Unaudited Financial Statements Announcement For the half year and full year ended 31 December 2025

Financials Archive

 

Statements of Total Return, Statements of Other Comprehensive Income and Distribution Statements

Balance Sheets as at 31 December 2025

Review of the performance of half year ended 31 December 2025

2H 2025 vs 2H 2024

Gross revenue for 2H 2025 increased 9.0% year-on-year (“YoY”) to S$59.8 million, driven primarily by a S$5.2 million contribution from FPN following the acquisition in April 2025, and continued growth in Commercial Premises and Other Income. Together, the higher contributions more than offset the softer master lease rental income from the Singapore Hotels and Serviced Residences, with the YoY decline narrowing from 9.8% in 1H 2025 to 1.8% in 2H 2025.

The Singapore Hotels benefited from seasonally stronger travel demand compared with the first half of the year, supported by the summer holiday period and key events. Occupancy rose 1.6 percentage points (“pp”) to 83.1%, while average daily rate (“ADR”) declined to S$173 amidst a competitive pricing environment. As a result, revenue per available room (“RevPAR”) eased 1.9% YoY to S$144, with higher occupancy partially offsetting softer rates.

For the Serviced Residences, revenue per available unit (“RevPAU”) remained broadly stable at S$229 despite softer corporate demand. A shift towards leisure travellers offset the decline in corporate stays and supported occupancy. Performance across the serviced residences was uneven, which limited overall pricing uplift and resulted in softer blended average rates.

A snapshot of the performance of the Hotels and SRs in Singapore for 2H 2025 is set out below.

For FPN in Japan, revenue for the second half of the year amounted to S$5.2 million. Operationally, FPN demonstrated a positive performance³ with RevPAR increasing 7.6% YoY to ¥8,334, supported by Meetings, Incentives, Conventions and Exhibitions (“MICE”)-related demand and improving airport traffic. Gross operating profit rose 10.5% YoY, reflecting continued recovery and disciplined cost management.

Commercial Premises and Other Income increased 6.7% YoY to S$9.3 million, supported by higher occupancies across both retail and office spaces, as well as higher rental rates from the office space. Leasing activity remained healthy, underpinned by sustained tenant demand and steady renewals.

Net property income (“NPI”) rose 2.1% YoY to S$50.9 million, supported by a positive contribution of approximately S$1.1 million from FPN. Excluding FPN, NPI from the Singapore portfolio as a whole remained broadly stable YoY at approximately S$49.8 million, reflecting resilient underlying performance. Overall, FPN was accretive to Far East H-Trust’s NPI, underscoring the benefits of geographic diversification and reducing reliance on a single market.

Income available for distribution increased 13.0% YoY to S$37.0 million⁴, mainly reflecting lower net finance expenses which declined by S$3.5 million, alongside a higher NPI. However, distribution to Stapled Securityholders decreased 6.3% YoY to S$39.3 million, largely due to a lower distribution of other gains of S$2.5 million compared with the prior year of S$9.9 million. Consequently, distribution per Stapled Security (“DPS”) declined 7.7% YoY to 1.92 cents. Excluding the distribution of other gains, distribution based on taxable income increased by 14.8% YoY to S$36.8 million.

FY 2025 vs FY 2024

Gross revenue for FY 2025 increased 2.5% YoY to S$111.4 million, driven by the maiden contribution of S$6.8 million from FPN, the Far East H-Trust’s first overseas asset, and continued growth in Commercial Premises and Other Income. These more than offset weaker master lease rental income from the Singapore Hotels and Serviced Residences, amidst a competitive operating environment.

During the year, the Singapore Hotels recorded a 0.3 pp improvement in average occupancy to 81.3%. ADR declined 4.1% to S$170, reflecting a more competitive operating environment and the absence of large-scale events that had supported demand in the prior year, resulting in fewer peak pricing opportunities. Softer corporate and leisure demand in the first half of the year also weighed on room rates. As a result, RevPAR declined 3.8% year-on-year to S$139. Performance improved in the second half of the year, with more stabilised economic conditions, major events such as the World Aquatics Championship, and targeted tactical promotions.

For the Serviced Residences, average occupancy was 81.5%, reflecting softer corporate demand, particularly in the first half of the year. ADR remained stable at S$270, supported by a higher proportion of leisure and short-stay guests, which partially mitigated the impact of weaker long-stay corporate bookings. Consequently, RevPAU declined 3.4% year-on-year to S$220.

A snapshot of the performance of the Hotel and SR segments in Singapore for FY 2025 is set out below.

Commercial premises in the portfolio performed well, with revenue rising 6.5% YoY to S$18.5 million, driven by improved occupancies and higher rental rates, especially for the office units. The commercial premises continued to be resilient and provided stable support to the portfolio. Leasing activity remained healthy, supported by sustained demand and steady tenant renewals.

Income available for distribution increased 1.9% YoY to S$68.0 million, primarily due to lower net financing costs of S$4.9 million, which more than offset the decline in net property income. However, distribution to Stapled Securityholders decreased 7.5% YoY to S$75.3 million, largely due to a lower distribution of other gains of S$7.9 million compared with the prior year of S$16.1 million. Consequently, DPS declined 8.4% YoY to 3.70 cents. Excluding the distribution of other gains, distribution based on taxable income increased by 3.2% YoY to S$67.4 million.

Commentary on the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

After a slowdown in 2025 caused by macroeconomic uncertainties, the hospitality sector in Singapore is expected to stabilise and benefit from a steady pipeline of major leisure and MICE-related events in the near term. Major MICE events in the first half of 2026 include the biennial Singapore Airshow, the expanded Food & Hotel Asia trade fair, and Herbalife Extravaganza, a large-scale corporate and incentive event. The commencement of Disney Cruise Line’s Disney Adventure homeporting operations in Singapore from March 2026 is also expected to support incremental cruise-related visitation and tourism spending, with positive spill-over effects for the hospitality sector.

In addition, the opening of new attractions, including Minion Land at Universal Studios Singapore, the Singapore Oceanarium and Rainforest Wild Asia, is expected to continue enhancing Singapore’s appeal as a fresh and attractive destination for both repeat and first-time visitors.

Air connectivity to Singapore continues to improve with the addition of new routes and increased flight frequencies across key regional and long-haul markets, enhancing accessibility for both business and leisure travellers.

In Japan, inbound tourism remained robust through 2025, with visitor arrivals continuing to grow beyond pre-pandemic level. In the short term, geopolitical tensions with a key source market may weigh on demand. Despite this, Japan continues to benefit from strong destination fundamentals, supported by its rich cultural offerings, diverse tourism experiences, good pipeline of international MICE events and a relatively weak Yen. All these factors are expected to sustain the country’s attractiveness as an affordable and compelling travel destination.

Against this backdrop, the Managers remain focused on optimising portfolio performance amidst ongoing macroeconomic uncertainty, increased hotel supply and a strong Singapore dollar. Furthermore, the Trust has a diversified range of hotels which cater to a wide range of guests, including those from the price-sensitive mass market segment. With a strong balance sheet and ample debt headroom, Far East H-Trust is well positioned to pursue selective, yield-accretive opportunities while maintaining financial resilience.