Frasers Hospitality Trust (ACV) H1 2025 earnings summary

Executive summary

• Gross revenue for 1H FY2025 rose 0.9% year-over-year to S$63.8 million, mainly due to increased contributions from Koto no Hako and higher other income, but offset by the absence of one-off items from the prior year.

• Net property income declined 2.5% year-over-year to S$43.5 million, impacted by higher property tax, utilities, and other expenses.

• Distribution per stapled security was 1.0257 cents, down 6.0% year-over-year, reflecting lower NPI and higher finance costs from refinancing in a higher interest rate environment.

• Portfolio performance remained stable after adjusting for prior year one-off events, with Koto no Hako strengthening the income base.

Financial highlights

• 1H FY2025 gross revenue: S$63.8M (+0.9% YoY); NPI: S$43.5M (−2.5% YoY); income available for distribution: S$21.9M (−6.1% YoY).

• DPS for 1H FY2025: 1.0257 cents (−6.0% YoY); distribution to stapled securityholders: S$19.8M (−6.0% YoY).

• Net asset value per stapled security: S$0.6416 as at 31 March 2025.

• Gearing: 34.8% as of 31 Mar 2025; interest coverage ratio: 3.0x.

• Effective cost of borrowing: 3.6%; weighted average debt maturity: 2.7 years; 72.8% of borrowings on fixed rates.

Outlook and guidance

• IMF projects global GDP growth at 2.8% for 2025, with risks from trade tensions, protectionism, and policy uncertainty.

• UN Tourism expects international tourist arrivals to grow 3–5% in 2025, but outlook remains cautious due to high travel costs, volatile oil prices, and geopolitical risks.

• Managers remain focused on prudent capital management, operational efficiency, and sustainability amid macroeconomic and geopolitical uncertainties.