Contents 01 Making The Difference 02 Our Structure 04 Financial Highlights 06 Growth Strategies 07 Significant Events 10 Letter from The Chairman 12 Letter from The Chairman (Chinese) 14 Board of Directors 18 Management Team 24 Our Portfolio 32 Acquisition of Rendezvous Hotel & Gallery 34 What Our Guests are Saying 38 Industry Overview 41 Performance Review 47 Investor Relations 49 Community Involvement 50 Corporate Goverance 75 Statement Of Policies And Practices 80 Corporate Directory 81 Financial Statements - Far East Hospitality Trust 130 Financial Statements - Trustee-Manager 148 Statistics of Stapled Securityholdings 151 Notice of Annual General Meeting 155 Proxy Form
Making The Difference At Far East Hospitality Trust, we believe that success comes with clear business focus, effective asset and operational management, and a well-balanced and diversified portfolio. As the key components that make a difference, these disciplined approaches have served us well, assuring our Securityholders of sustainable returns. 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 ). It commenced trading on SGX-ST on 27 August 2012. Far East H-Trust has a market capitalisation of approximately S$1,483 million and it has the largest diversified hospitality portfolio by asset value in Singapore as at 31 December 2013. Far East H-Trust comprises Far East Hospitality Real Estate Investment Trust ( Far East H-REIT ) and Far East Hospitality Business Trust ( Far East H-BT ). Far East H-REIT is managed by FEO Hospitality Asset Management Pte. Ltd. (the REIT Manager ) and Far East H-BT is managed by FEO Hospitality Trust Management Pte. Ltd. (the Trustee-Manager ). The issue managers for the initial public offering and listing of Far East H-Trust are DBS Bank Ltd, Goldman Sachs (Singapore) Pte Ltd and The Hong Kong and Shanghai Banking Corporation Limited, Singapore. Far East H-REIT has a portfolio of 12 properties consisting of 8 hotels and 4 serviced residences. Far East H-REIT s assets are valued at about S$2.47 billion as at 31 December 2013. 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. Far East H-BT is established with a view to be appointed as a master lessee of last resort. It remains dormant as at the date of this report.
02 Our Structure REIT BUSINESS TRUST 1 REIT MANAGER (FEO Hospitality Asset Management Pte. Ltd.) REIT TRUSTEE (DBS Trustee Limited) Provides management services Acts on behalf of holders of Far East H-REIT units FAR EAST H-REIT FAR EAST H-BT Provides trustee and management services TRUSTEE- MANAGER (FEO Hospitality Trust Management Pte. Ltd.) HOTEL PORTFOLIO SERVICED RESIDENCE PORTFOLIO EXCLUDED COMMERCIAL PREMISES Provides property management services MASTER LESSEES (Sponsor s companies) Provides Hotel and Serviced Residence management services HOTEL & SERVICED RESIDENCE OPERATOR & PROPERTY MANAGER (Far East Hospitality Management (S) Pte Ltd) Sponsor Investment Mandate Portfolio Far East Organization group of companies Hospitality and hospitality-related assets in Singapore 12 properties valued at approximately S$2.47 billion 8 hotel properties and 4 serviced residences 1 Dormant since Listing Date and master lessee of last resort. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
Regency House 03
04 Financial Highlights Gross Revenue 122.5 S$ million Net Property Income 111.9 S$ million (S) Actual 2013 Forecast 2013 1 (S) 122,478 Actual 2013 111,878 130,504 Forecast 2013 1 118,006 Income Available For Distribution 94.6 S$ million Distribution Per Stapled Security 5.64 Singapore cents (S) Actual 2013 Forecast 2013 1 (Singapore cents) 94,599 Actual 2013 5.64 97,666 Forecast 2013 1 5.82 BALANCE SHEET 2013 S$ MILLION 2012 S$ MILLION KEY FINANCIAL RATIO 2013 2012 Investment properties 2,474.7 2,158.4 Total assets 2,531.9 2,215.0 Gearing ratio (2) 30.9% 29.2% Interest cover ratio (3) 6.9 x 5.8 x Total liabilities 796.5 662.1 Net assets 1,735.3 1,552.9 Weighted average debt maturity Net asset value per Stapled Security (cents) 3.3 years 4.0 years 98.32 96.64 (1) The forecast figures were derived from the Far East H-Trust s Initial Public Offering Prospectus of 16 August 2012 and the Circular for acquisition of Rendezvous Property dated 15 May 2013. (2) Defined as : Total Borrowings / Trust Deposited Properties (3) Defined as : EBITDA / Interest Expense Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
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06 Growth Strategies The REIT Manager is committed to delivering long term sustainable and growing distributions through three key strategies: Value Adding Acquisitions The REIT Manager actively seeks out acquisition opportunities in the market. It pursues asset acquisition opportunities that provide attractive cash flows and yields in order to enhance the returns to Stapled Securityholders and improve future income and capital growth. Far East H-Trust has a strong acquisition pipeline of 7 properties, totalling approximately 705 hotel rooms and 599 serviced residence units, under a right of first refusal ( ROFR ) with its Sponsor. The ROFR properties offer acquisition opportunities for portfolio growth, potentially increasing the keys under ownership by 1,304 rooms, or 46%. In additon, Far East H-Trust seeks to grow its portfolio by acquiring third- party properties. Asset Management & Enhancement Strategy The REIT Manager regularly reviews the portfolio and leverages on the extensive experience of the Sponsor when embarking on refurbishment programmes. These asset enhancement initiatives aim to improve the attractiveness and operational performance of the properties, to increase patronage as well as the properties revenue per available room ( RevPAR ) and revenue per available unit ( RevPAU ). Asset enhancements are also intended to optimise space utilisation, and to lower operating expenses such as utilities costs. Far East H-Trust enjoys economies of scale as its portfolio grows. This is due to its pure focus on the Singapore hospitality market, and centralised shared services such as central reservation, revenue management and human resource management across its properties. Capital & Risk Management Strategy For capital and risk management, the REIT Manager intends to maintain a prudent level of borrowings while maximising returns for Stapled Securityholders. The REIT Manager endeavours to maintain a strong balance sheet with diversified funding sources. It seeks to reduce its cost of debt, utilise interest rate hedging strategies to reduce exposure to market volatility and employ an appropriate mix of debt and equity to finance acquisitions. The REIT Manager believes that this strategy puts Far East H-Trust in good stead to capitalize on any investment opportunities. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
07 Significant Events FEBRUARY 2013 APRIL 2013 AUGUST 2013 6th Far East H-Trust announced Distributable Income of S$33.6 million, exceeding forecast by 4.5% for its first reporting period from its date of listing on 27 August 2012 to 31 December 2012, DPS of 2.09 cents 26th 1st Annual General Meeting 1st Completion of 1st third-party acquisition - Rendezvous Grand Hotel Singapore & Rendezvous Gallery 19th Received Best mid-cap equity / Best Reit at The Asset Triple A Regional Deal Awards, 2012 1st Annual General Meeting MARCH 2013 4th Far East H-Trust accorded BBB- rating by Fitch Inc. APRIL 2013 4th Refurbishment of 213 rooms completed at Village Hotel Bugis Refurbished guest room at Village Hotel Bugis 15th Far East H-Trust signed agreement to acquire Rendezvous Grand Hotel Singapore and Rendezvous Gallery MAY 2013 8th Far East H-Trust announced Distributable Income of S$22.1 million for Q1 FY 2013 against its forecast of S$21.7 million, DPS of 1.38 cents 10th Enhancement of 97 rooms at Orchard Parade Hotel completed Refurbished guest room at Orchard Parade Hotel 31st Extraordinary General Meeting Rendezvous Grand Hotel Singapore s lobby lounge 7th Far East H-Trust announced Distributable Income of S$23.2 million for Q2 FY 2013, 4.8% above 1Q, DPS of 1.43 cents NOVEMBER 2013 8th Far East H-Trust announced Distributable Income of S$24.2 million for Q3 FY 2013, 4.3% above 2Q, DPS of 1.41 cents 13th Far East H-Trust was named Runner-Up - SIAS Most Transparent Company Award 2013, New Issues Category. Presentation at SIAS 14th Investors Choice Award Ceremony
