In a report released today, Lock Mun Yee from CGS-CIMB reiterated a Buy rating on Far East Hospitality Trust, with a price target of S$0.76.
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Lock Mun Yee has given his Buy rating due to a combination of factors that suggest a positive outlook for Far East Hospitality Trust. The company has demonstrated a notable improvement in its financial performance, with a 5.7% year-on-year increase in revenue for the third quarter of 2025, despite a slight decline in net property income. This improvement is largely attributed to a significant reduction in finance expenses, which decreased by 27.9% year-on-year, enhancing the distributable income potential.
Furthermore, the outlook for the Singapore hotel sector appears promising, with an anticipated recovery in the fourth quarter of 2025, supported by increased international visitor arrivals and major events. The management’s strategic focus on occupancy rates and cost management, alongside potential growth opportunities in Japan and Singapore, also contribute to the positive assessment. The potential for further interest savings and the possibility of inorganic growth through acquisitions or asset swaps add to the favorable prospects, making the stock an attractive buy recommendation.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$0.70 price target.