GrowinG FroM FIRM FOUNDATIONS A N N U A L R E P O R T

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1 Growing FROM FIRM FOUNDATIONS A N N U A L R E P O R T

2 FIRST AND ONLY SINGAPORE- FOCUSED HOSPITALITY TRUST 01 About Us Our Structure 02 Our Strategy 08 Letter from Chairman 12 Letter from Chairman (Chinese) 14 Financial Highlights 16 Performance Review 24 Property Portfolio 28 Board of Directors 32 Management Team 36 Investor Relations 38 Corporate Directory 39 Corporate Governance 57 Statement of Policies and Practices 65 Financials Far East Hospitality Trust 109 Financials Trustee-Manager 128 Statistics of Stapled Securityholdings 131 Notice of Annual General Meeting Proxy Form The Quincy Hotel

3 About Us Far East Hospitality Trust ( Far East H-Trust) is the first and only Singapore-focused hotel and serviced residence hospitality trust listed on the Main Board of Singapore Exchange Securities Trading Limited ( SGX-ST ). Comprising Far East Hospitality Real Estate Investment Trust ( Far East H-REIT ) and Far East Hospitality Business Trust ( Far East H-BT ), it is Singapore s largest diversified hospitality portfolio by asset value. Listed on the SGX-ST on 27 August 2012, Far East Hospitality Trust has a market capitalisation of approximately S$1,607 million as at 31 December Far East H-REIT holds 7 Hotels and 4 Serviced Residences and is managed by the REIT Manager, FEO Hospitality Asset Management Pte Ltd. Each of the 11 Properties will be under a Master Lease Agreement where the Master Lessee will pay a rent that comprises a fixed rent and a variable rent from the respective property s revenue from operations. As at the listing date, the Hotel and Serviced Residence Operator is Jelco Properties Pte Ltd. Far East H-REIT is established with the principal investment strategy of investing on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate in Singapore, used primarily for hospitality and/or hospitality-related purposes, whether wholly or partially, as well as real estate-related assets in connection to the foregoing. 01 Our Structure Far East Hospitality Trust Structure FAR EAST H-REIT FAR EAST H-BT 1 As at the reporting date, Far East H-BT is dormant. ANNUAL REPORT 2012

4 02 Our Strategy The REIT Manager takes pro-active measures to capitalise on organic growth opportunities, improve cost management and enhance the properties for better operational performance to optimise cash flow and property value. The REIT Manager plans to source and acquire assets from third parties and the Sponsor, focusing on those that provide attractive cash flows and yields to enhance the returns and improve opportunities for future income and capital growth. For capital and risk management, the REIT Manager endeavours to maintain a strong balance sheet with diversified funding sources. It seeks to optimise its cost of debt financing and utilise interest hedging strategies to reduce exposure to market volatility and employ an appropriate mix of debt and equity to finance acquisitions. These efforts are fundamental to the objective of generating better performance and returns from our portfolio to deliver value to our Stapled Securityholders. OASIA Hotel Singapore FAR EAST HOSPITALITY TRUST

5 TARGETING HIGH GROWTH MID-TIER AND UPSCALE SEGMENTS 03 Changi Village Hotel ANNUAL REPORT 2012

6 04 ABILITY TO CAPTURE SHORT AND LONG TERM DEMAND Albert Court Village Hotel FAR EAST HOSPITALITY TRUST

7 05 As a Singapore-focused hotel and serviced residence hospitality trust, Far East H-Trust remains well-placed to benefit from the growth of Singapore s hospitality market as the country remains a highly regarded destination for business and leisure. Koh Boon Hwee, Chairman and Non-Executive Director The Elizabeth Hotel +0.9% in portfolio valuation since listing, reaching approximately $2.16 billion as at 31 December Hougang Village Residences ANNUAL REPORT 2012

8 % average occupancy at the Hotels helped to buoy Revenue per Available Room. ORCHARD PARADE HOTEL Changi Village Hotel We are progressively executing our asset enhancement programmes on selected properties to capitalise on the expected growth in the tourism industry. We are also actively managing our assets. These efforts are fundamental to our objective of generating better performance and returns from our portfolio to deliver value to our Stapled Securityholders. We will also seek accretive growth by acquiring third party properties with good potential, in addition to Sponsor properties, to expand Far East H-Trust s portfolio. Gerald Lee, Chief Executive Officer FAR EAST HOSPITALITY TRUST

9 WELL-POSITIONED TO CAPITALISE ON GROWTH OPPORTUNITIES 07 OAsia Hotel Singapore ANNUAL REPORT 2012

10 08 Mr Koh Boon Hwee Chairman and Non-Executive Director The Quincy Hotel FAR EAST HOSPITALITY TRUST

11 LETTER FROM THE CHAIRMAN 09 Far East H-Trust REPORTED ITS FIRST SET OF RESULTS on a commendable note despite a tentative economic climate over the last two quarters of Income Available for Distribution +4.5% the only Singapore-focused hospitality trust in the eyes of the investing community. We thank you, our Stapled Securityholders, for your support of our IPO and listing. Making good progress with solid debut Far East H-Trust reported its first set of results on a commendable note despite a tentative economic climate over the last two quarters of Dear Stapled Securityholders On behalf of the Board of the REIT Manager and Trustee-Manager, I am pleased to present this inaugural annual report of Far East Hospitality Trust ( Far East H-Trust ) to you. Far East H-Trust was launched on 16 August 2012 with a well-received Initial Public Offering ( IPO ) which saw the placement and retail tranches oversubscribed by more than 30 times and 14 times, including proceeds raised respectively. We raised about S$717.6 million from a number of cornerstone investors. This was followed by our successful listing on the Main Board of the Singapore Exchange Securities Trading Limited ( SGX-ST ) on 27 August Far East H-Trust s portfolio comprises 7 Hotels and 4 Serviced Residences with assets under management of more than S$2.1 billion. Market capitalisation stands at about S$1.7 billion which accounts for about 38.5% of the market capitalisation of Singapore s hospitality REIT sector as at 28 February This strong show of support validates the merits of Far East H-Trust, We delivered Income Available for Distribution of S$33.6 million for the period from 27 August 2012 to 31 December This exceeded our forecast of S$32.2 million at the time of our IPO, by 4.5%. This achievement demonstrates the REIT Manager s ability to manage the performance and expenses of the portfolio as well as the Far East H-Trust as a whole. As a result, we were able to deliver Distribution per Stapled Security ( DPS ) of 2.09 Singapore cents, which is 4.5% higher than the 2.00 Singapore cents forecast at the time of the IPO. This translates into an annualised yield of 6.5% based on our IPO price of S$0.93. Laying the foundations for growth Singapore s position as a premier tourist destination is being bolstered by significant investments in new tourist attractions. These include recent additions such as the Gardens by the Bay, Marine Life Park, River Safari and the International Cruise Terminal. Tourism catalyst projects in the pipeline include the Singapore Sports Hub and the National Art Gallery. A new Terminal 4 at Changi Airport is expected to accommodate the expected increase in visitor arrivals when ready by ANNUAL REPORT 2012