08 Assurance in the expertise of our team Experienced team with hospitality, investment, financial and asset management expertise provides the Trust s Securityholders good reason to feel assured. Business sustainability is bolstered by the Trust s centrally managed operations, and supported by the network and resources of its sponsor, Far East Organization. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
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10 Letter from The Chairman Dear Stapled Securityholders On behalf of the Board of the REIT Manager and Trustee- Manager, I am pleased to report the progress that Far East Hospitality Trust ( Far East H-Trust ) has made in the financial year ended 31 December 2013 ( FY 2013 ). Review of 2013 The global economic landscape was challenging in 2013, as key advanced economies experienced subdued growth. In light of the protracted economic uncertainty, companies trimmed their travel budgets. The strengthening of the Singapore dollar also resulted in fewer bookings from Singapore s key tourist markets in the second half of 2013, including Indonesia and Malaysia. The challenging environment was further compounded by a new supply of over 3,200 new rooms (1). For FY 2013, the average occupancy of Far East H-Trust hotels continued to be healthy. However, revenue per available room ( RevPAR ) excluding Rendezvous Hotel Singapore was S$165, 9.9% lower than the forecast of S$183 for 2013 which was disclosed in our IPO Prospectus. Notwithstanding the challenging operating environment, Far East H-Trust s serviced residences achieved revenue per available unit ( RevPAU ) of S$226, 0.8% higher than the forecast RevPAU of S$225, due to both healthy occupancy and room rates. Far East H-Trust s excluded commercial premises (retail and office spaces) continued to provide the portfolio with (1) Far East H-Trust compilation a steady stream of income, supported by high occupancy rates. Property and trust expenses were well managed and came in 10.3% lower than our forecast. For FY 2013, Far East H-Trust delivered Income Available for Distribution of S$94.6 million and Distribution per Stapled Security ( DPS ) of 5.64 Singapore cents, a shortfall of 3.1% and 3.1% against our forecast respectively. Based on the closing price of S$0.84 on 31 December 2013, the DPS translates into an annualised yield of 6.7%. Our First Acquisition On 1 August 2013, we completed our acquisition of Rendezvous Hotel Singapore and Rendezvous Gallery (collectively Rendezvous Hotel ) from The Straits Trading Company Limited at a purchase consideration of S$264.3 million, which was part funded by the issuance of stapled securities and part funded by debt. With this successful maiden acquisition, Far East H-Trust enjoys greater income diversification through an enlarged hotel portfolio of 8 hotels with a total of 2,461 guest rooms, and an increase in the net lettable area of retail space to 14,044 square metres. Post-acquisition, we embarked on refurbishment of the reception area, lobby bar and club rooms to reposition the hotel as an art-inspired hotel, in synchronisation with the character of the precinct. To date, Rendezvous Hotel has performed in line with expectations, bringing value to our enlarged portfolio. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
11 Letter from The Chairman Proactive Asset Management In 2013, we completed asset enhancement initiatives ( AEI ) at two hotels Village Hotel Bugis and Orchard Parade Hotel, upgrading 213 Superior and Deluxe rooms and refurbishing 97 Superior rooms respectively. The enhancements have given the guest rooms a facelift, making for more enjoyable stays while catering for greater efficiency in housekeeping and maintenance. Over the next 12 months, we will continue to optimise the value of our existing assets and improve their competitiveness by implementing AEI in a holistic and progressive manner. We have planned for refurbishments at The Elizabeth Hotel, Village Hotel Albert Court, Village Hotel Changi and Regency House. Capital and Risk Management As at 31 December 2013, our gearing ratio stood at 30.9% which is well within The Monetary Authority of Singapore s Property Fund Appendix s gearing limit of 35%, which provides Far East H-Trust with adequate headroom for potential acquisitions. As part of our ongoing efforts to strengthen our financial position, we have fixed the interest rate of the S$132.15 million loan which was taken up for the acquisition of Rendezvous Hotel. As at 31 December 2013, we have locked in fixed interest rates for 62% of our total loan portfolio, or all of Far East H-Trust s debt maturity beyond 2016. The weighted average debt to maturity is 3.3 years and cost of debt is approximately 2.2% per annum. Cognisant of the imminent rise in interest rates, we will continue to adopt a prudent and proactive approach towards capital and risk management. Corporate Governance and Investor Relations Far East H-Trust was named runner-up in the Securities Investors Association of Singapore Most Transparent Company Award 2013, New Issues Category. This award is a testament of Far East H-Trust s dedication to corporate governance and investor relations, and we are honoured to receive this award in the first year of Far East H-Trust s listing on the SGX-ST. The Board of Directors of the REIT Manager will continue to strive towards upholding the highest standards of integrity and corporate governance. Looking Ahead The global economy is expected to show modest improvement in 2014. The World Bank forecasts global growth to rise from 2.4% in 2013 to 3.2%, backed by the recovery of the United States and European economies (2). As such, business travel is expected to increase and visitor arrivals should continue to show stable growth in the coming year (3). Furthermore, even-numbered years traditionally outperform oddnumbered years, due to the staging of major biennial events such as the Singapore Airshow and the Food and Hotel Asia exhibition. The opening of the Singapore Sports Hub in 2014 will also bring more world-class sporting events to Singapore. While about 2,572 new rooms are expected to come on stream in 2014, the supply is expected to be well absorbed by the demand from these events. On a regional level, ASEAN plans to achieve a single aviation market for the region by 2015 and intra-regional traffic is projected to rise at 7.5% a year. To capitalise on this expected growth, the Singapore Government is investing in new transportation infrastructure and tourism projects. Hence, we are positive of the longerterm outlook of the Singapore tourism market and will continue to stay focused on Singapore. Apart from maximising the operating performance of our existing assets, we will also strengthen our portfolio through holistic AEI for selected properties and pursue yield-accretive investments to enhance returns to our Stapled Securityholders. Our pipeline of quality properties, under a right of first refusal granted by our Sponsor, will continue to provide us with opportunities for growth. Appreciation On behalf of the Board, I wish to express our sincere appreciation to Mr Chia Boon Kuah, our Non-Executive Director, who has stepped down from the Board of the REIT Manager on 30 January 2014. His counsel and industry knowledge have been invaluable to the Board and Management, and we wish him every success in his endeavours. I would also like to welcome Mr Chng Kiong Huat to the Board. I am confident that his expertise and experience will contribute positively to Far East H-REIT and the REIT Manager. I would also like to thank my fellow board members for their advice and contribution throughout the year, and the employees of the REIT Manager for their dedication and hard work. We are also grateful to our Sponsor, Stapled Securityholders and Trustee for their trust and support. Koh Boon Hwee Chairman (2) Bloomberg, World Bank Raises Growth Forecasts as Richest Nations Strengthen, 15 January 2014 (3) Singapore Tourism Board, 22 April 2013
