Is Frasers Hospitality Trust A Good Buy In 2025? [Fundamental Analysis]
In this article, we'll conduct a fundamental analysis and review of Frasers Hospitality Trust and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having high capital preservation ability.

Information Is Accurate Up To Jan 2025
Business Description
Frasers Hospitality Trust is a hospitality REIT that was listed in 2014 and owns hotel properties across Singapore, Australia, the United Kingdom, Germany, Japan and Malaysia.
What I Like About FHT:
The management has done a great job with their capital management and the balance sheet health is decent. (Figure 4)
Property management and REIT management expenses are well-managed and reasonable according to their prevailing performances (Figure 2)
What I Do Not Like About FHT:
Generally, I am not a fan of the hospitality sector given the higher economic sensitivity and lower rental stability.
On a geographical level, the portfolio is largely concentrated in 3 key markets - Singapore, United Kingdom and Japan – which may not be “diversified” from the perspective of the hospitality industry.
Updates From Recent Performance (FY 2024)
General Comments:
Gross Revenue and Net Property Income grew by 7.6% and 2.1% on the back of a continued recovery in tourism coupled with the maiden contribution from Koto No Hako.
DPU decreased by 7.5% at the back of higher borrowing costs and an increase in tax expenses.
Portfolio valuation grew by 12.9% due to the inclusion of Koto No Hako and the growth in valuation of The Westin Kuala Lumpur.
The effective cost of borrowing increased by 0.4% to 3.5% per annum which resulted in a lower interest coverage ratio of 0.6x to 3x.
Positive Headwinds:
Despite the ongoing recovery in global tourism, overall figures have yet to reach pre-pandemic levels for the majority of the key cities.
Negative Headwinds:
Pent-up demand for global tourism has been normalizing in most markets and demand is expected to ease moving into 2025.
Borrowing cost is expected to remain elevated and possibly increase moving into 2025 as around 36% of their debt is due next year. While interest rates are expected to decline in 2025, it is unlikely that the rates will decrease fast enough to reduce the overall weighted average cost of debt.
Download Full Report On Telegram
and continue reading my independent analyst report which will provide you with a detailed look at the fundamentals of the stock and a range of price targets to help you out with your investment decision for Frasers Hospitality Trust:
*Join the channel → click on the channel name → under files → download the report you want!
If you would like to learn about REIT investing, you can find my entire methodology in my eBook: Retire With REITs here:
If you are looking for personalized financial advice, I offer a 1-to-1, fee-only consultation where you will receive personalized strategies to design, implement and manage a profitable REIT portfolio. You can find out more about it here:
Connect with me on social media platforms to receive updates on future content! You can also slide into my DMs if you have any questions :)
Disclaimer:
This article is meant to be the opinion of the author
This article is for information purposes only
This article should not be seen as financial advice
This advertisement has not been reviewed by the Monetary Authority of Singapore
Comments