Frasers Hospitality Trust (ACV) H1 2025 earnings summary

Executive summary

• Gross revenue for 1H FY2025 rose 0.9% year-over-year to S$63.8 million, driven by higher retail income from ANA Crowne Plaza Kobe/Koto no Hako and other income, but offset by absence of one-off items from 1H FY2024.

• Net property income declined 2.5% year-over-year to S$43.5 million due to higher property taxes, utilities, and other expenses.

• Distribution per stapled security was 1.0257 cents, down 6.0% year-over-year, reflecting lower NPI and higher finance costs from refinancing in a higher interest rate environment.

• Portfolio performance remained stable after adjusting for prior year one-off events, with Koto no Hako strengthening the income base.

Financial highlights

• 1H FY2025 gross revenue: S$63.8M (+0.9% YoY); NPI: S$43.5M (−2.5% YoY); income available for distribution: S$21.9M (−6.1% YoY).

• DPS for 1H FY2025: 1.0257 cents (−6.0% YoY); distribution to stapled securityholders: S$19.8M (−6.0% YoY).

• Portfolio NPI by geography: Australia 28%, Singapore 28%, UK 14%, Japan 10%, Germany 9%, Malaysia 11%.

• Net asset value per stapled security: S$0.64 as of 31 Mar 2025.

• Effective cost of borrowing: 3.6% as of 31 Mar 2025, up from 3.4% a year earlier.

Outlook and guidance

• IMF projects global GDP growth at 2.8% for 2025 and 3.0% for 2026, with risks from trade tensions, protectionism, and policy uncertainty.

• UN Tourism expects international tourist arrivals to grow 3–5% in 2025, but outlook remains cautious due to high travel costs, volatile energy prices, and geopolitical risks.

• Managers remain focused on prudent capital management, operational efficiency, and sustainability amid uncertainties.

• US Fed signals caution on rate cuts amid persistent inflation and new tariffs.