12 主席致辞 各位合订证券持有人, 我谨代表远东房地产投资及资产管理人以及远东信托经理人的董事, 向您提呈远东酒店及服务公寓信托 ( 简称 远东信托 ) 截至 2013 年 12 月 31 日 ( 简称 2013 财政年度 ) 的进展报告 回顾 2013 年由于关键的先进经济体增长减缓, 全球经济格局在 2013 年可谓充满挑战性 鉴于经济前景持续不明朗, 许多公司都削减了他们的差旅费预算 新元的强劲走势也导致源于新加坡主要的旅客市场如印尼和马来西亚在 2013 年下半年的住宿预订量出现下降的情况 与此同时, 这个充 (1) 满挑战的环境也在 3,200 多间新客房的供应源下进一步加剧竞争 远东信托旗下酒店在 2013 财政年度 的平均入住率继续保持在良好的水平 然而, 除了新加坡龙都酒店外, 我们所取得的平均各酒店单位营业收入 (Revenue per Available Room, 简称 RevPAR ) 为仅有 165 新元 此数据较原先在招股说明书中 2013 年预估 所披露的 183 新元平均各酒店单位收入金额低了 9.9% 尽管经营环境充满了挑战, 远东信托旗下的服务公寓物业仍然取得了可加的平均各公寓单位营业收入 (Revenue per Available Room, 简称 RevPAR ), 即 226 新元, 相较于 2013 年预估的 225 新元平均各公寓单位营业收入高出 0.8% 的收益增长 取得此成绩得功咎于良好的入住率和每日平均房价 此外, 高出租率使得远东信托旗下的商用物业 ( 即可供租用的零售商铺和办公间 ) 继续为我们的资产组合带来了稳健的收入 另外, 谨慎的支出管理使得远东信托的业物及信托支出较 2013 年所预估的低了 10.3% 远东信托在 2013 财政年取得了 9,460 万新元可派发盈利及 5.64 分 ( 新元 ) 每单位可派发盈利, 分别较 2013 年预估 所披露的低了 3.1% 和 3.1% 以远东信托年底的每合订证券 0.84 新元闭市价为基准, 每合订证券单位的年收益率为 6.7% 我们的首个收购项目我们在 2013 年 8 月 1 日成功地向海峡贸易有限公司收购了新加坡龙都酒店及其龙都商铺 ( 统称 龙都酒店 ), 收购价格为 2 亿 643 万新元 此收购款项, 一部分是由配售新合订证券资助, 另一部分则由银行贷款来资助 收购龙都酒店让远东信托旗下的酒店资产增加至 8 间酒店, 酒店总客房数达 2,461 间, 可供出租的零售商铺净面积增至 14,044 平方米 于此, 远东信托享有了更大的收入管道来源 为了将龙都酒店重新打造成一间富 有艺术风格并融入于邻境格调的酒店, 远东信托在收购后为酒店的接待处 大堂酒吧和行政客房进行翻新 迄今为止, 龙都酒店的表现除了与预期的表现相符, 也扩大了远东信托资产组合的价值 积极的资产管理我们也在 2013 年为旗下的另外两间酒店, 悦乐武吉士酒店和乌节广场酒店, 完成了资产增值活动 这些增值活动分别包括提升悦乐武吉士酒店的 213 间高级和豪华客房, 以及为乌节广场酒店的 97 间高级客房进行翻新 更新及翻新后的客房为客房带来焕然一新的面貌, 为客人提供了更轻松愉快的入住体验, 同时也提高客房服务和维修效率 在接下来的 12 个月里, 我们将通过全面和渐进的方式实施资产增值活动来继续优化现有资产的价值以及提升资产的竞争力 在这一方面, 我们已经为伊丽莎白酒店 悦乐雅柏酒店 悦乐樟宜酒店及 Regency House 的翻新工程进行了整体的规划 资本与风险管理截至 2013 年 12 月 31 日, 我们的负债比率为 30.9%, 低于新加坡金融管理局在房地产基金指导原则下所规定的 35% 的顶限, 这也为远东信托的潜在收购事项提供了相当充足的扩展空间 在致力强化本信托财务状况时, 我们已为收购龙都酒店所使用 (1) 远东信托的统计 Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
13 主席致辞 的 1 亿 3215 万新元银行贷款进行利率 固定 截至 2013 年 12 月 31 日为止, 债 务组合总额的 62% 或所有远东信托在 2016 年后到期的债务都已经顺利完成 其利率锁定 远东信托的加权平均债务期限为 3.3 年, 而平均借贷成本约 2.2% 年利率 由于意识到利率即将上升, 我们将继续审慎且积极地进行资本和风险管理 企业管治及投资者关系远东信托在 2013 年度是新加坡证券投资者协会颁发 最透明公司奖项 ( 新发行类别 ) 的得主之一 由于这是远东信托在新交所上市的第一年, 因此我们为能够获得这个奖项而感到荣幸 与此同时, 其奖项证明远东信托在企业管治坚持推行透明而优良的企业治理而且收到投资者的认可 信托管理人的董事局将会继续致力于坚守最高水平的诚信及企业管治 展望未来 2014 年, 全球经济预计将会有微弱的改善 在美国和欧洲经济复苏向好的经济势头下, 世界银行估计全球经济年增长率将会从 2013 年的 2.4% 上升到 3.2% (2) 因此, 商务差旅预计将会在未来的一年内有所上升, 而入境的旅客量也将继续呈现稳定的增长 (3) 再者, 与单数年相比, 双数年的大形展览活动较多, 例如新加坡航空展和亚洲食品与酒店及餐饮设备展等, 这将有望带动酒店与住宿 业 不仅如此, 将于 2014 开幕的新加坡体育城也将会为新加坡引入更多世界级的体育赛事而带动体育赛事的旅客 虽然我们将在 2014 年迎接大约 2,572 间新酒店客房, 但我们认为此供应量将能由这些活动所引起的需求所吸纳 在区域方面, 亚细安策划在 2015 年底之前为此区域成立单一的航空市场而区域内的航空交通量预计将逐年上升 7.5% 为了能把握此未來的增长机遇, 新加坡政府将在新的交通基础设施和旅游项目注入投资 因此我们对新加坡旅游市场的长期前景持有乐观的态度, 并且将继续专注于新加坡这个市场 除了提高现有资产的营业表现, 我们也将通过为所选择的资产进行全面性的资产增值活动来强化资产组合以及寻找能提升收益的投资项目, 从而提高合订证券持有人可获得的回报 此外, 保荐机构远东机构集团所授予的优先购买权的旗下资产将为远东信托继续提供增长的契机 致谢我在此代表董事局衷心感谢已经在 2014 年 1 月 30 日从远东房地产投资及资产信托管理人董事局卸下董事职务的非执行董事, 谢文华先生 他为董事局及管理层提供了许多宝贵的意见和业界知识 在此, 我衷心祝福他在未来的事业取得成功 另外, 我也代表董事局欢迎莊强发先生加入 董事局 我深信他的专业知识和经验将使远东信托以及远东房地产投资及资产信托管理人获益良多 我也想借此机会在这里感谢董事局成员们在过去一年里所提供的意见和贡献, 以及远东房地产投资及资产信托管理人旗下职员所付出的辛勤 最后, 我衷心的感激保荐机构远东机构集团 合订证券持有人及受托人一直以来所给予的信任和支持 许文辉主席 (2) (3) 彭博通讯社, 富裕经济体的强化 : 世行提高经济增长率的预估 2014 年 1 月 15 日新加坡旅游局, 2013 年 4 月 22 日
14 Board of Directors 5 6 from 2005 to 2010 as Non-Executive Chairman of DBS Group Holdings Ltd and DBS Bank Ltd. 4 3 2 1 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 2010. 1. MR KOH BOON HWEE Non-Independent Chairman REIT Manager Board and Trustee-Manager Board Mr Koh Boon Hwee was appointed as a Director and Chairman of the REIT Manager Board and Trustee-Manager Board in January 2011 and April 2012 respectively. Mr Koh has extensive experience in corporate management. He is currently the Non-Executive Chairman of AAC Technologies Holdings Inc., Agilent Technologies, Inc., Far East Orchard Limited, Sunningdale Tech Ltd and Yeo Hiap Seng Limited. Mr Koh also holds directorships in CM Houlder Insurance Brokers (Singapore) Pte Ltd, CM Houlder (SEA) Pte Ltd, Credence Capital Fund II (Cayman) Ltd, Credence Partners Pte Ltd, First Spring Ltd Rippledot Capital Advisers Pte Ltd, Rippledot Capital Management Pte Ltd, The Genomic Trust Pte Ltd and Ge-No-Me Pte Ltd. Over the last 3 years, he held directorship in Yeo Hiap Seng (Malaysia) Berhad. 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 1990. 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 (formerly known as 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 t0 2001. From 2001 to 2005, Mr Koh served as Non-Executive Chairman of Singapore Airlines Limited, and Outside the corporate sector, Mr Koh is also active in several non-profit organisations, including the Academy of Engineering Singapore, EDB International Advisory Council, Harvard Singapore Foundation, Nanyang Technological University Board of Trustees, Research, Innovation & Enterprise Council and The 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 1976. 2. MR WILLIE CHENG JUE HIANG Lead Independent Director REIT Manager Board and Trustee-Manager Board Chairman of the Audit Committee of the REIT Manager Mr Willie Cheng was appointed as a Director of the REIT Manager Board in July 2012 and was subsequently appointed as Lead Independent Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
15 Board of Directors From left to right: Mr Huang Cheng Eng, Mr Kyle Lee Khai Fatt, Mr Wee Kheng Jin, Mr Willie Cheng Jue Hiang, Mr Chng Kiong Huat and Mr Koh Boon Hwee
16 Board of Directors 4 3 5 6 2 1 3. MR KYLE LEE KHAI FATT Independent Director REIT Manager Board and Trustee-Manager Board Member of the Audit Committee of the REIT Manager Director in February 2013. He was appointed as a Director of the Trustee-Manager Board in April 2012 and subsequently appointed as Lead Independent Director in February 2013. Mr Cheng has extensive experience in the fields of accountancy, management consulting, technology implementation and corporate governance. Mr Cheng is presently a Director of United Overseas Bank Ltd. He also holds directorships in several private limited companies including Singapore Health Services Pte Ltd, Aescapulus Holdings Pte Ltd and Integrated Health Information Systems Pte Ltd. Over the last 3 years, he held directorships in Singapore Press Holdings Limited and several of its subsidiaries. Prior to his retirement in 2003, Mr Cheng was Managing Director of Accenture s Singapore office and Head of its Asian Communications & High-Tech practice, where he was responsible for overseeing the business of both divisions. During his stint at Accenture (and its predecessor, Arthur Andersen & Co) from 1977 to 2003, Mr Cheng was involved in audit as well as consulting, where he was involved in the design and implementation of mission-critical systems