12 10 LETTER FROM THE CHAIRMAN Far East H-Trust s portfolio comprises well-located and high quality assets that provide easy access to these tourist attractions as well as to business, shopping and cultural districts and healthcare facilities. Our assets, consisting of mid-tier and upscale hospitality properties are uniquely positioned to capitalise on the growth opportunities from these Singapore tourist attractions. Apart from leisure traffic, the anticipated economic expansion in Asia is expected to generate more business travel. The share of business travellers as a percentage of total visitors to Singapore is expected to increase. We are cautiously optimistic that corporate demand in Singapore will be sustained at healthy levels, in line with the economic developments in Singapore and the neighbouring countries. Orchard Parade Hotel, The Elizabeth Hotel, Landmark Village Hotel and The Quincy Hotel are strategically located to benefit from demand among corporate guests, due to their convenient access to the Central Business District ( CBD ) and the Orchard Road area, Singapore s prime areas of business and tourism. Oasia Hotel, which is currently into its second year of operations, will continue to leverage on the expansion of the medical hub at Novena. Changi Village Hotel and Hougang Village Residences which are close to business hubs such as Changi Business Park and Seletar Aerospace Park; are well-situated to cater to corporate guests in the eastern and northern parts of Singapore with their proximity to business. Our other Serviced Residences: Central Square Village Residences, Regency House, and Riverside Village Residences will continue to attract guests requiring close proximity to the CBD. Investing for future growth It is with the interests of the leisure and corporate travellers in mind that we continue to refine our processes and products to stay abreast of competition. We are executing a number of asset enhancement initiatives to improve the performance of our assets. Our objective is to bring about higher revenue-generating capabilities of our assets and to build greater value into the long-term. For the year 2013, we have set aside capital expenditure for the purpose of refurbishments, renovations and improvement works on our properties to enhance their attractiveness to our leisure and corporate guests. The funds will be applied towards renovations of rooms and public areas, and upgrading of mechanical and electrical infrastructure. At this present moment, refurbishment works are being carried out at Landmark Village Hotel and Orchard Parade Hotel. We will also commence refurbishment and asset enhancement works on Albert Court Village Hotel, Changi Village Hotel and Regency House in As we implement initiatives to increase the returns of our properties, we also aim to grow our portfolio by acquiring third party properties and tapping on the pipeline of assets from our Sponsor. Far East H-Trust s portfolio mix of Hotels and Serviced Residences exemplifies our strategy that we are uniquely positioned to ride the growth of the hospitality sector in Singapore. We are committed to build a defensive and resilient portfolio that will enable Far East H-Trust to deliver regular and stable distributions to Stapled Securityholders over the long-term. FAR EAST HOSPITALITY TRUST

13 LETTER FROM THE CHAIRMAN 11 Far East H-REIT has distributed 100% of its taxable income for the period from 27 August 2012 to 31 December 2013, and at least 90% of its taxable income thereafter. On capital management, prudent capital and risk management have enabled Far East H-Trust to achieve a fine balance between the cost and tenure of debt. Looking ahead As a Singapore-focused hotel and serviced residence hospitality trust, Far East H-Trust remains well-placed to benefit from the growth of Singapore s hospitality market as the country remains a highly regarded destination for business and leisure. In the near term, we still see some headwinds. The Unites States has shown some signs of recovery, but the European economies are still concerned with the sovereign debt problems. A slow recovery to full economic health may dampen corporate commitments and business travel. The strength of the economies in the Asia-Pacific region is expected to support the growth. In Singapore, the Government has steered towards a productivity-led growth economy and reduced reliance on foreign manpower. This will put pressure on labour supply and manpower cost for the hospitality industry, although the introduction of the Wage Credit Scheme on 1 March 2013 will help cushion some of the increase in wage cost. Appreciation Far East H-Trust s successful listing on the SGX-ST would not have been possible without the concerted effort of many parties. I would like to thank my fellow colleagues on the Board for their invaluable counsel and wisdom. We are also grateful to our corporate customers and business partners for their continuous support On behalf of our Board, I would also like to thank the Sponsor, which is part of the Far East Organization, for their strong support and the management team for their dedication and hard work in making the IPO listing of Far East H-Trust a success. Lastly, I would like to thank you, our Stapled Securityholders, for your trust and confidence in us, and for your investment in Far East H-Trust. I am confident that we can look toward another fruitful year and deliver steady performance for Far East H-Trust. Koh Boon Hwee Chairman The REIT Manager is optimistic about the potential of the tourism and hospitality industry in Singapore, and remains committed to pursuing quality and sustainable yield accretive investments to grow the Trust. ANNUAL REPORT 2012

14 12 远东酒店信托 2012 年常年报告主席致辞 各位合订证券持有人 我谨代表房地产投资信托管理人以及信托经理的董事会, 提呈远东酒店信托的第一份常年报告书 远东酒店信托于 2012 年 8 月 16 日展开首次公开发售计划并获得投资者的热烈反应, 配售给机构投资者和供散户认购的单位分别取得了超过 30 倍和 14 倍的认购率, 集资总额达到 7 亿 1760 万新元, 其中包括来自多个基础投资者的资金 2012 年 8 月 27 日, 我们在新加坡证券交易所的主板成功上市 远东酒店信托的资产组合是由 7 家酒店和 4 个服务公寓项目组成, 资产价值总额超过 21 亿新元 截至 2013 年 2 月 28 日, 远东酒店信托的市值高达 17 亿新元, 相等于新加坡整体酒店业房地产投资信托市值总额的大约 38.5% 投资者给予的大力支持, 核实了远东酒店信托作为唯一专注于新加坡酒店业的信托的种种优势 我们在此向各位证券持有人表示由衷的感谢, 谢谢你对我们上市计划的鼎力支持 上市后业绩表现进展良好 尽管 2012 年最后两个季度的经济状况不稳定, 远东酒店信托发表的第一份财务报告仍然呈现出良好的业绩表现 从 2012 年 8 月 27 日到 12 月 31 日期间, 信托的可派发收入多达 3365 万新元, 这比当初在首次公开发售计划期间预计的 3220 万新元超出了 4.5% 这意味着房地产投资信托管理人在管理投资组合的表现和开销方面, 发挥了良好的实力 因此, 每合订证券可派发收入为 2.09 分新币, 比首次公开发售计划期间预期的 2.00 分高出了 4.5% 根据首次公开发售价 0.93 分 ( 新币 ) 计算, 远东酒店信托提供的年收益率高达 6.5% 奠定增长的基础 为了持续巩固新加坡作为主要旅游中心的地位, 新加坡投入了大笔资金积极开发新的旅游景点, 其中包括滨海湾花园 圣淘沙海洋生物园 河川生态园以及滨海南国际邮轮中心 目前还在进行开发中的旅游重点项目还包括新加坡体育城以及新加坡国家艺术馆 樟宜机场也正在筹建新的第四航站楼, 预计 2017 年建成后将能够符合日渐增长的旅客需求 远东酒店信托投资组合旗下的酒店资产不但素质良好, 而且地点优越, 方便住客通往各大旅游景点, 商业 购物和文化地区, 以及医药保健设施 我们的资产主要是属于中高档酒店项目, 而这类项目具有一定的优势, 可受惠于新加坡旅游业的增长潜能 除了休闲旅游以外, 亚洲经济的蓬勃发展预料也会带动更多的商务旅游需求, 到访新加坡的商务旅客所占的比重预料将提高 我们对商务旅客的需求保持谨慎且乐观的态度, 相信这股需求将随着新加坡及其邻近国家的经济发展而维持在稳健的水平 乌节广场酒店 伊丽莎白酒店 黄金龙马酒店与昆西酒店受到一般企业客户的青睐, 这是因为它们的地点适中, 方便住客来往中央商业区及乌节路地区 刚刚投入第二年运作的绿洲大酒店将随着诺维娜医药枢纽的发展趋势而持续取得增长 樟宜村酒店与后港村酒店式公寓的位置靠近樟宜商业园与实里达航空园区等商业枢纽, 则可满足新加坡东部与北部的企业客户的需求 我们的其他服务公寓项目如中央广场村酒店式公寓 丽晶大厦与河滨村酒店式公寓将继续吸引那些需要住得靠近中央商业区的住客 FAR EAST HOSPITALITY TRUST

