Blumont^ 0.005-0.001 
 Synagie 0.068+0.004 
 ETC Singapore 0.052+0.001