and business transformation for its clients in government, financial services and the high tech industries. Outside the corporate sector, Mr Cheng is also active in several non-profit organisations including the ApVentures, Archdiocesan Land & Properties Singapore, Caritas Humanitarian Aid & Relief Initatives, Singapore, Catholic Foundation, Council For Third Age Ltd, CSCC Agape Fund, NTUC Eldercare Cooperative Ltd, Singapore Institute of Directors, SymAsia Foundation Ltd, SymAsia Singapore Fund and The Courage Fund. Mr Cheng graduated from the University of Singapore with a Bachelor of Accountancy in 1977. He is a Fellow of the Institute of Singapore Chartered Accountants, Singapore Institute of Directors and the Singapore Computer Society. Mr Kyle Lee was appointed to the REIT Manager Board and Trustee-Manager Board in July 2012. He has extensive experience in professional services, comprising accounting, auditing and business advisory. He is presently a Director of CapitaMall Trust Management Limited (as manager of CapitaMall Trust) and MFS Technology Ltd. Over the last 3 years, Mr Lee held directorships in Jurong International Holdings Pte Ltd and WBL Corporation Limited. Prior to his retirement in 2010, Mr Lee served as a partner at PricewaterhouseCoopers LLP for 20 years and led the firm s Advisory Practice for 5 years. He started out at its legacy firm, Price Waterhouse, in Singapore in 1981, after being trained and qualified as a Chartered Accountant in London between 1976 and 1980. Outside the corporate sector, Mr Lee is an Audit Committee Member (co-opt) of the National Art Gallery. Mr Lee graduated with a Bachelor of Arts with Honours in Business Studies from Council for National Academic Awards (UK), Polytechnic of the South Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
17 Board of Directors Bank. He has also obtained a Master of Science with Distinction in International Management and a Master of Business Administration from the University of London. In addition, he has obtained a Diploma in Management from Imperial College of Science. Mr Lee is a Fellow of the Institute of Chartered Accountants in England and Wales and the Institute of Singapore Chartered Accountants. 4. MR HUANG CHENG ENG Independent Director REIT Manager Board and Trustee-Manager Board Member of the Audit Committee of the REIT Manager Mr Huang Cheng Eng was appointed a Director of the REIT Manager Board and Trustee-Manager Board in July 2012 and April 2012 respectively. Mr Huang has extensive experience in commercial and marketing activities. Before his retirement in 2010, Mr Huang was Executive Vice President Marketing and the Regions with the Singapore Airlines Limited, where he was overall in charge of commercial and marketing activities as well as the overseas offices of Singapore Airlines Limited. From 1987 to 1996, he was overall in charge of air cargo and developed SIA Cargo into a full-fledged division. During his stint at Singapore Airlines, he also amassed 10 years of overseas experience, working in Taiwan, France and Hong Kong from 1977 to 1987. Outside the corporate sector, Mr Huang is a member (co-opt) of Children s Aid Society and a council member of Singapore Bowling Council. 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 1973. 5. MR WEE KHENG JIN Non-Executive Director REIT Manager Board and Trustee-Manager Board Mr Wee Kheng Jin was appointed as a Director of the REIT Manager Board and Trustee-Manager Board in January 2011 and July 2012 respectively. He is presently a Director of Parkson Retail Asia Limited and Yeo Hiap Seng Limited. He is also a Director of various companies under Far East Organization such as Far East Hospitality Management Services Pte Ltd and Far East Property Services Pte Ltd. Over the last 3 years, Mr Wee held directorship in Tung Lok Restaurants (2000) Ltd. Mr Wee has more than 33 years of finance experience in a variety of industries including banking, construction, hospitality services and real estate development. He joined Far East Organization in 2000 and is currently an Executive Director. Prior to joining Far East Organization, he was Citibank s Country Controller for several years and a board member of Citicorp Investment Bank Singapore Limited. Mr Wee started his career in 1978 with Price Waterhouse and worked there for 3 years before joining United Engineering Limited. Mr Wee graduated from the University of Singapore with a degree in Accountancy in 1978 and is a member of the Institute of Singapore Chartered Accountants. 6. MR CHNG KIONG HUAT Non-Executive Director REIT Manager Board Mr Chng Kiong Huat was appointed as a Director of the REIT Manager Board in February 2014. Mr Chng has extensive experience in asset management including product development, project management, quality management, customer service, estate management and property enhancement. Since joining Far East Organization in 1993, he has held various positions and is presently an Executive Director of the Property Services Division. Mr Chng has a Bachelor of Arts (Architecture Studies) and a Bachelor of Architecture (Hons) from the National University of Singapore and a LLB (Hons) from the University of London. He has also completed the Stanford Executive Program from Stanford University. He was conferred as a registered architect by the Singapore Board of Architects in 1996.
18 Management Team From left to right: Ms Sandra Chia Sien Inn, Ms Lee Pei Yee, Mr Gregory Sim Chee Wah, Mr Bryant Lee Pettey, Ms Denise Wong Xiao Fen, Ms Jill Chay Suet Yee and Mr Gerald Lee Hwee Keong Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
19 Management Team 1. MR GERALD LEE HWEE KEONG Chief Executive Officer Mr Gerald Lee joined Far East Organization in 2011, and is currently employed by the REIT Manager, where he is principally responsible for the management and conduct of the business of Far East H-Trust. From 1991 to 2005, Mr Lee was with the 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 seconded to Sentosa Development Corporation as Director (Strategic Development) from 2001 to 2003, where he was in charge of strategic projects and redevelopment initiatives. 6 4 2 3 7 5 From 2005 to 2010, Mr Lee was with CapitaLand Limited/The Ascott Limited. He was 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 growing 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), and obtained an Executive Master of Business Administration (with Distinction) from INSEAD and Tsinghua University. 1 2. MR GREGORY SIM CHEE WAH Chief Financial Officer and Head of Investor Relations Mr Gregory Sim has more than 18 years of accounting, financial operations and management experience. He is currently employed by the REIT Manager, where he is responsible for overseeing all the financial, accounting and investor relations matters of Far East H-Trust. Mr Sim joined Far East Organization in June 2006, where he served as Deputy Director of Management Services. Mr Sim had oversight of management reporting, yield management, financial analysis and control of Far East Organization s portfolio of investment properties in hospitality; residential and commercial leasing business; as well as franchised food and restaurants business. He also assisted in the corporate finance activities of these businesses. From February 2001 to June 2006, Mr Sim was with SembCorp Industries Ltd. In his last held position as Assistant Vice President of Group Finance Operations, he was responsible for financial operations, budgetary control, statutory and management reporting of the company and some of its subsidiaries. He also assisted in corporate finance activities.