15 远东酒店信托 2012 年常年报告主席致辞 13 为未来增长作出投资 我们以满足休闲和商务旅客的需求作为出发点, 不断改善我们的工作流程和产品, 以增进竞争能力 我们正在推展一些资产提升计划以改善资产的表现 我们的目标是确保资产具有更高的营收能力, 并在长期内创造更大的价值 我们已为 2013 年拨出一笔资金作为装修 翻新及改善部分资产和设施用途, 以维持对休闲和商务旅客的吸引力 这些资金将用于装修酒店的客房和部分共用设施, 以及提升机械和电力基础设施 目前, 黄金龙马酒店和乌节广场酒店已经开展翻新工程 我们也将在 2013 年开始为雅柏酒店 樟宜村酒店和丽晶大厦展开翻新及资产提升工程 在推行各种措施来提高资产回报之际, 我们也定下目标, 希望通过收购第三方及保荐人的资产来扩大我们的资产组合 远东酒店信托由酒店和服务公寓组成的资产组合, 充分体现了我们的战略 -- 我们占有独特的优势与新加坡酒店业的发展趋势同步增长 我们致力于打造一个具备防御性的和有弹性的组合, 让远东酒店信托能够长期为合订证券持有人提供定期和稳定的收入 远东酒店信托已把其 2012 年 8 月 27 日至 2013 年 12 月 31 日期间应纳税收入的 100% 全数派发给证券持有人, 以后也将派发至少 90% 的应纳税收入给投资者 在资本管理方面, 基于审慎的资本和风险管理, 远东信托在债务的成本和期限之间取得了良好的平衡 在近期内, 我们仍然会面对一些挑战 虽然美国经济已显露一些复苏的迹象, 不过欧洲经济体仍受到主权债务问题的困扰 经济全面复苏的步伐缓慢, 可能会影响到企业的商业投资活动及商务旅行 亚太地区经济体的实力, 预料将为经济增长提供一定的支持 在新加坡, 政府已着手朝以生产力为主导的经济增长发展, 并致力于减少对外国劳工的依赖 这将给酒店业的人力供应与成本造成一定的压力, 尽管政府于 2013 年 3 月 1 日推行的加薪补贴计划, 将有助于舒缓工资成本上涨的部分压力 房地产投资信托管理人看好新加坡旅游业和酒店业的发展潜力, 并会继续致力于追求高素质且可持续增加收益的投资项目来扩展信托 致谢 远东酒店信托的成功上市要归功于许多人的共同努力 我非常感激董事会的同事们, 他们都提供了宝贵的意见和智慧 我们也要感谢所有企业客户和业务合作伙伴所给予的支持 我在此代表董事会向附属于远东机构集团的保荐人致谢 同时, 我也要感谢管理团队的奉献和努力 有了他们的支持和努力, 远东酒店信托的首次公开发售计划才得以顺利落实 最后, 我也要向你 -- 我们的合订证券持有人说声谢谢, 由衷感谢你们对我们的信任和信心, 谢谢你对远东酒店信托的投资 我有信心, 接下来的一年会是另一个丰收年, 而远东酒店信托将继续取得稳健的业绩表现 展望未来 作为一个专注于新加坡酒店和服务公寓的信托, 远东酒店信托持续处于有利的地位, 从新加坡酒店业市场的增长中受益, 毕竟新加坡仍是一个备受高度重视的商务和休闲旅游目的地 许文辉主席 ANNUAL REPORT 2012

16 14 FINANCIAL HIGHLIGHTS NET PROPERTY INCOME +0.2% S$38.8 million INCOME AVAILABLE FOR DISTRIBUTION +4.5% S$33.6 million DISTRIBUTION PER STAPLED SECURITY +4.5% 2.09 cents NET ASSET value per Stapled Security +4.3% 97 cents Actual Forecast Actual Forecast Actual Forecast December August 2012 (S$ 000) 38,783 38,694 (S$ 000) 33,646 32,172 (cents) (cents) Actual results are from 27 August 2012 to 31 December 2012 as Far East H-Trust was listed on SGX-ST on 27 August The forecast as disclosed in the prospectus has been prorated, where appropriate for the period from 27 August 2012 to 31 December 2012, after taking into consideration the respective master lease arrangements. FAR EAST HOSPITALITY TRUST

17 FINANCIAL HIGHLIGHTS 15 Statement Of Total Return S$ million Gross revenue 42.2 Net property income 38.8 Net income before fair value change 18.1 Distribution to Stapled Security Holders 33.6 Balance Sheet S$ million Total assets 2,215.0 Investment properties 2,158.4 Total liabilities Net assets 1,552.9 Key Financial Ratio Borrowings / Total assets 29.2% Interest cover ratio 1 Weighted average debt maturity 10.1 times 4.0 years 1 Defined as net property income divided by interest paid / payable to banks. Changi Village Hotel ANNUAL REPORT 2012

18 16 PERFORMANCE REVIEW 27 August December February 2013 Opening Price S$0.93 S$1.00 S$1.10 High S$0.98 S$1.00 S$1.10 Low S$0.95 S$1.00 S$1.09 Closing Price S$0.95 S$1.00 S$1.10 Volume 95,690,000 2,533,000 3,999,000 Listing on the SGX-ST Far East Hospitality Trust ( Far East H-Trust ), a stapled group comprising Far East Hospitality Real Estate Investment Trust and Far East Hospitality Business Trust launched its Initial Public Offering ( IPO ) on 17 August 2012, becoming the first and only Singapore-focused hospitality trust to be listed on the SGX-ST. It is backed by a committed and reputable sponsor - Far East Organization, Singapore s largest private property developer and one of the largest owneroperators of hospitality assets in the city-state. Far East H-Trust commenced trading on 27 August 2012, closing its first trading day at 95 Singapore cents, gaining 2.2% above the IPO price of 93 Singapore cents. Status Report on the use of IPO Proceeds In August 2012, Far East H-Trust raised gross proceeds of S$1,491.6 million from the initial public offering and issue of Stapled Securities to cornerstone investors and the Sponsor. The use of proceeds is in accordance with the stated use and is in accordance with the percentage allocated in the IPO prospectus, except for S$12.2 million which has been reallocated for asset enhancement purposes. This savings resulted from lower fees, spending on prospectus production, road show expenses and certain other expenses incurred in relation to the IPO. FAR EAST HOSPITALITY TRUST

