Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Far East Hospitality Trust / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/frasers-hospitality-trust" target="_blank" data-smartkarma-citation="entities:913:1" rel="noopener">Frasers Hospitality Trust (FHT SP)</a> has been the subject of media reports about possible "strategic options" or go-private interest since this spring. They <a href="https://links.sgx.com/FileOpen/FHT_Announcement.ashx?App=Announcement&amp;FileID=710769" target="_blank" rel="noopener">responded</a> on 8 April. </li>
<li>Today the shares were halted. We should expect news shortly. A Bloomberg article this morning suggested the promoters were seeking funding. Presumably, they will find it relatively quickly.</li>
<li>This could take a week rather than a day but given the run-up, one should also expect it a) to work and b) get done with small premium from here.</li>
</ul>



Frasers Hospitality Trust (FHT SP) has been the subject of media reports about possible "strategic options" or go-private interest since this spring. They responded on 8 April. 
Today the shares were halted. We should expect news shortly. A Bloomberg article this morning suggested the promoters were seeking funding. Presumably, they will find it relatively quickly.
This could take a week rather than a day but given the run-up, one should also expect it a) to work and b) get done with small premium from here.


Fraser Hospitality Trust Halted - Privatisation Likely. Far East The Better Trade Here.

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Far East Hospitality Trust / Equity Bottom-Up

<ul>
<li>Not all hospitality REITs in Singapore are beneficiaries of the rebound in tourism in Singapore. </li>
<li>Genting, OUE Commercial REIT, and Fraser Hospitality Trust are not exactly beneficiaries to the current tourism rebound. </li>
<li>Only Far East Hospitality Trust has a 100% exposure in hotels in Singapore while CDL Hospitality Trust has 41% of the total contribution from Singapore. </li>
</ul>


Not all hospitality REITs in Singapore are beneficiaries of the rebound in tourism in Singapore. 
Genting, OUE Commercial REIT, and Fraser Hospitality Trust are not exactly beneficiaries to the current tourism rebound. 
Only Far East Hospitality Trust has a 100% exposure in hotels in Singapore while CDL Hospitality Trust has 41% of the total contribution from Singapore. 


Southeast Asia Tourism: Who Are the Beneficiaries

Frasers Hospitality Trust / Equity Bottom-Up

<ul>
<li>Most of the countries that <a href="https://www.smartkarma.com/entities/frasers-hospitality-trust" target="_blank" data-smartkarma-citation="entities:913:1" rel="noopener">Frasers Hospitality Trust (FHT SP)</a> has assets in have their borders already opened. </li>
<li>The full impact of the reopening will only be seen in the subsequent quarters thus it is almost certain that next quarter's result will be better than the past one.</li>
<li>The upside from privatization is mostly priced in but the recovery of the business is real albeit potentially gradual. </li>
</ul>


Most of the countries that Frasers Hospitality Trust (FHT SP) has assets in have their borders already opened. 
The full impact of the reopening will only be seen in the subsequent quarters thus it is almost certain that next quarter's result will be better than the past one.
The upside from privatization is mostly priced in but the recovery of the business is real albeit potentially gradual. 


Fraser Hospitality Trust (FRHO): Privatization + Recovery.