20 Management Team 2 7 5 where she was responsible for providing corporate finance support to local and overseas business expansion. 6 Mr Sim graduated with a Bachelor of Accountancy (Merit) from Nanyang Technological University in 1995. He is a member of the Institute of Singapore Chartered Accountants. 3. MR BRYANT LEE PETTEY Asset Manager Mr Bryant 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 2010 to 2012, Mr Pettey was with W Hotels (Starwood), and his last held position was Director of Residences, where he was involved in the preopening of The Residences at W Singapore Sentosa Cove. From 2005 to 2009, Mr Pettey was with The January Group, and his last held position was Director of Development, where he was responsible for the 4 3 acquisition and development of mixed-use hospitality projects. From 2003 to 2004, Mr Pettey was with The Hodgson Company as a project manager, where he was responsible for the management of development projects. 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 2005. 4. MS LEE PEI YEE Investment Manager 1 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. Ms Lee joined Far East Organization in 2011 as a Manager Special Projects, From 2009 to 2011, Ms Lee was with 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 with 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 2007. She also participated in The Global Manager in Europe Summer Module at ESSEC Business School - Paris in 2006. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
21 Management Team 5. MS JILL CHAY SUET YEE Compliance Manager and Company Secretary Ms Jill Chay is employed by the REIT Manager, and has more than 10 years experience in corporate secretarial and compliance. From 2007 to 2012, Ms Chay was with Ascendas Pte Ltd, where she provided corporate secretarial and compliance support to Ascendas Group of companies including listed on SGX-ST, 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. 6. MS SANDRA CHIA SIEN INN Finance Manager Ms Sandra Chia has more than 20 years of experience in the areas of financial and management accounting, financial planning and analysis, taxation, treasury, compliance and all finance related 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 Assistant 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 with 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 member of the Institute of Singapore Chartered Accountants. 7. MS DENISE WONG XIAO FEN Analyst & Investor Relations Executive Ms Denise Wong is experienced in the areas of investor and public relations, financial sales and marketing. She is employed by the REIT Manager where she assists in the areas of investor relations and asset management. From 2011 to 2013, Ms Wong was a Consultant at Financial PR Pte Ltd, where she provided investor relations counsel to the top management of Singapore-listed companies in the real estate, construction and technology sectors. Ms Wong was also involved in preparing companies for listing on the SGX, both on the Catalist and Mainboard. From 2010 to 2011, Ms Wong was a Financial Planning Manager at HSBC Bank, where she managed a portfolio of customers within the emerging affluent business segment. Ms Wong obtained a Bachelor of Business Management from the Singapore Management University, with majors in Finance (Wealth Management) and Marketing. She also attended the International Student Exchange Programme at the University of Maastricht, Netherlands.
22 Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
23 Confidence in the diversity of our collection Income stability and growth are ensured through the Trust s wellbalanced portfolio comprising hotels, serviced residences and commercial spaces. Positioned for upswings in the tourism sector and wellsupported by the stability that comes with extended-stay accommodation, the Trust captures opportunities that deliver optimised returns to its Securityholders.
24 Our Portfolio Far East H-Trust has 2,461 hotel rooms and 368 serviced residence units in its portfolio, offering investors an opportunity to invest in the largest portfolio of hospitality assets in Singapore by asset value. The portfolio provides an attractive investment opportunity for investors to benefit from a balanced portfolio of hospitality assets targeting both short-term stays in relation to the hotels and longerterm stays in relation to the serviced residences. 8 2,461 368 4Hotels Serviced Residences SERVICED RESIDENCE UNITS NET LETTABLE AREA (SQM) S$ 2.47 billion 14,044 6,986 Retail Office PROPERTIES HOTEL ROOMS VALUATION Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
The Quincy Hotel 25
26 Our Portfolio - Hotels VILLAGE HOTEL ALBERT COURT 180 Albert Street, Singapore 189971 Village Hotel Albert Court is 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 is a short walk away from shopping malls. No of guest rooms: 210 GFA/strata area (sq m): 11,426 Gross revenue for FY2013 (S$ million): 5.8 Remaining lease tenure (years): 74 Valuation as at 31 Dec 2013 (S$ million): 128.0 Purchase price (S$ million): 120.7 Master lessee: First Choice Properties Pte Ltd VILLAGE HOTEL BUGIS 390 Victoria Street, Singapore 188061 Village Hotel Bugis 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. No of guest rooms: 393 GFA/strata area (sq m): 21,676 Gross revenue for FY2013 (S$ million): 12.1 Remaining lease tenure (years): 65 Valuation as at 31 Dec 2013 (S$ million): 230.0 Purchase price (S$ million): 218.4 Master lessee: Golden Landmark Pte Ltd Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
27 Our Portfolio - Hotels VILLAGE HOTEL CHANGI 1 Netheravon Road, Singapore 508502 Village Hotel Changi is an idyllic retreat, set apart from other hotels in urban Singapore. It overlooks the sea, providing guests with refreshing sea views while luxuriating in the hotel. Village Hotel Changi is an attractive venue for conferences, corporate meetings and weddings. No of guest rooms: 380 GFA/strata area (sq m): 22,826 Gross revenue for FY2013 (S$ million): 12.4 Remaining lease tenure (years): 64 Valuation as at 31 Dec 2013 (S$ million): 255.0 Purchase price (S$ million): 238.5 Master lessee: Far East Organization Centre Pte Ltd THE ELIZABETH HOTEL 24 Mouth Elizabeth, Singapore 228518 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 wide range of leisure and dining options. No of guest rooms: 256 GFA/strata area (sq m): 11,723 Gross revenue for FY2013 (S$ million): 9.1 Remaining lease tenure (years): 74 Valuation as at 31 Dec 2013 (S$ million): 193.0 Purchase price (S$ million): 186.7 Master lessee: Golden Development Private Limited
28 Our Portfolio - Hotels OASIA HOTEL SINGAPORE 8 Sinaran Drive, Singapore 307470 Oasia Hotel Singapore is designed for both business and leisure travellers and is strategically located in the 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. No of guest rooms: 428 GFA/strata area (sq m): 22,457 Gross revenue for FY2013 (S$ million): 18.2 Remaining lease tenure (years): 91 Valuation as at 31 Dec 2013 (S$ million): 330.0 Purchase price (S$ million): 318.2 Master lessee: Transurban Properties Pte Ltd ORCHARD PARADE HOTEL 1 Tanglin Road, Singapore 247905 Orchard Parade Hotel is located near the famous Orchard Road providing 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. No of guest rooms: 388 GFA/strata area (sq m): 34,072 Gross revenue for FY2013 (S$ million): 18.2 Remaining lease tenure (years): 49 Valuation as at 31 Dec 2013 (S$ million): 428.0 Purchase price (S$ million): 412.5 Master lessee: Far East Orchard Limited Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
29 Our Portfolio - Hotels THE QUINCY HOTEL 22 Mouth Elizabeth, Singapore 228517 The Quincy Hotel is a hip boutique hotel designed for busy business executives and discerning leisure travellers. 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. No of guest rooms: 108 GFA/strata area (sq m): 4,810 Gross revenue for FY2013 (S$ million): 4.0 Remaining lease tenure (years): 74 Valuation as at 31 Dec 2013 (S$ million): 86.0 Purchase price (S$ million): 82.3 Master lessee: Golden Development Private Limited RENDEZVOUS HOTEL SINGAPORE 9 Bras Basah Road, Singapore 189559 Rendezvous Hotel Singapore is an upscale business and leisure hotel located in the heart of the art and cultural precinct with easy access to the business and shopping districts. The Dhoby Ghaut and Bras Basah MRT stations are a five minutes walk away. In addition, the proposed Bencoolen MRT station is located towards the south-eastern corner of the property and is expected to be completed by 2017. No of guest rooms: 298 GFA/strata area (sq m): 19,720 Gross revenue for FY2013 (S$ million): 4.8 Remaining lease tenure (years): 70 Valuation as at 31 Dec 2013 (S$ million): 277.0 Purchase price (S$ million): 264.3 Master lessee: Serene Land Pte Ltd
30 Our Portfolio - Serviced Residences VILLAGE RESIDENCE CLARKE QUAY 20 Havelock Road, Singapore 059765 Village Residence Clarke Quay is in a mixed-use development comprising commercial and residential components. The commercial component includes offices, shops and restaurants. Village Residence Clarke Quay is within walking distance to Clarke Quay MRT and the historic Chinatown, and is close to the Central Business District. No of guest rooms: 128 GFA/strata area (sq m): 17,858 Gross revenue for FY2013 (S$ million): 6.1 Remaining lease tenure (years): 79 Valuation as at 31 Dec 2013 (S$ million): 202.2 Purchase price (S$ million): 183.3 Master lessee: OPH Riverside Pte Ltd VILLAGE RESIDENCE HOUGANG 1 Hougang Street 91, Singapore 538692 Village Residence Hougang 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 hypermart. No of guest rooms: 78 GFA/strata area (sq m): 14,635 Gross revenue for FY2013 (S$ million): 3.4 Remaining lease tenure (years): 80 Valuation as at 31 Dec 2013 (S$ million): 67.3 Purchase price (S$ million): 64.7 Master lessee: Serene Land Pte Ltd Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
