Far East Hospitality Trust posted income available for distribution of S$67.9 million for the year ended Dec 31, 2025, up 1.9 percent year-on-year, as a firmer second-half performance and contributions from newly acquired Four Points by Sheraton Nagoya offset a muted first half.

Gross revenue edged 2.5 percent higher to S$111.4 million, while net property income slipped 2.8 percent to S$96.6 million as higher utility and operating costs outweighed revenue gains earlier in the year. Core distribution per stapled security rose 2.2 percent to 3.31 Singapore cents, and total DPS, which included the final tranche of special gains from the 2022 Central Square divestment, declined 8.4 percent to 3.70 cents. The distribution will be paid on 29 March 2026 with books closing on 23 February.

Hotels in Singapore generated average occupancy of 81.3 percent, up 0.3 percentage point, but average daily rate fell 4.1 percent to S$170, leading to a 3.8 percent drop in revenue per available room to S$139. Serviced residences saw occupancy ease to 81.5 percent and RevPAU fall 3.4 percent to S$220 as long-stay corporate demand softened. Commercial premises revenue grew 6.5 percent to S$18.5 million on higher office rents, providing a buffer against volatility in the lodging portfolio.

The addition of Four Points by Sheraton Nagoya contributed S$6.8 million of revenue in its maiden eight-month period, with its RevPAR in local currency up 7.6 percent on stronger MICE traffic.

Weaker room rates in the first half, fewer large-scale events and higher operating costs weighed on results, but momentum improved in the second half as Singapore hosted the World Aquatics Championship and other events, resulting in a 9.0 percent YoY rise in 2H gross revenue to S$59.8 million.

During the year the trust refinanced a S$101.4 million loan with a seven-year sustainability-linked facility, leaving aggregate leverage at 33.0 percent and reducing the weighted average cost of debt to 3.1 percent from 4.1 percent. About 53.5 percent of borrowings are on fixed rates.

Chief executive officer Gerald Lee said the second-half recovery stemmed from more stabilised operating conditions, stronger commercial premises income and the first contribution from the Japan hotel. He noted that management will continue to focus on cost control and disciplined capital management to “maximise returns to unitholders”, while maintaining the flexibility to pursue selective yield-accretive deals given the trust’s low gearing and extended debt maturity profile.

Looking ahead, the manager expects Singapore’s hospitality market to benefit from major events such as the Singapore Airshow, Food & Hotel Asia and Disney Cruise Line’s new homeporting operations from March 2026. It also sees sustained inbound tourism to Japan despite geopolitical headwinds, underpinned by the weak yen and a robust pipeline of MICE events.