Business Model of Far East Hospitality Trust

Far East Hospitality Trust is a Singapore-focused hotel and service residence hospitality trust listed on the SGX. It IPO-ed on 27 August 2012 at 0.93 cents with ticker code of (Q5T.SI). As at 30 October 2018, it has a market capitalisation of SGD$1,132 million. Far East Hospitality Trust is a stapled Trust that consists of both a REIT and a Business Trust. Heartland Boy knows that REIT has a unique set of framework. As REITs are mandated to hold stable assets, Hospitality REITs have to devise creative ways to overcome this regulatory hurdle. Therefore, Heartland Boy has provided some layman notes to Far East Hospitality Trust’s holding structure found in its Annual Report to aid your understanding.

 

Diagram 1: Chart of Far East Hospitality Trust: Adapted from 2017 Annual Report

  • REIT Manager rents out the Hotel and Service Residence portfolio to …