Frasers Hospitality Trust has reported a distribution per stapled security of 1.0257 cents for its 1HFY2025 ended March 31, down 6% y-o-y.

While gross revenue was up 0.9% y-o-y to $63.8 million in the same period, net property income was down 2.5% y-o-y to $43.5 million, as there was an absence of one-off income adjustments in the year-earlier period, plus costs ranging from tax to utility to financing.

"While cost pressures persist and the market environment remains challenging, performances across our portfolio remained relatively stable," says Eric Gan, CEO of the manager.

"Amid ongoing macroeconomic uncertainties and geopolitical tensions, our priorities remain anchored on prudent capital management, operational efficiency and sustainability, as we continue to position the portfolio to benefit from the gradual recovery in global tourism," he adds.

As at March 31, FHT's gearing stood at 34.8%, with a weighted average debt maturity of 2.7 years.

Its effective cost of borrowing rose from 3.4% as at March 31 2024 to 3.6% as at March 31, due to refinancing at higher interest rates.

FHT says it is in "advanced discussions" with lenders to refinance maturing borrowings and additional credit facilities.

FHT's interest coverage ratio was 3.0 times, with 72.8% of total borrowings on fixed rates, while net asset value per stapled security was 64.16 cents, which is below its May 5 closing price of 65 cents, given the gain of 14% year to date.

On April 23, FHT said it is conducting a review to "explore options" to "ensure alignment" of the interests of its sponsor and stapled security holders.

"While the managers are exploring these options, there is no certainty or assurance that any transaction in respect of the stapled securities will arise, and the managers may decide to continue with FHT's existing business strategy," according to FHT then.