19 PERFORMANCE REVIEW 17 Stock price movement and trading volume of Far East H-Trust Volume ( 000) Price (S$) Aug Voiume Sep Oct Nov Dec Jan Feb Price Stapled Securities Price Performance and Returns The primary objective of Far East H-Trust is to provide Stapled Securityholders with regular, stable and growing distributions on a quarterly basis. Far East H-Trust s policy is to distribute 100% of its taxable income for the Projection Year 2013 and at least 90% of its taxable income thereafter. Based on its Distribution per Stapled Security of 2.09 cents for the period from 27 August 2012 to 31 December 2012, the annualised distribution yield for Far East H-Trust is 6.5% based on the IPO price of S$0.93. In terms of stock price performance, Far East H-Trust stapled security climbed a healthy 7.5% from its IPO price of S$0.93 to close at S$1.00 on 31 December 2012, gaining further to close at S$1.10 on 28 February This translates to a market capitalisation of approximately S$1.6 billion and S$1.7 billion at closing on the respective dates. The graph above shows Far East H-Trust s average monthly closing price between 27 August 2012 and 28 February Industry Overview As a Singapore-focused hospitality trust, Far East H-Trust seeks to leverage on the country s stature as a highly regarded location for business travellers as well as leisure and medical tourists. In 2011, Singapore recorded 13.2 million visitor arrivals 1, a growth of 20.2% from a year earlier. In the area of business travel, Singapore s position as a key financial centre and its growing repute as a global meetings, incentives, conventions and exhibitions (MICE) hub are expected to boost the country s viability as a choice business destination. These business travellers typically require executive style hotel rooms or serviced residences for longerterm accommodation. In 2011, 34.4% of the visitors to Singapore are on business-related travel. 1 Leisure travel on the other hand, has gained on the back of significant investment to bolster the country s position as a premier tourist destination. Investments worth more than S$18 billion 1 for new as well as upcoming major projects are expected to provide stimulus for both the short to longerterm growth of the tourism and hospitality markets in Singapore. 1 Source: STB, Tourism Performance Report Quarter Four and Full Year 2011, Tourism Sector Performance for 2011 ANNUAL REPORT 2012

20 18 PERFORMANCE REVIEW Beyond the lure of tourist attractions in Singapore, the positive economic prospects of Asian countries are expected to drive the flow of outbound tourists from these countries to neighbouring destinations. As a premier tourist destination, Singapore potentially stands to benefit from this healthy trend to further stimulate the growth of the hospitality market. Singapore is also seeking to strengthen its position as a destination for medical tourism, targeting to be Asia s leading medical hub and a world-class destination for advanced patient care. According to market research consultant CBRE Pte Ltd, the compounded annual growth rate of medical tourist arrivals was 14.2% between 2005 and This growth is estimated to have accelerated to 17.4% to one million visitors from 2010 to Asset Portfolio and Value Far East H-Trust has a portfolio of 11 properties consisting of 7 Hotels and 4 Serviced Residences Portfolio of Properties Novena Medical Hub Bukit Timah Rd 6 Balestier Rd PIE CTE Civic & Cultural District KPE Tanglin Rd Orchard Road Shopping Belt Orchard Rd Singapore River Victoria St Raffles Blvd Rochor Rd ECP AYE Marina Bay Cruise Centre Central Region PORTFOLIO HOTELS 1 Albert Court Village Hotel 2 Landmark Village Hotel 3 The Quincy Hotel 4 The Elizabeth Hotel 5 Orchard Parade Hotel 6 Oasia Hotel Singapore 7 Changi Village Hotel PORTFOLIO SERVICED RESIDENCES 8 Regency House 9 Riverside Village Residences 10 Central Square Village Residences 11 Hougang Village Residences MRT STATION FAR EAST HOSPITALITY TRUST

21 PERFORMANCE REVIEW 19 Portfolio valuation breakdown by percentage as at 31 December 2012 Riverside Village 5.3% Albert Court 5.8% Regency House 7.6% Hougang Village 3.0% Changi Village 11.9% Central Square Village 8.7% The Elizabeth 8.9% The Quincy 3.9% Landmark Village 10.5% Orchard Parade 19.5% Oasia 14.9% with a total of 2,163 hotel rooms and 368 serviced residence units (includes serviced residence units designated for house use). The assets are marketed primarily as mid-tier and upscale hospitality properties, allowing Far East H-Trust to capture what is believed to be the fastest-growing, most profitable and scalable hospitality market segments. Most of the properties in the portfolio are located in the core central region: within the Orchard Road shopping belt, the Marina Bay and Singapore River as well as the civic and cultural districts, which cater to both corporate and leisure guests. Other Hotels are in proximity to healthcare facilities. Properties outside the central region largely cater to corporate guests requiring close access to the back-office operations of many large corporations. As at 31 December 2012, total value of investment properties grew to $2,158.4 million, up from $2,139.9 million at the IPO on 27 August Financial Performance In its first reporting, for the period from 27 August 2012 to 31 December 2012, Far East H-Trust achieved an Income Available for Distribution of S$33.6 million and Distribution per Stapled Security of 2.09 cents, exceeding its IPO forecast by 4.5%. The Gross Revenue was marginally below forecast, mainly due to the softer performance of the Serviced Residences. The underperformance was caused by macro uncertainties in the second half of 2012 when major companies held back spending in the face of the European debt crisis and the US Fiscal Cliff. Serviced Residences accounted for 19.6% or S$8.3 million of the overall portfolio revenue of S$42.2 million. Hotels contributed a significant 80.4% or S$33.9 million, exceeding forecast by 0.6%. The better performance was partly attributed to the strong rental income from the commercial space and significant increase in meetings and banquet business in the Hotels. ANNUAL REPORT 2012

22 20 PERFORMANCE REVIEW Net Property Income was 0.2% higher than forecast at S$38.8 million, a result of lower operating expenses. Active management of finance costs and other trust expenses also contributed to the higher than forecast Income Available for Distribution. The stapled group paid out to its Securityholders a Distribution per Stapled Security of 2.09 cents, which was 4.5% higher than forecast. Capital and Risk Management Far East H-Trust endeavours to maintain a strong balance sheet, employ an appropriate mix of debt and equity to finance acquisitions of properties, secure diversified funding sources by accessing both financial institutions and capital markets, optimise its cost of debt financing and utilise interest rate hedging strategies where appropriate; in order to reduce exposure to market volatility. Far East H-Trust seeks to optimise the capital structure and cost of capital, within the borrowing limits set out in the Property Fund Appendix, by employing an optimal capital structure using a combination of debt and equity in financing acquisitions of properties and asset enhancement. It adopts and maintains an appropriate aggregate leverage level to ensure optimal returns to Stapled Securityholders, while maintaining flexibility in respect of future capital expenditure or acquisitions. Far East H-REIT obtained an unsecured floating rate term loan facility of S$650 million and revolving credit facilities of $75 million from DBS Bank Limited, OCBC Bank Limted and HSBC Limited. The term loan facility has been fully drawn at IPO to finance the acquisition of properties with staggered debt maturities of 3, 5 and 7 years, while the revolving credit facility remains undrawn. As of 31 December 2012, gearing level was at 29.2%. In managing the interest rate exposure, Far East H-REIT has entered into interest rate swap contracts to fix the borrowing costs. The proportion of fixed rate loans stood at 54% as at balance sheet date. On 5 February 2013, Fitch Ratings accorded Far East H-Trust a debt rating of BBB- Long-Term Foreign and Local Currency Issuer Default Ratings with a Stable Outlook. With a credit rating, aggregate leverage limit can be increased to a maximum of 60% of the value of its deposited property, up from the previous limit of 35% in the absence of a credit rating. The credit rating by Fitch Ratings will therefore allow Far East H-Trust more flexibility in managing its capital structure to cater for future acquisitions. Actual Forecast 1 Variance (%) Gross Revenue ($ 000) 42,216 42,529 (0.7) Net Property Income ($ 000) 38,783 38, Income Available for Distribution ($ 000) 33,646 32, Distribution per Stapled Security (cents) The forecast figures are derived by pro-rating the forecast disclosed in the Prospectus for the period from 27 August 2012 to 31 December 2012, after taking into consideration the respective master lease arrangement. FAR EAST HOSPITALITY TRUST

