Far East Hospitality Trust downgraded to 'reduce' by CIMB with a target price of 76 cents

Stock Name: Far East HTrust
Company Name: FAR EAST HOSPITALITY TRUST

Research House: CIMB

Price Call: SELL

Target Price: 0.76

SINGAPORE (Feb 12): CIMB has downgraded Far East Hospitality Trust (FEHT) to 'reduce' from 'hold' with a target price of 76 cents on grounds of continually weak outlook for the REIT.

For the full year, FEHT's soft hotel occupancy declined 3.1% y-o-y while RevPAR decreased 6% y-o-y. This was mainly attributed to a slow tourism landscape in Singapore.

CIMB observes that this weakness was further exacerbated by the increased competition amid the mid-tier hotel space along Orchard Road and slower corporate demand.