Far East Hospitality Trust (Q5T) AI Stock Analysis

• Market Cap: S$1.16B
• Dividend Yield: 7.23%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.57
• Revenue Growth: 0.84%
• EPS Growth: -64.42%
• Country: SG
• Employees: 9
• Sector: Real Estate
• Sector Strength: 54
• Industry: REIT - Diversified
• EPS (TTM): <0.01
• Shares Outstanding: 2,021,648,200
• 10 Day Avg. Volume: 1,218,520
• 30 Day Avg. Volume: 1,176,066
• PEG Ratio: -0.04
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.61
• Price Target Upside: 5.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: S$0.50 ▼(-13.79%Downside)

The overall stock score of 65 reflects a balance between stable financial performance and positive technical indicators. Despite some profitability challenges, the company's strong cash flow and attractive dividend yield support its valuation. The lack of recent earnings call data and corporate events limits further insights into future performance.

Positive Factors

Acquisition Strategy

The acquisition of Four Points Nagoya is expected to contribute from the second quarter onwards, enhancing future performance.

Interest Savings

Interest savings are expected to continue as a result of lower interest rates for Japanese yen borrowings and base rates for SG$ loans.

Visitor Arrivals

FEHT will be a key beneficiary of uplift in visitor arrivals expected in 2024.

Negative Factors

Revenue Decline

Far East Hospitality Trust reported a decrease in gross revenue and net property income due to lower contributions from hotels and serviced residences.

Supply Headwinds

There are concerns about lingering supply headwinds and potential tariff-led cuts in corporate travel.

Far East Hospitality Trust Business Overview & Revenue Model

Company Description

Far East H-Trust is a Singapore-Focused Hotel and Serviced Residence Hospitality Trust listed on the Main Board of The Singapore Exchange Securities Trading Limited ("SGX-ST"). Comprising Far East Hospitality Real Estate Investment Trust ("Far East H-REIT") and Far East Hospitality Business Trust ("Far East H-BT"), Far East H-Trust was listed on the SGX-ST on 27 August 2012 and has a portfolio of 13 properties totaling 3,143 hotel rooms and serviced residence units valued at approximately S$2.65 billion as at 31 December 2019. Managed by FEO Hospitality Asset Management Pte. Ltd. and FEO Hospitality Trust Management Pte. Ltd. (collectively, the "Managers") and sponsored by members of Far East Organization Group (the "Sponsor"), Far East H-Trust seeks to provide Stapled Securityholders with regular, stable and growing distributions on a quarterly basis. Far East H-Trust is listed on the FTSE ST Mid Cap Index.

How the Company Makes Money

Far East Hospitality Trust generates revenue primarily through leasing its portfolio of hotels and serviced residences to its master lessees, who are responsible for the management and operations of the properties. The income is derived from fixed rent components, providing stable cash flow, and variable rent components, which are tied to the performance of the underlying properties. The trust may also earn income from other related hospitality services. Key partnerships with established hospitality operators and brands contribute significantly to its earnings by ensuring high occupancy rates and competitive room rates. Additionally, the strategic location of its properties in Singapore enhances its attractiveness to international and domestic visitors, further bolstering revenue potential.

Far East Hospitality Trust Financial Statement Overview

Summary

Far East Hospitality Trust exhibits a solid financial position with strong cash flow and equity ratios. However, there are concerns with declining profitability metrics, particularly the net profit margin and return on equity. Revenue growth remains modest, and leverage is well-controlled, balancing the financial outlook.

Income Statement

The revenue growth rate improved modestly by 1.78% from 2023 to 2024. The gross profit margin is strong at 81.34%, highlighting efficient operations, though the net profit margin decreased significantly to 42.96% compared to the previous year, indicating decreased profitability. The absence of EBIT suggests operational challenges.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 71.61%, reflecting financial stability. The debt-to-equity ratio is moderate at 0.39, indicating manageable leverage. However, the return on equity decreased significantly to 2.52% in 2024, suggesting reduced profitability for shareholders.

Cash Flow

The free cash flow showed a slight decline of 2.91% in growth, suggesting stable cash generation capacity. The operating cash flow to net income ratio is strong at 2.00, indicating efficient cash conversion, while the free cash flow to net income ratio stands at 1.93, demonstrating robust cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.97M	108.71M	106.81M	83.58M	83.25M	83.25M
Gross Profit	112.73M	88.43M	87.96M	67.59M	65.41M	62.41M
EBITDA	40.57M	77.32M	77.87M	209.00M	138.72M	-63.51M
Net Income	160.32M	46.70M	130.31M	203.75M	131.01M	-93.40M
Balance Sheet
Total Assets	2.59B	2.59B	2.62B	2.56B	2.66B	2.58B
Cash, Cash Equivalents and Short-Term Investments	28.49M	19.66M	63.09M	49.77M	11.69M	10.92M
Total Debt	716.18M	716.49M	736.75M	737.82M	947.64M	989.20M
Total Liabilities	733.33M	734.72M	755.75M	755.30M	1.02B	1.02B
Stockholders Equity	1.86B	1.85B	1.87B	1.80B	1.65B	1.56B
Cash Flow
Free Cash Flow	105.72M	90.18M	92.88M	64.64M	68.33M	71.89M
Operating Cash Flow	110.11M	93.63M	97.26M	71.87M	69.28M	76.44M
Investing Cash Flow	-108.00K	-349.00K	15.58M	255.50M	42.98M	-4.55M
Financing Cash Flow	-146.34M	-136.71M	-99.52M	-289.30M	-111.48M	-66.81M

Far East Hospitality Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:Q5T, the sentiment is Positive. The current price of 0.58 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.56, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.01 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:Q5T.

Far East Hospitality Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Q5T	65 Neutral	S$1.16B	24.78	2.51%	7.23%	0.84%	-64.42%
Sector *	59 Neutral	C$1.25B	-1.14	-8.19%	4.99%	10.83%	-22.67%
CDHSF	―	$795.72M	73.34	0.77%	6.61%	―	―
SGLMF	―	$934.28M	16.36	4.09%	7.39%	―	―
JYEU	67 Neutral	S$1.28B	21.78	3.16%	6.84%	-8.34%	-22.51%
AU8U	63 Neutral	S$1.30B	79.35	-0.91%	7.09%	-7.66%	-145.74%
ACV	62 Neutral	S$1.35B	74.47	1.45%	2.93%	7.02%	-79.65%

Far East Hospitality Trust Corporate Events

Far East Hospitality Trust’s 13th AGM Highlights Continued Stakeholder Engagement

Far East Hospitality Trust held its 13th Annual General Meeting at the Orchard Rendezvous Hotel in Singapore. The meeting was attended by key management, including the CEO and CFO, as well as directors and stakeholders, highlighting the company’s ongoing commitment to transparency and stakeholder engagement.

The most recent analyst rating on (SG:Q5T) stock is a Buy with a S$0.74 price target. To see the full list of analyst forecasts on Far East Hospitality Trust stock, see the SG:Q5T Stock Forecast page.

Far East Hospitality Trust Secures Sustainability-Linked Facility

Far East Hospitality Trust has entered into a JPY 2.4 billion sustainability-linked facility agreement with an institutional bank, which includes conditions related to the shareholding interests of its controlling stapled securityholders. These conditions also impose restrictions on changes in the management and ownership of the REIT Manager. A potential Change of Control Event could impact approximately S$746.9 million in facilities, although no breaches have occurred as of the announcement date.