23 PERFORMANCE REVIEW 21 Summary of Portfolio Performance - Hotels Actual Occupancy vs Forecast Actual ADR vs Forecast Actual RevPAR vs Forecast % S$ S$ Actual 2012 Forecast 2012 Actual 2012 Forecast 2012 Actual 2012 Forecast 2012 Business and Operations Review: Hotels While there was some pressure on average room rates, resulting in the average Revenue per Available Room ( RevPAR ) of $171 versus the forecast of $174, the Manager has actively managed the properties occupancy and ADR to optimise RevPAR. The higher revenue from the commercial space, the increased meetings and banquet business as well as the higher level of occupancy helped to offset the lower room revenue of the Hotels. Consequently, the Hotels performed better than forecast. Geographically, the North Asia and Southeast Asia segments collectively increased their market share within the Hotel portfolio, rising from 45.8% to 52.6% between 2011 and 2012 respectively. Hotels attracted more business travellers in Contribution from the corporate market segment increased to 48.3% from 43.6% a year earlier. Market Segmentation FY Hotels Corporate 48.3% North America 7.2% Oceania 7.9% Others 4.7% Southeast Asia 29.9% Hotels (by Revenue) South East Asia 11.2% Hotels (by Region) Leisure / Independent 51.7% Europe 16.4% North Asia 22.7% 1 Actual results are from 27 August to 31 December 2012 as Far East H-Trust was listed on 27 August ANNUAL REPORT 2012

24 22 PERFORMANCE REVIEW Summary of Portfolio Performance - Serviced Residences Actual Occupancy vs Forecast Actual ADR vs Forecast Actual RevPAR vs Forecast % S$ S$ Actual 2012 Forecast 2012 Actual 2012 Forecast 2012 Actual 2012 Forecast 2012 Business and Operations Review: Serviced Residences Performance of Serviced Residences was softer, as major companies held back commitments in the face of the European debt crisis and the US Fiscal Cliff, especially in Two of our properties which used to receive strong bookings from the Banking and Financial sector were particularly affected. Revenue per available serviced residence unit ( RevPAU ) was $204 as compared to $216 that was forecast in the Prospectus. The Banking and Finance industry is the largest segment by revenue contribution for our Serviced Residences. In 2012, it contributed 28.4% of total revenue, up from 27.3% a year earlier. The Serviced Residences diversified their client base by tapping into higher yielding independent traveller segment. These guests, together with leisure travellers, grew to 20% of the customer base as compared to 12.2% in the previous year. Market Segmentation FY Serviced Residences Leisure / Independent 20.0% Serviced Residences (by Revenue) Others 12.6% Logistics 2.3% Fast Moving Consumer Goods 5.4% Electronics & Manufacturing 6.0% Serviced Residences (by Industry) Banking & Finance 28.4% Corporate 80.0% Oil & Gas 17.0% Services 28.3% 1 Actual results are from 27 August to 31 December 2012 as Far East H-Trust was listed on 27 August FAR EAST HOSPITALITY TRUST

25 PERFORMANCE REVIEW 23 Business and Operations Review: Excluded Commercial Properties Far East H-Trust has a total of 262 commercial units distributed over 8 of the 11 properties, namely Albert Court Village Hotel, Changi Village Hotel, The Elizabeth Hotel, Landmark Village Hotel, Orchard Parade Hotel, Central Square Village Residences, Regency House, and Riverside Village Residences. These properties include office, serviced office, and retail components with leases primarily ranging from 1 to 3 years. The average occupancy for 2012 was 96.5%. The retail and office revenue outperformed the 2012 forecast by 7.5%, contributing 14.9% of the Portfolio s Gross Revenue. The higher performance of the commercial properties was due primarily to occupancies higher than forecast. The longer leases secured also bolstered the portfolio s performance. Asset Enhancement Initiatives As an ongoing strategy to enhance operational performance, asset enhancement programmes were progressively executed at selected Hotels and Serviced Residences. Hotels: Refurbishment works to upgrade 213 superior and deluxe hotel rooms at the Landmark Village Hotel that started in 2012 are expected to be completed by March Similar works to upgrade 101 hotel rooms in Orchard Parade Hotel were also carried out in the second half of 2012 and are expected to be completed by April Growth through Acquisitions Apart from the active asset management and enhancement strategy, FEO Hospitality Asset Management Pte Ltd, as REIT Manager, will source for and pursue asset acquisition opportunities which provide attractive cash flows and yields that satisfy the REIT Manager s investment mandate to enhance returns to Securityholders. To this end, the REIT Manager will actively seek to acquire suitable third party properties as well as tap the Sponsor s asset pipeline. On the acquisition front, in November , Far East H-Trust announced that it, together with a member of Far East Organization group of companies, entered into a non-binding memorandum of understanding with The Straits Trading Company Limited to acquire Rendezvous Grand Hotel Singapore and its retail component Rendezvous Gallery Singapore. Negotiations and due diligence are ongoing. The Managers will provide further details in subsequent announcements in accordance with the Listing Rules at appropriate times. LANDMARK VIllage Hotel Serviced Residences: In the second half of 2012, light refurbishment works were undertaken at Central Square Village Residences and Riverside Village Residences. This exercise involved 127 Serviced Residence units in Central Square Village Residences and 71 Serviced Residence units in Riverside Village Residences. The refurbishment work was completed in January Orchard Parade Hotel 2 Refer to SGXNet announcement on 26 November 2012 ANNUAL REPORT 2012

26 24 PROPERTY PORTFOLIO Hotels Property Albert Court Village Hotel Changi Village Hotel The Elizabeth Hotel Location Description 180 Albert Street, Singapore Albert Court Village Hotel is in a pre-war conservation development. The Straits Chinese carvings that adorn the hotel walls reflect the cultural heritage of its vicinity. The hotel is easily accessible by public transport and a short walk away from shopping malls and Sim Lim Square, a popular electronics shopping centre. 1 Netheravon Road, Singapore Changi Village Hotel is an idyllic retreat, set apart from other hotels in urban Singapore. It overlooks the sea, providing guests refreshing sea views while luxuriating in the hotel. Changi Village Hotel is an attractive venue for weddings. Number of guest rooms Latest valuation (S$ million as of 31 December 2012) Gross revenue for period 27 August - 31 December (S$ million) Lease tenure at listing date 75 years 65 years 75 years Approximate GFA / Strata Area (sq m) 11,426 22,826 11,723 Purchase Price (based on the Offering Price) (S$ million) Vendor & Master Lessee First Choice Properties Pte Ltd Far East Organization Centre Pte Ltd 24 Mount Elizabeth, Singapore The Elizabeth Hotel is designed with a distinct European accent. It is a short walk from Orchard Road, Singapore s famous shopping and entertainment belt; providing guests with a convenient and wide range of leisure and dining options. Golden Development Private Limited FAR EAST HOSPITALITY TRUST