31 Our Portfolio - Serviced Residences VILLAGE RESIDENCE ROBERTSON QUAY 30 Robertson Quay, Singapore 238251 Village Residence Robertson Quay is part of a development comprising commercial and residential spaces. Situated on the bank of the Singapore River, it is within 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. No of guest rooms: 72 GFA/strata area (sq m): 10,570 Gross revenue for FY2013 (S$ million): 3.8 Remaining lease tenure (years): 77 Valuation as at 31 Dec 2013 (S$ million): 114.7 Purchase price (S$ million): 113.2 Master lessee: Riverland Pte Ltd REGENCY HOUSE 121 Penang Road, Singapore 238464 Located near Orchard Road, Regency House is popular with young professionals. It is within walking distance from Somerset and Dhoby Ghaut MRT stations, offering easy access to Singapore s prime shopping belt and the CBD. The development also comprises commercial spaces. No of guest rooms: 90 GFA/strata area (sq m): 10,723 Gross revenue for FY2013 (S$ million): 4.7 Remaining lease tenure (years): 80 Valuation as at 31 Dec 2013 (S$ million): 163.5 Purchase price (S$ million): 166.4 Master lessee: Oxley Hill Properties Pte Ltd
32 Acquisition of Rendezvous Hotel & Gallery On 1 August 2013, Far East H-Trust completed the acquisition of Rendezvous Hotel Singapore and Rendezvous Gallery from The Straits Trading Company Limited ( STC ), the maiden acquisition since the Trust s IPO. The 70-year leasehold property was purchased for S$264.3 million, funded with the proceeds from the issuance of new Stapled Securities to a subsidiary of STC and a member of Far East Organization group of companies, and debt facilities. Location 9 Bras Basah Road, Singapore 189559 Market segment Upscale Leasehold tenure 70 years from 1 August 2013 Retail net floor area 2,295 sq m Number of available rooms 298 Valuation as at 31 December 2013 Purchase consideration Fixed rent (per annum) Variable rent (per annum) Vendors Master lessee Term of master lease (years) S$277.0 million S$264.3 million S$6.5 million 33.0% of Gross Operating Revenue and 25.0% of Gross Operating Profit less the Fixed Rent Hotel Rendezvous Private Limited and Rendezvous Properties Private Limited Serene Land Pte Ltd 20 years plus an option to renew for another 20 years at the master lessee s discretion Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
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34 What Our Guests are Saying Oasia Hotel Singapore is a nominee of World Luxury Hotel Awards 2014 Nice hotel with good facilities and service. Train station is just located below the hotel making transportation easily accessible. Two malls with good eateries just across. There are also fast food outlets for the junkies. Convenience store is also available. For those keen on trying their luck in winning the lottery, there is a lottery counter in the convenience store though there is a long queue which in all fairness clears quickly. The Quincy Hotel won the 2014 Travellers Choice Award I booked a staycation to celebrate my girlfriend s birthday at Quincy, hoping to have a quiet and rejuvenating weekend. Our enthusiasm was uphold with the excellent hotel stay over at Quincy. Zydney, the hotel staff, helped us with the pre-booking and greeted us at the check-in. She even remembered my request for baking classes preference. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
35 What Our Guests are Saying Rendezvous Hotel Singapore won the 2013 Certificate of Excellence Award by Tripadvisor Nice hotel, modern updated rooms. Great location. The restaurant buffet is popular with locals. Flight crews use this hotel. Walk up Orchard Road and slide into the malls. Very busy area. Everything nearby. Regency House won the 2013 Certificate of Excellence Award by Tripadvisor My partner and I stayed in the Regency for 6 weeks at the start of our relocation to Singapore, while we searched for a permanent place to live. We received a very warm welcome from the Reception Desk staff on arrival and for the rest of our stay, they were extremely helpful, be it in giving advice or resolving any issues that we had.
36 Reliance on the focus of the Trust With a hospitality portfolio comprising both mid-tier and upscale properties in Singapore the Trust is focused on one of industry s fastest growing segments in a market wellsupported by leisure and business travel. The quality of our assets is regularly enhanced to create a positive and memorable guest experience. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
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38 Industry Overview An Overview of Singapore Tourism Market Singapore s economy continued to perform well in 2013 despite the appreciation of the Singapore Dollar and concerns over the recovery of the global economy. International visitor arrivals to Singapore in 2013 grew 6.9% to 15.5 million from the previous year due to strong growth in both leisure and business travel. Although visitor arrivals to Singapore have shown sustained growth for four consecutive years since 2010, however, the pace of growth has moderated from double-digit year-on- year growth of 13.2% achieved in 2011, and the 10.1% registered in 2012. offerings. Australia, the fourth largest Review of Hotel Market source market to Singapore, showed a year-on-year growth of 10.6% which can In 2013, the number of gazetted and be partly attributable to the successful non-gazetted hotel rooms increased by marketing campaign launched by STB 3,340 to 54,962 (or a year-on-year 6.5% in 2012. increase in room count), according to Jones Lang Lasalle. New hotel openings Despite the healthy growth in the in 2013 in the city centre included the visitor arrivals, tourism receipts had, 367-room Parkroyal on Pickering, however, increased only marginally the 386-room Carlton City Hotel at by 1.6% year-on-year to S$23.5 billion Tanjong Pagar, the 220-room Holiday in 2013, due to modest spending Inn Express Orchard Road and the by business travelers as companies 305-room The Westin Singapore at Asia trimmed their corporate travel budgets. Square. Hotel openings outside the city centre included the 384-room Ramada Additions to Hotel Supply in Singapore (2012 to 2016) 70,000 Based on the latest statistics from the Singapore Tourism Board ( STB (1) ), approximately 77.4% of all arrivals were from Asia. Top three source markets were Indonesia, P R China and Malaysia, 60,000 50,000 1,903 3,340 2,572 3,004 532 with market shares of 19.3%, 16.1% and 7.7% respectively, as at year to date September 2013. Of the top 10 source markets, P R China and Hong Kong showed the strongest year-on-year 40,000 30,000 49,719 51,622 54,962 57,534 60,538 growth of 26.1% and 18.1% respectively, which was boosted by the increase in air routes and capacity. Japan also 20,000 New/Expected Supply registered a strong growth of 12.1% owing to diversion of travel from other 10,000 Completed New Supply markets and continued interest in Singapore due to its new and refreshed 0 2012 2013 Source: Jones Lang Lasalle 2014 2015 2016 Existing Supply (1) Source: STB, International Visitor Arrivals Statistics, 28 February 2014. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
39 Industry Overview Singapore at Balestier, the 308-room BIG Hotel at Bencoolen, the 251-room Park Avenue Changi and the 313-room Capri by Frasers in the Changi area. Based on Jones Lang Lasalle s research, approximately 6,108 rooms are expected to come on stream into the Singapore s hotel market between January 2014 and December 2016, representing a compound annual growth rate of 5.4% assuming all the proposed projects from 2014 to 2016 materialise. The hotel room inventory in Singapore is expected to reach 60,538 rooms by December 2016. Based on STB s latest statistics (2), Singapore market-wide average hotel occupancy and average daily rate ( ADR ) of gazetted hotels in Singapore showed marginal declines in 2013. Market-wide average occupancy was 86.0% in 2013, a marginal decline of 0.2% over 2012. ADR decreased by 1.4% year-on-year to S$258. Consequently, RevPAR decreased by 1.6% year-on-year to S$223 in 2013. Singapore economy. However, the performance may be softened due to the increase in hotel room supply, the uncertainty over the sustainability of recovery of the major economies, and the moderated economic growth in China and Asia. Hotel Investment Market Outlook Hotel transactions in 2013 recorded a remarkable year with several landmark hotels sold. This is in contrast to Major Hotel Transactions in Singapore (2013) 2012 where there were few hotel transactions due to limited hotels available in the market. In 2013, major hotel transactions included the Gallery Hotel Singapore, the Grand Park Orchard Hotel (and adjoining Knightsbridge Singapore), Park Hotel Clarke Quay, Park Regis Singapore, Rendezvous Hotel Singapore (and the Rendezvous Gallery), The Sentosa Resort & Spa, The Westin Singapore and the Mandarin Orchard (and adjoining Mandarin Gallery). S/N Transactions Transacted Price 1 Gallery Hotel S$232.5 million 2 Grand Park Orchard Hotel (and adjoining Knightsbridge Singapore) S$1.2 billion 3 Park Hotel Clarke Quay S$300.0 million 4 Park Regis (including adjoining office block) S$250.0 million Hotel Market Outlook 5 Rendezvous Hotel Singapore (and adjoining Rendezvous Gallery) S$285.0 million For 2014, the performance of the Singapore hotel market is expected to improve in light of the stronger events calendar during the year and the expected modest growth of the 6 The Sentosa Resort & Spa S$210.9 million 7 The Westin Singapore S$468.0 million 8 Mandarin Orchard (and adjoining Mandarin Gallery) S$1.7 billion (2) Source: STB, Hotel Statistics (Preliminary), 28 February 2014.
