FEO just announced its Q3 results and I thought it was much expected from what many had thought to be a disappointment, especially if we compare them direct across year on year.
From the results, it also proves that FEO is far from reaching its status of being a hotel operator with much recurring income and that the company needs to be treated more as a developer with lumpy earnings. Many of the assets sitting in their book have not yet contributed to earnings, with completion such as the UK accommodation and Joint Venture project with Toga still ongoing. Hence, ROA is low if we look at how much the assets are generating relative to the earnings.
Hospitality revenues would come in at around $150m for full year and a net profit of around $12m. That's far from being able to sustain the 6 cents dividends they've been paying.
Based ......