27 PROPERTY PORTFOLIO 25 Landmark Village Hotel Oasia Hotel Singapore Orchard Parade Hotel The Quincy Hotel 390 Victoria Street, Singapore Landmark Village Hotel is located in the Arab Street- Kampong Glam heritage area, a popular tourist destination. The vibrant eateries, art galleries and boutiques in the nearby conservation buildings have given the area a new lease of life. 8 Sinaran Drive, Singapore Oasia Hotel Singapore is designed for both the business and leisure travellers and is strategically located in the prime Novena district, Singapore s premier medical hub. Guests have direct access to Novena MRT station for convenient connections to the Central Business District and major shopping belts in the city. 1 Tanglin Road, Singapore Orchard Parade Hotel s location near the famous Orchard Road provides guests with a wide variety of dining and shopping choices; a great appeal to both business and leisure travellers. Orchard Parade Hotel has received awards for its excellent service Mount Elizabeth, Singapore The Quincy Hotel is a hip boutique hotel designed for the busy business executive and the discerning leisure traveller. The Hotel was the 2012 winner of TripAdvisor s Travelers Choice award. Its proximity to Orchard Road provides guests with a wide range of facilities and shopping opportunities years 92 years 50 years 75 years 21,676 22,457 34,072 4, Golden Landmark Pte Ltd Transurban Properties Pte Ltd Far East Orchard Limited Golden Development Private Limited ANNUAL REPORT 2012

28 26 PROPERTY PORTFOLIO SERVICED RESIDENCES Property Location Description Number of Serviced Residence Units Latest valuation (S$ million as of 31 December 2012) Gross revenue for period 27 August - 31 December 2012 (S$ million) Lease tenure at listing date Approximate GFA / Strata Area (sq m) Purchase Price (based on the Offering Price) (S$ million) Vendor and Master Lessee Central Square Village Residences 20 Havelock Road, Singapore Central Square Village Residences is in a mixed-use development comprising commercial and residential components. The development accommodates shops and restaurants, and is within walking distance to the Clarke Quay MRT station. The historic Chinatown and the CBD are just a couple of stops away years 17, OPH Riverside Pte Ltd FAR EAST HOSPITALITY TRUST

29 PROPERTY PORTFOLIO 27 Hougang Village Residences Regency House Riverside Village Residences 1 Hougang Street 91, Singapore Hougang Village Residences is located in one of Singapore s popular suburbs. Facilities at the Serviced Residence include a swimming pool, Jacuzzi, gymnasium, and a tennis court. Situated next to Hougang One Mall, it provides residents convenient access to shopping, food outlets and a 24- hour supermarket. 121 Penang Road, Singapore Regency House is popular with young professionals. Located near Orchard Road, it is within walking distance from Somerset and Dhoby Ghaut MRT stations with direct access to Singapore s prime shopping belt and the CBD. The Serviced Residence also contains commercial components. 30 Robertson Quay, Singapore Riverside Village Residences is part of a development comprising commercial and residential spaces. Situated on the banks of the Singapore River, it is a walk away from the trendy dining and entertainment district of Robertson Quay. Residents can also connect to the rest of the island via the nearby Clarke Quay MRT station years 81 years 78 years 14,635 10,723 10, Serene Land Pte Ltd Oxley Hill Properties Pte Ltd Riverland Pte Ltd ANNUAL REPORT 2012

30 28 BOARD OF DIRECTORS From Top Left to Right Mr Koh Boon Hwee Chairman and Non-Executive Director Mr Huang Cheng Eng Independent Director Mr Kyle Lee Khai Fatt Independent Director From Bottom Left to Right Mr Willie Cheng Jue Hiang Lead Independent Director Mr Chia Boon Kuah Non-Executive Director Mr Wee Kheng Jin Non-Executive Director FAR EAST HOSPITALITY TRUST

31 BOARD OF DIRECTORS 29 Mr Koh Boon Hwee Chairman and Non-Executive Director Mr Koh Boon Hwee has extensive experience in corporate management. He is currently Chairman (executive) at Credence Capital Fund II (Cayman) Ltd and Credence Partners Pte Ltd. He is also currently Non-Executive Chairman of Sunningdale Tech Ltd (formerly known as Tech Group Asia Ltd ), Yeo Hiap Seng Limited, Yeo Hiap Seng (Malaysia) Berhad, AAC Technologies Holdings Inc, Rippledot Capital Advisers Pte Ltd and Far East Orchard Limited. He started his career in 1977 at Hewlett Packard and rose to become its Managing Director in Singapore, a post he held from 1985 to From 1991 to 2000, he was Executive Chairman of the Wuthelam Group, and from 2002 to 2009, Mr Koh was at S i2i Limited (formerly known as MediaRing Ltd ) where his last held position was Executive Director. He was responsible for overseeing the corporate strategy and management of these companies. Mr Koh has concurrently been with Sunningdale Tech Ltd ( Tech Group Asia Ltd ) since 2003, where he oversaw the operations of the company as Executive Chairman and Chief Executive Officer from 2005 to 2008 and where he now acts in a non-executive capacity as Chairman. Mr Koh was also the Non-Executive Chairman of the Singapore Telecom Group (SingTel) and its predecessor organisations from 1986 to From 2001 to 2005, Mr Koh served as Non- Executive Chairman of Singapore Airlines Limited, and from 2005 to 2010 as Non-Executive Chairman of DBS Group Holdings Ltd and DBS Bank Ltd. From 1996 to 2010, Mr Koh served on the board of Temasek Holdings Pte Ltd, and was a member of the Executive Committee from 1997 to Mr Koh is also a director of Agilent Technologies, Inc, as well as a number of local and overseas private companies and local non-profit organisations, including the Harvard Singapore Foundation, Nanyang Technological University Board of Trustees, EDB International Advisory Council, the Research, Innovation and Enterprise Council (RIEC) and William and Flora Hewlett Foundation. Mr Koh graduated from Imperial College with a Bachelor of Science (Mechanical Engineering), First Class Honours, in 1972, and obtained a Master in Business Administration with Distinction from Harvard Business School in Mr Huang Cheng Eng Independent Director Mr Huang Cheng Eng has extensive experience in commercial and marketing activities. From 1974 to 2010, Mr Huang was with Singapore Airlines Limited. While there, he had 10 years of overseas experience (from 1977 to 1987) in Taiwan, France and Hong Kong. From 1987 to 1996, he was overall in charge of air cargo and developed SIA Cargo into a full-fledged division. Thereafter, he was posted back to the passenger side of the airline business. Before his retirement in 2010, Mr Huang was Executive Vice President Marketing and the Regions, where he was overall in charge of commercial and marketing activities as well as all the overseas regions and offices of Singapore Airlines. He is a member (co-opt) of Children s Aid Society. Some of Mr Huang s past directorships include directorships with SATS Airport Services Pte Ltd, Virgin Atlantic Airways Pte Ltd and the Singapore Tourism Board. He was also chairman of Cargo Community Network Pte Ltd, SATS Catering Pte Ltd, SIA Cargo Pte Ltd and Silkair Pte Ltd. Mr Huang graduated from the University of Hawaii with a Bachelor of Business Administration in 1971 and obtained a Master in Business Administration from Michigan State University in ANNUAL REPORT 2012

