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 S cents forms 101% of our forecast and 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. We maintain our HOLD rating on FEHT but place our FV of S$0.92 under review. We will be speaking with management later today.

Source: OCBC Research - 12 Feb 2014