40 Industry Overview These major hotel transactions in 2013 reflected robust demand for hotel assets in Singapore, coupled with prices reaching new record levels and yields compressing considerably. Notwithstanding the record high transaction prices in 2013, investor sentiment for hotel investment opportunities in Singapore is expected to remain strong moving forward, given the country s open economy, transparent legal system and strong tourism fundamentals. However, investment volume may be restrainted by the availability of hotels for sale which may lead to even stronger pricing for assets that do come to the market. Review of Serviced Residence Market occupancy of 85%, an increase from 81% in 2012. The average daily rate rose by 3.3% to $279. There is a growing trend of shorter stays due to an increase in the number of companies sending their staff on short-term corporate assignments attributed to tighter corporate travel budgets. Nonetheless, the companies are increasingly acknowledging that serviced residences are a more cost effective and flexible accommodation option for their staff on short-term overseas assignments (4). The leisure travelers are also increasingly considering serviced residences as an alternative accommodation option as they have become more cognizant of the cost savings and convenience offered by the serviced residences. performance of the serviced residences may be moderated by the increasing competition from the large stock of new residential apartments entering the market, with a number of these being made available for leases. Serviced Residence Investment Market Outlook The investment market in Singapore for serviced residences has not been very active as developers have tended to build residential projects for sale rather than to hold them as investment properties in the form of serviced residences. There are 52 serviced residences with a collective supply of 5,835 units in Singapore as at end 2013 (3). Of the existing inventory, the majority (or 79%) of the serviced residence units are located in the city centre / fringe areas. During the year, there was an addition of 180 units to the Singapore serviced residence market with the opening of the Pan Pacific Suites Beach Road, a serviced residence with hotel license. The demand for serviced residences was strong in 2013, with an average Serviced Residence Market Outlook For 2014, the performance of the serviced residences market in Singapore is expected to be stable in tandem with expectations of a modest growth of the Singapore economy and the improved sentiments over the recovery of the global economy. However, apart from the concerns over the sustainability of the recovery of the major economies, the (3) The Business Times, Serviced apartments demand on the rise in Singapore, 13 March 2014. (4) Colliers International, Welcome to my Home - Away - From - Home, September 2013. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
41 Performance Review Overview Portfolio and Value Revenue by Market Segment Being focused on Singapore, Far East H-Trust is able to capitalize on Singapore s economic stability and its appeal as a business and leisure destination. Over 7,000 multinational companies operate out of Singapore, underscoring the country s status as an international business hub. In 2013, international visitor arrivals also remained strong, growing 6.7% y-o-y to 15.5 million. Investments in infrastructure and tourism projects are expected to provide further stimulus to the tourism industry and will continue to make Singapore a choice destination for both business and leisure travelers. Additionally, Singapore was ranked #6 in the World Health Organization s list of the world s best medical systems, which serves as a draw to Singapore as a rising destination for medical tourism. Such investments and recognition, coupled with Singapore s resilient economy, fortify Singapore s reputation as a destination for business, medical and leisure travel. Far East H-Trust s portfolio consists of 8 hotels and 4 serviced residences which are strategically located in prime tourist and cultural areas within Singapore, allowing the properties to cater to a wide range of visitors. These properties are located within key tourist and business areas of Singapore providing business opportunities for the hotels and serviced residences. 9 of these properties contain retail and/ or office spaces which contribute stable rental income to the Far East H-Trust portfolio. The retail component offers a variety of selections to enhance the guest experience at the doorstep of Far East H-Trust s properties. As at 31 December 2013, Far East H-Trust s properties were valued at S$2.47 billion, including Rendezvous Hotel Singapore and Rendezvous Gallery which was acquired in August 2013. 15.0% 16.0% 69.0% Hotels Serviced Residences Excluded Commercial Premises
42 Performance Review A Review of Hotel Performance While the average occupancy of Far East H-Trust s hotels stayed healthy at 86.4%, 1.6 pp above forecast (1), the hotels operated in a more competitive environment in 2013, causing the average daily rates to decline. This resulted in a Revenue per Available Room ( RevPAR ) of S$165, 9.2% below the forecast of S$182. The newly acquired Rendezvous Hotel Singapore helped to lift the hotel portfolio RevPAR by 1.2% in 4Q 2013. 8.9% 51.7% 48.3% 31.8% 6.9% 8.2% 9.4% Occupancy % 100.0 86.4 84.8 86.3 84.9 80.0 60.0 40.0 20.0 0.0 RevPAR $ 200 160 Actual Forecast All Hotels Actual 182.4 165.7 165.2 Forecast Excl RHS 183.3 17.4% 17.4% 120 Corporate Leisure/Independent SE Asia N Asia Europe S Asia Oceania N America Others Far East H-Trust seeks to maintain a balanced mix between corporate and leisure guests to ensure healthy room occupancies during the peak and off-peak travel seasons. In 2013, corporate bookings continued to form a stable base, contributing 48.3% of hotel revenue. Guests from Southeast Asia and North Asia continue to represent the largest demographic in Far East H-Trust s hotel portfolio. In 2013, revenue contribution from Europe, Oceania and North America increased y-o-y. India, China, and Australia were the largest tourism source markets for Far East H-Trust s hotel business in 2013 by country. While the revenue contribution from India grew 4.0% y-o-y in 2013, bookings slowed in 4Q 2013 on the back of the depreciating Rupee. Tourist arrivals from Indonesia, likewise, were impacted by the lower Rupiah. Ongoing efforts to expand sales distribution in other growth markets have been fruitful, resulting in 7.7% and 5.2% y-o-y increases in room revenue from Japan and the Philippines respectively. 80 40 0 Actual Forecast Actual Forecast All Hotels Excl RHS Revenue by Quarter % 100 80 52.2 52.1 49.8 52.3 60 40 20 0 47.8 47.9 50.2 47.7 1Q2013 2Q2013 3Q2013 4Q2013 Leisure Corporate (1) Forecast for 2013, as disclosed in IPO Prospectus. Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
43 Performance Review A Review of Serviced Residence Performance The serviced residences achieved Revenue per Available Unit ( RevPAU ) of S$226 in 2013, 0.8% above the forecast of S$225. The increase in RevPAU was due to room rates surpassing forecast by 1.8%, while occupancy dipped below forecast by 1.0 pp. Occupancy % 100.0 80.0 60.0 89.0 90.0 40.0 19.9% 80.1% 17.8% 26.8% 20.0 0.0 Actual Forecast 3.2% 5.3% 7.3% RevPAU $ 240 210 226.9 225.2 15.2% 24.4% 180 150 120 Corporate Services FMCG 90 Leisure/Independent Banking & Finance Logistics 60 Oil & Gas Others 30 Elect & Manufac. 0 Actual Forecast Corporate business contributed 80.1% of revenue in 2013, representing a 0.1 pp increase over 2012. The banking and finance as well as the services sectors continued to be the two largest business segments. Far East H-Trust s serviced residences also expanded sales distribution to other industries, gaining traction in the electronics and manufacturing sectors. Revenue by Quarter % 100 21.0 18.5 80 21.4 18.8 60 40 79.0 81.5 78.6 81.2 20 0 1Q2013 2Q2013 3Q2013 4Q2013 Leisure Corporate
44 Performance Review A Review of Excluded Commercial Premises Performance Far East H-Trust has a total of 277 commercial units of retail, office, and serviced office distributed over 9 of the 12 properties, with leases primarily ranging from 1 to 3 years. The average occupancy in 2013 for the retail and office components was 93% and 96% respectively. The acquisition of Rendezvous Hotel Singapore and Rendezvous Gallery on 1 August 2013 brought an additional 16 retail units to the portfolio. The revenue generated from the commercial spaces contributed 16% of the portfolio s 2013 Gross Revenue compared to 15% in 2012. High occupancies coupled with office leasing rates above forecast helped to achieve an increase of 6% or $1.1 million in revenue over the 2013 forecast. Top 10 Excluded Commercial Premises Tenants Tenant Percentage of Revenue 1 FEO Entities 14.7% Industry Real Estate/ Hospitality Services 2 UNOS Pte Ltd 5.5% Food & Beverage 3 Club Chinois Pte Ltd 4.4% Food & Beverage 4 Stuart Anderson s Black Angus (Asia) Pte Ltd 3.9% Food & Beverage 5 K Box (Marina Square) Pte Ltd 3.0% Entertainment 6 Sivasanta Group Pte Ltd 2.2% Food & Beverage/ Education 7 Maison Kayser (Singapore) Pte Ltd 2.1% Food & Beverage 8 Akanoya Pte Ltd 2.1% Food & Beverage 9 HenryBros Singapore Pte Ltd 2.1% Food & Beverage 10 VSC Overseas Pte Ltd 1.9% Food & Beverage Asset Enhancement Initiatives Lease Maturity Profile as at 31 December 2013 20% 36% 27% 17% Through asset enhancement strategies, Far East H-Trust is consistently working to add value to the portfolio. The renovation of 97 rooms at Orchard Parade Hotel and 213 rooms at Village Hotel Bugis were completed in March 2013 and May 2013 respectively. The enhancements have aided the properties in drawing more corporate guests, while increasing rates for the renovated rooms. Upon acquiring Rendezvous Hotel Singapore, immediate plans to reposition it into an art-inspired hotel were undertaken and have since been completed. The reception area, lobby bar, and club rooms were redesigned to reflect the artistic character of the surrounding area. Plans to upgrade 136 rooms at Village Hotel Albert Court and 41 studio units at Regency House are currently underway. In addition, the REIT Manager is planning a light refresh of 303 rooms at Village Hotel Changi. These planned projects are expected to increase the attractiveness of the product and sustain value for the portfolio. 0-1 1-2 2-3 3-4 No. of years to expiry Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
