Phillip Securities analyst Paul Chew has maintained their bullish stance on Q5T stock, giving a Buy rating yesterday.
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Paul Chew has given his Buy rating due to a combination of factors influencing Far East Hospitality Trust’s performance. One of the key reasons is the resilience of the commercial segment, which saw a revenue increase of 6.4% year-on-year, supported by high occupancy rates in office and retail spaces. This stability is expected to continue, providing a reliable foundation for the trust’s overall portfolio.
Another significant factor is the declining finance costs, which fell by 15.8% in the first half of 2025, with expectations for further reductions. This decrease is attributed to the incorporation of a lower-rate JPY loan, which is anticipated to result in additional savings. Despite a decline in the hospitality segment’s performance due to fewer large-scale events, the outlook for the second half of 2025 is positive, with an expected increase in events and leisure demand. These elements, combined with a projected dividend yield of 6.0% and a price-to-net-asset-value ratio of 0.67, support the Buy rating with a target price of S$0.70.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$0.75 price target.