32 30 BOARD OF DIRECTORS Mr Kyle Lee Khai Fatt Independent Director Mr Kyle Lee Khai Fatt has extensive experience in professional services comprising accounting, auditing and business advisory. Between 1976 and 1980, Mr Lee trained and qualified as a Chartered Accountant in London. He joined PricewaterhouseCoopers LLP and its legacy firm Price Waterhouse in Singapore in He retired in 2010 having served as a partner for 20 years. Prior to his retirement, Mr Lee led the firm s Advisory Practice for 5 years. He is also a director of Jurong International Holdings Pte Ltd. He is an independent Director of WBL Corporation Ltd and CapitaMall Trust Management Limited (as manager of CapitaMall Trust). Mr Lee is a Fellow of the Institute of Chartered Accountants in England and Wales and the Institute of Certified Public Accountants of Singapore. He holds a Master of Science (Distinction) in International Management, Master of Business Administration from the University of London and a Bachelor of Arts (Honours) in Business Studies from the Council for National Academic Awards in United Kingdom. Mr Willie Cheng Jue Hiang Lead Independent Director Mr Willie Cheng Jue Hiang has extensive experience in the fields of accountancy, management consulting, technology implementation and corporate governance. From 1977 to 2003, Mr Cheng was working at Accenture (and its predecessor, Arthur Andersen & Co). He started off in audit and subsequently transferred to consulting where he was involved with the design and implementation of missioncritical systems and business transformation for its clients in government, financial services and the high tech industries. Prior to his retirement in 2003, he was Managing Director of its Singapore office and Head of its Asian Communications & High-Tech practice, where he was responsible for overseeing the business of both divisions. Currently, Mr Cheng is a director of three groups of companies: (i) Singapore Press Holdings Ltd and three of its subsidiaries; SPH Interactive Pte Ltd, SPH Interactive International Pte Ltd, 701 Search Pte Ltd); (ii) three subsidiaries of Ministry of Health Holdings; Singapore Health Services Pte Ltd, Aescapulus Holdings Pte Ltd and Integrated Health Information Systems Pte Ltd and (iii) United Overseas Bank Ltd. He is presently Vice-Chairman of the Singapore Institute of Directors. He is also active in the non-profit sector and is chairman of Caritas Humanitarian Aid & Relief Initiatives, Singapore, as well as a board member in several charities. Mr Cheng graduated from the University of Singapore with a Bachelor of Accountancy in He is a Certified Public Accountant and Fellow of the Institute of Certified Public Accountants of Singapore, a Fellow of the Singapore Institute of Directors and Honorary Fellow of the Singapore Computer Society. FAR EAST HOSPITALITY TRUST

33 BOARD OF DIRECTORS 31 Mr Chia Boon Kuah Non-Executive Director Mr Chia Boon Kuah has extensive experience in hospitality, real estate development and investment. He is currently an Executive Director of Far East Organization, where he is responsible for overseeing the property sales business group and the hospitality business. He has been with Far East Organization since From 1975 to 2003, Mr Chia was with Singapore Airlines Limited, where his last held position was Area Vice President Singapore. He was responsible for the marketing and sales operations of Singapore. Mr Chia is a director of various companies in Far East Organization; such as Far East Real Estate Pte Ltd, Parc Visa Pte Ltd, OS Residence Pte Ltd and FEO Business Services Pte Ltd. He is also the President of Real Estate Developers Association of Singapore. He is a member of Singapore Polytechnic Board of Governors. Mr Chia obtained a Master in Business Administration from the National University of Singapore in Mr Wee Kheng Jin Non-Executive Director Mr Wee Kheng Jin is currently an Executive Director of Far East Organization. He has more than 33 years of finance experience in a variety of industries including banking, construction, hospitality services and real estate development. He started his career in 1978 with Price Waterhouse and worked there for 3 years before moving to United Engineers Limited. In 1984 he joined Citigroup and served in various positions; he was the Citibank Country Controller for several years and a board member of Citicorp Investment Bank Singapore Limited. He then moved to join Far East Organization in Mr Wee is presently appointed as a Non-Executive Director of Tung Lok Restaurants (2000) Ltd, Parkson Retail Asia Limited and Yeo Hiap Seng Limited. He is also a director of various companies in Far East Organization; such as Far East Hospitality Management Services Pte Ltd and Far East Property Services Pte Ltd. Mr Wee graduated from the University of Singapore with a degree in Accountancy in 1978 and has been a member of the Institute of Certified Public Accountants of Singapore since ANNUAL REPORT 2012

34 32 Management Team From Top Left to Right Mr Gerald Lee Hwee Keong Chief Executive Officer Mr Danny Peh Kok Kheng Chief Financial Officer and Head of Investor Relations Mr Bryant Lee Pettey Asset Manager From Bottom Left to Right Ms Lee Pei Yee Investment Manager Ms Jill Chay Suet Yee Compliance Manager and Company Secretary Ms Sandra Chia Sien Inn Finance Manager FAR EAST HOSPITALITY TRUST

35 Management Team 33 The management team has an extensive track record in sourcing, acquiring and operating hospitality assets in the hospitality industry. Their in-depth industry knowledge, established relationships and operational expertise in the hospitality sector will be a competitive advantage when sourcing for new acquisitions or executing various asset enhancement and operational strategies in order to optimise value to Stapled Securityholders. Mr Gerald Lee Hwee Keong Chief Executive Officer Mr Gerald Lee Hwee Keong has extensive experience in corporate management. He is currently employed by the REIT Manager, where he is responsible for overseeing hospitality asset management. From 1991 to 2005, Mr Lee was at Singapore Tourism Board, and his last held position was Assistant CEO (Leisure), where he was in charge of all the leisure divisions. He was seconded to the Ministry of Trade & Industry as Deputy Director from 2000 to 2001, where he was responsible for overseeing policies and industry development of the tourism and services sectors. Mr Lee was concurrently seconded to Sentosa Development Corporation as Director (Strategic Development) from 2001 to 2003, where he was in charge of strategic projects and redevelopment initiatives. From 2005 to 2010, Mr Lee was at CapitaLand Limited/The Ascott Limited. He was concurrently appointed Senior Vice President at CapitaLand from 2005 to 2006, where he started the corporate marketing department. His roles in Ascott included that of CEO (Europe), responsible for overseeing the business in that region, and Deputy CEO, responsible for overseeing operations of the group. From 2010 to 2011, Mr Lee was Executive Director of 08hundred LLP, where he was responsible for overseeing the company. Mr Lee graduated from Cornell University with a Bachelor of Science (with Distinction) in 1991, and obtained an Executive Master of Business Administration (with Distinction) from INSEAD and Tsinghua University in Mr Danny Peh Kok Kheng Chief Financial Officer and Head of Investor Relations Mr Danny Peh Kok Kheng has extensive experience in financial management. He is currently employed by the REIT Manager, where he is responsible for overseeing all the financial and accounting matters as well as investor relations. From 2000 to 2012, Mr Peh was at Far East Management Pte Ltd, and his last held position at Far East Management Pte Ltd was Director of Financial Management Division where he was responsible for overseeing the accounts, income tax and corporate secretarial departments within Far East Organization. From 2008 to 2012, Mr Peh was also the Chief Corporate Officer and Group Financial Controller of Far East Orchard Limited, where he was responsible for all corporate and financial matters and reported to the Chairman and Board of Directors. Mr Peh holds directorships in various companies in Far East Organization, including Far East Capital Ltd, Far East Capital Nominees Pte Ltd and OC Beauty Pte Ltd. Mr Peh was also a director of several subsidiaries of Far East Orchard Limited. Mr Peh obtained his professional degree from the Association of Chartered Certified Accountants, UK. He is a fellow member of the Association of Chartered Certified Accountants, UK as well as a member of the Institute of Certified Public Accountants of Singapore. ANNUAL REPORT 2012