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-05/Hospitality%20SREITs_0.PNG' alt='Hospitality S-REITs with Singapore assets' />
 </figure>
 <div class='content-caption'>Hospitality S-REITs with Singapore assets</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>Twenty three S-Reits and property trusts have reported financial results or business updates this reporting season. All pure-play hospitality Reits with Singapore assets have reported, and they are: Ascott Residence Trust, CDL Hospitality Trusts, Far East Hospitality Trust, and Frasers Hospitality Trust. These 4 averaged 23.4 per cent total returns in the year to date. 
Most of the hospitality trusts with Singapore assets reported higher RevPAR (revenue per available room) in Q1 2022, due to growth in average daily rates (ADR) and occupancy. The trusts also expressed optimism for 2022 as they see recovery and reopening across their operating markets. 
Ascott Residence Trust noted that several countries saw restrictions tighten in January and February this year while most started to substantially ease border controls towards the end of Q1 2022. It reported a 22 per cent year-on-year increase in portfolio RevPAU (revenue per available unit) from S$55 to S$67 despite the spread of the Omicron variant. 
Its longer-stay properties contributed about 28 per cent of Q1 2022 gross profit, up from around 12 per cent in Q1 2021. As more countries reopen borders, the trust noted an uptick in international corporate and leisure bookings. Three of its properties (2 in Singapore, 1 in Australia) also transited from block bookings to welcoming public guests, in line with the respective countries’ reopening plans. In Singapore, its lyf one-north, which obtained TOP in January 2022, also achieved strong occupancy of over 85 per cent in Q1 2022. 
CDL Hospitality Trusts recorded RevPAR growth across majority of its portfolio. In Singapore, its Q1 2022 RevPAR rose 40.7 per cent year on year, driven by growth in average room rate. It noted that market demand is recovering, with staycations and corporate project groups still comprising the bulk of demand. Two of its Singapore hotels continue to operate as facilities used for isolation purposes and these contracts are expected to end by Q3 2022. The other 4 Singapore hotels are expected to be supported primarily by the return of international travellers, staycations, long-stay project groups, as well as the return of meeting groups, including major MICE events. 
Far East Hospitality Trust’s hotel portfolio reported 15.7 per cent higher RevPAR of S$59 in Q1 2022 from S$51 in Q1 2021 and 31.8 per cent higher ADR, despite a 8.4pp dip in average occupancy rate to 67.7 per cent due to the cessation of the government contract for isolation purposes at 3 of its hotels. 
Its serviced residences continued to demonstrate strong performance, recording higher Q1 2022 occupancy rate of 86.8 per cent, a 7.5 per cent year-on-year rise in ADR, and 24.3 per cent increase in RevPAU with support from long-stay corporate sources. 
Frasers Hospitality Trust reported higher gross revenue by 10.4 per cent year on year in H1 FY22 with the improved operating environment. Its Singapore portfolio recorded higher ADR and occupancy rate, which lifted its RevPAR by 15.3 per cent year on year in H1 FY22, mainly supported by long-stay business. The trust remains optimistic about international travel and aims to capture the recovery of hotel demand. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/hospitality-s-reits-see-higher-revpar-as-borders-reopen"> read </a>the original version.</body></html>


      
    
    Hospitality S-REITs with Singapore assets

Twenty three S-Reits and property trusts have reported financial results or business updates this reporting season. All pure-play hospitality Reits with Singapore assets have reported, and they are: Ascott Residence Trust, CDL Hospitality Trusts, Far East Hospitality Trust, and Frasers Hospitality Trust. These 4 averaged 23.4 per cent total returns in the year to date.  
Most of the hospitality trusts with Singapore assets reported higher RevPAR (revenue per available room) in Q1 2022, due to growth in average daily rates (ADR) and occupancy. The trusts also expressed optimism for 2022 as they see recovery and reopening across their operating markets.  
Ascott Residence Trust noted that several countries saw restrictions tighten in January and February this year while most started to substantially ease border controls towards the end of Q1 2022. It reported a 22 per cent year-on-year increase in portfolio RevPAU (revenue per available unit) from S$55 to S$67 despite the spread of the Omicron variant.  
Its longer-stay properties contributed about 28 per cent of Q1 2022 gross profit, up from around 12 per cent in Q1 2021. As more countries reopen borders, the trust noted an uptick in international corporate and leisure bookings. Three of its properties (2 in Singapore, 1 in Australia) also transited from block bookings to welcoming public guests, in line with the respective countries’ reopening plans. In Singapore, its lyf one-north, which obtained TOP in January 2022, also achieved strong occupancy of over 85 per cent in Q1 2022.  
CDL Hospitality Trusts recorded RevPAR growth across majority of its portfolio. In Singapore, its Q1 2022 RevPAR rose 40.7 per cent year on year, driven by growth in average room rate. It noted that market demand is recovering, with staycations and corporate project groups still comprising the bulk of demand. Two of its Singapore hotels continue to operate as facilities used for isolation purposes and these contracts are expected to end by Q3 2022. The other 4 Singapore hotels are expected to be supported primarily by the return of international travellers, staycations, long-stay project groups, as well as the return of meeting groups, including major MICE events.  
Far East Hospitality Trust’s hotel portfolio reported 15.7 per cent higher RevPAR of S$59 in Q1 2022 from S$51 in Q1 2021 and 31.8 per cent higher ADR, despite a 8.4pp dip in average occupancy rate to 67.7 per cent due to the cessation of the government contract for isolation purposes at 3 of its hotels.  
Its serviced residences continued to demonstrate strong performance, recording higher Q1 2022 occupancy rate of 86.8 per cent, a 7.5 per cent year-on-year rise in ADR, and 24.3 per cent increase in RevPAU with support from long-stay corporate sources.  
Frasers Hospitality Trust reported higher gross revenue by 10.4 per cent year on year in H1 FY22 with the improved operating environment. Its Singapore portfolio recorded higher ADR and occupancy rate, which lifted its RevPAR by 15.3 per cent year on year in H1 FY22, mainly supported by long-stay business. The trust remains optimistic about international travel and aims to capture the recovery of hotel demand.  REIT Watch is a weekly column on The Business Times, read the original version.