36 34 Management Team Mr Bryant Lee Pettey Asset Manager Ms Lee Pei Yee Investment Manager Mr Bryant Lee Pettey has experience in the hospitality real estate industry. He is currently employed by the REIT Manager, where he is responsible for asset management. From 2003 to 2004, Mr Pettey was at The Hodgson Company as a project manager, where he was responsible for the management of development projects. From 2005 to 2009, Mr Pettey was at The January Group, and his last held position was Director of Development, where he was responsible for the acquisition and development of real estate. From 2010 to 2012, Mr Pettey was at W Hotels (Starwood), and his last held position was Director of Residences, where he was involved in the opening of The Residences at W Singapore Sentosa Cove. Mr Pettey graduated from Brigham Young University with a Bachelor of Science in 2000, and subsequently obtained a Master of Science in Real Estate Development from Columbia University in Ms Lee Pei Yee has experience in financial analysis and modelling as well as investment management. She is currently employed by the REIT Manager, where she is responsible for investment management. From 2011 to 2012, Ms Lee was at Far East Organization as a Manager Special Projects, where she was responsible for providing corporate finance support to local and overseas business expansion. From 2009 to 2011, Ms Lee was at Fortune Capital Management Pte Ltd as an Investment Manager. From 2007 to 2009, Ms Lee was with PrimePartners Asset Management Pte Ltd as an Assistant Manager Investments, where she assisted in evaluating potential investment deals. In 2007, Ms Lee was with KPMG Business Advisory Pte Ltd as a Senior Associate Business Performance Services, where she assisted in strategic consulting. From 2000 to 2005, Ms Lee was at the Ministry of Trade and Industry, and her last held position was Assistant Director International Business Development Division. Ms Lee graduated from the National University of Singapore with a Bachelor of Arts in 1999 and a Bachelor of Social Sciences (with Honours) in 2000, and obtained a Master in Business Administration (Dean s Honours List) from Nanyang Technological University in She also participated in The Global Manager in Europe Summer Module at ESSEC Business School - Paris in FAR EAST HOSPITALITY TRUST

37 Management Team 35 Ms Jill Chay Suet Yee Compliance Manager and Company Secretary Ms Jill Chay Suet Yee is employed by the REIT Manager, and has more than ten years experience in corporate secretarial and compliance. From 2007 to 2012, Ms Chay was with Ascendas Pte Ltd, where she provided corporate secretarial support to Ascendas Group of companies including SGX-ST and MAS reporting and compliance for Ascendas Real Estate Investment Trust and Ascendas India Trust. In 2006, Ms Chay was with Guocoland Limited, where she assisted the Head of Legal and Company Secretary on corporate secretarial matters of Guocoland Limited. From 2001 to 2005, Ms Chay was with Haw Par Corporation Limited, where she assisted the Company Secretary on corporate secretarial matters of Haw Par Group of companies. Ms Chay is a fellow member of the Singapore Association of the Institute of Chartered Secretaries and Administrators. She graduated from the University of Southern Queensland with a Bachelor of Business major in Applied Economics and Resource Management. Ms Sandra Chia Sien Inn Finance Manager Ms Sandra Chia Sien Inn has more than 20 years of experience in areas of financial and management accounting, financial planning and analysis, taxation, treasury, compliance and all financerelated matters. She is currently employed by the REIT Manager, where she is responsible for the statutory reporting and compliance, management accounting and analysis, taxation and treasury. From 2007 to 2012, Ms Chia was at Ascendas Property Fund Trustee Pte Ltd as Vice President, Finance, where she was responsible for the finance function including SGX-ST reporting and compliance for Ascendas India Trust. From 2000 to 2006, Ms Chia was at Equinix Asia Pacific Pte Ltd as Finance Manager, where she was responsible for statutory accounts, group consolidation, financial planning and analysis, management reporting, taxation, cash flow management and SOX compliance. Ms Chia holds a Bachelor of Applied Accounting from Oxford Brooke University (UK) and professional qualification from the Association of Chartered Certified Accountants (ACCA). She is a Certified Public Accountant with the Institute of Certified Public Accountants of Singapore. Orchard Parade Hotel ANNUAL REPORT 2012

38 36 INVESTOR RELATIONS Overview Far East Hospitality Trust ( Far East H-Trust ) is committed to communicate with Stapled Securityholders, analysts and the broader investing community in a timely and comprehensive manner. Far East H-Trust posts its corporate announcements on the SGXNET and Far East H-Trust s corporate website. Far East H-Trust strives to achieve highest standard of disclosures and transparency to help investors make informed investment decisions. Far East H-Trust also explores new platforms to reach out to existing and potential investors. Investor Outreach To enhance access to Management, Far East H-Trust shares the financial performance, strategy and outlook with investors, analysts and the media by hosting results briefings, through face-toface meetings, conference calls and road shows. Management also regularly attends local and overseas investor conferences to raise Far East H-Trust s profile (refer to events calendar for details). As a newly listed hospitality trust, Management places strong importance on attracting new investors and broadening its investor base. Since listing, Management has participated in conferences and non-deal road shows to meet potential investors and update existing investors. Far East H-Trust also facilitates site visits for fund managers and analysts for better insights of the quality and scale of Far East H-Trust s properties. Far East H-Trust is a component stock of FTSE ST Mid Cap Index from 18 March WEBSITE: Far East H-Trust website is a key information resource for retail and institutional investors. Announcements, press releases, financial results and results presentation slides can be downloaded from the website. URL : ENQUIRIES: Stapled Securityholders with queries relating to Far East Hospitality Trust may contact the investor relations team at: Telephone : (65) Emai : enquiry@fehtrust.com FAR EAST HOSPITALITY TRUST

39 INVESTOR RELATIONS 37 Investor Relations Events Date Event 2012 September DBS Vickers Investor Luncheon, Singapore 2013 January 2013 February 2013 March DBS Pulse of Asia Conference, Singapore Credit Suisse ASEAN Conference, Singapore Financial results media and analyst briefing, Singapore Investor Luncheon hosted by Goldman Sachs, Singapore HSBC non-deal roadshow, Hong Kong SGX Goldman Sachs Global Market Day 2013, Tokyo HSBC non-deal roadshow, Europe Brokerages covering Far East H-TRUST 1. BNP Paribas 4. HSBC 2. DBS Vickers Securities 5. OCBC 3. Goldman Sachs 6. Standard Chartered Bank AWARD Date 2013 February Event The Asset Triple A Regional Deal Awards, 2012 Best mid-cap equity / Best Reit REGENCY HOUSE ANNUAL REPORT 2012