REIT Watch - Hospitality S-Reits see higher RevPAR as borders reopen

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/far-east-hospitality-trust" target="_blank" data-smartkarma-citation="entities:19061" rel="noopener">Far East Hospitality Trust (FEHT SP)</a> 1Q22 Business Updates – Firing from all cylinders, recovery trade continues</li><li><a href="https://www.smartkarma.com/entities/oxley-holdings-ltd" target="_blank" data-smartkarma-citation="entities:1097" rel="noopener">Oxley Holdings (OHL SP)</a> to sell S$84m worth of Vietnamese assets</li><li><a href="https://www.smartkarma.com/entities/aims-amp-capital-industrial" target="_blank" data-smartkarma-citation="entities:933" rel="noopener">AIMS APAC REIT (AAREIT SP)</a> extends target date of acquisition of 315 Alexandra Road</li></ul>

Far East Hospitality Trust (FEHT SP) 1Q22 Business Updates – Firing from all cylinders, recovery trade continuesOxley Holdings (OHL SP) to sell S$84m worth of Vietnamese assetsAIMS APAC REIT (AAREIT SP) extends target date of acquisition of 315 Alexandra Road

ASEAN Builder's Scoop (28Apr22) - FEHT Firing from All Cylinders

Singapore

Far East Hospitality Trust is a hospitality stapled group comprising Far East H-REIT and Far East H-BT. Far East H-REIT is a Singapore-based real estate investment trust, which invests in hospitality assets and Far East H-BT, a Singapore-based business trust which will be dormant as of the Listing Date.

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Far East Hospitality Trust (FEHT SP)

Fraser Hospitality Trust Halted - Privatisation Likely. Far East The Better Trade Here.

Frasers Hospitality Trust has been halted two months after a Bloomberg article and management filing suggested "strategic options" were being...

Travis Lundy

Southeast Asia Tourism: Who Are the Beneficiaries

the real beneficiaries of the Singapore rebound in tourism (ex-China) are limited to a few names only. Far East Hospitality Trust and CDL...

Henry Soediarko

Fraser Hospitality Trust (FRHO): Privatization + Recovery.

The upside may not be much anymore since the bulk of the upside from the privatization news is already priced in but the gross operating revenue is...

Henry Soediarko

REIT Watch - Hospitality S-Reits see higher RevPAR as borders reopen

Twenty three S-Reits and property trusts have reported financial results or business updates this reporting season. All...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (28Apr22) - FEHT Firing from All Cylinders

OHL sells VN assets; AAREIT extends Alexandra Rd target acq date; DILD 1Q22 mktg sales reached 21% FY target; ALI sold AREIT at 11% discount

SCCM Asia Research

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