45 Performance Review Capital and Risk Management Far East H-Trust endeavours to maintain a strong balance sheet, employ an appropriate mix of debt and equity in financing acquisitions of properties, secure diversified funding sources by accessing both financial institutions and capital markets, and optimise its cost of debt financing. In order to reduce exposure to market volatility, utilisation of interest rate hedging strategies are implemented, where appropriate. On 1 August 2013, Far East H-Trust successfully completed the acquisition of Rendezvous Hotel Singapore and Rendezvous Gallery. The acquisition was partly financed by unsecured borrowing of S$ 132.2 million. The total unsecured borrowings as at 31 December 2013 was S$782.2 million with staggered debt maturities of 3, 5 and 7 years since the origination of the loans. In addition, Far East H-Trust has also put in place a revolving credit facility of S$75 million, which remains undrawn as at the balance sheet date. Far East H-Trust takes a proactive approach in monitoring its cash and liquid reserves to ensure adequate funding is available for distribution to Stapled Securityholders as well as to meet any short-term liabilities. Far East H-Trust s aggregate leverage stood at 30.9% of its Deposited Property as at 31 December 2013, well within the limit set by the Property Fund Appendix. The average debt to maturity was 3.3 years. Debt Maturity Profile (as at 31 December 2013) S$100.0m Within 1 year After 1 year but within 5 years After 5 years Far East H-Trust holds derivative financial instruments to hedge its interest rate risk exposure with the primary objective of limiting the extent to which the net interest expense could be affected by adverse interest rate movements. As at 31 December 2013, 62% of Far East H-Trust s debt portfolio, or all of Far East H-Trust s debt maturing beyond 2016, has its interest rates fixed, providing stability in a rising interest rate environment. The average cost of debt remains low at approximately 2.2%. Cognisant of the imminent rise in interest rates, Far East H-Trust will continue to adopt a prudent and proactive approach towards capital and risk management. Use of Proceeds from Equity Placement S$682.2m On 1 August 2013, Far East H-Trust raised gross proceeds of approximately S$137.9 million from the issuance of 148,304,059 new stapled securities at an issue price of S$0.9302 per Stapled Security to partially finance the acquisition of Rendezvous Hotel Singapore and Rendezvous Gallery. The proceeds of approximately S$137.9 million have been utilised as follows: (i) approximately S$132.1 million (which is equivalent to 95.8% of the gross proceeds) to partially fund the purchase consideration of the acquisition; (ii) approximately S$2.6 million (which is equivalent to 1.9% of the gross proceeds) to partially fund the acquisition fee payable to the REIT Manager; and (iii) approximately S$2.7 million (which is equivalent to 2.0% of the gross proceeds) to fund the estimated professional and other fees and expenses incurred by Far East H-REIT in connection with the acquisition (inclusive of debt financing related expenses). Such use is in accordance with the intended application and is materially in accordance with the allocated percentage of the gross proceeds as stated in the Acquisition Announcement dated 15 April 2013. The allocated percentage was stated as 2.3% in the Acquisition Announcement for Paragraph (ii) above. The difference in the allocated percentage of 0.3% is due to a savings of S$0.5 million in the fees and expenses incurred by Far East H-REIT in connection with the acquisition. The REIT Manager has used the cost savings for working capital purposes.
46 Performance Review Stapled Security Price Performance 2013 began on a positive note as markets continued to show gains following the Federal Reserve s announcement of its bond-buying programme in December 2012. The optimism was met with caution in May, however, when the Federal Reserve hinted of a potential slowdown in its asset purchase programme. A month later in June, markets promptly sold off when the Federal Reserve reiterated that it may begin tapering its bond purchases if the economy continued to improve. Interest-rate sensitive stocks, Stapled Security price such as REITs, led the decline. The uncertain macro-environment not only impacted the capital markets but also the hospitality sector, as companies held back on business travel spending. The operating environment was also challenging with the influx of a sizeable supply of new room inventory and a strong Singapore Dollar, which resulted in lower room rates and fewer bookings from the region. The confluence of factors gave rise to the underperformance of most hospitality counters in the second half of 2013. Markets were granted a slight reprieve only in September, in light of the Federal Reserve s surprise decision to hold its bond-buying programme steady and put off tapering. Far East H-Trust s stapled security price closed at S$0.84 on 31 December 2013. In August 2013, approximately 148.3 million new Stapled Securities were issued in relation to the acquisition of Rendezvous Hotel Singapore and Rendezvous Gallery, increasing the total number of Stapled Securities in issue to approximately 1.8 billion. Far East H-Trust s total volume traded was 564,863,000 Stapled Securities, or an average daily trading volume of 2,250,450 Stapled Securities. Closing price as at 31 December 2012 S$1.00 Low S$0.815 High S$1.22 Average S$0.98 Closing price as at 31 December 2013 S$0.84 Volume Total trading volume 564,863,000 Average daily trading volume 2,250,450 Net asset value (NAV) per Stapled Security NAV per Stapled Security as at 31 December 2012 S$0.97 NAV per Stapled Security as at 31 December 2013 S$0.98 Far East H-Trust Stapled Security Price ($) 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 Jan 13 Jul 13 Dec 13 Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
47 Investor Relations Engaging the Investing Community Far East H-Trust is committed to communicate with Stapled Securityholders, analysts and the investing community in a timely and comprehensive manner. Far East H-Trust s investor relations ( IR ) outreach mainly entails growing its investor base and creating awareness of Far East H-Trust as a new hospitality trust. Management of the REIT Manager proactively engages analysts and fund managers through a wide range of events including conferences, roadshows and quarterly results briefings or conference calls. 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. During the year, Management attended 18 events and 24 one-on-one meetings, introducing Far East H-Trust s growth story to analysts and fund managers locally and overseas (refer to table for details). In addition, Stapled Securityholders are given the opportunity to communicate their views at the annual general meeting ( AGM ) and extraordinary general meeting ( EGM ). All resolutions are moved by voting by poll and an announcement of the results showing the number of votes cast for and against each resolution and the respective percentages is made through SGXNET. Far East H-Trust convened its first AGM in April 2013. It also held its first EGM in May 2013, for the acquisition of Rendezvous Hotel Singapore and Rendezvous Gallery. Since the Trust s IPO in August 2012, the number of brokerage houses covering the stock has grown to 7. The IR outreach has also encouraged investors to take stakes in Far East H-Trust. As at 31 December 2013, about 1.7 billion units are held by Stapled Securityholders. Institutional investors make up 25% of the Stapled Securityholdings, while Far East Organization entities hold 53%, and retail investors account for the rest. In terms of geographic distribution, Far East H-Trust s investors are mainly from Singapore, holding 1.4 billion or 80% of the Stapled Securities. The next largest market is Europe (excluding UK), where investors hold 102 million Stapled Securities or 6% of the issued. Investors from Asia, North America and UK make up the remaining stapled securityholdings. Commitment to Investor Relations As a commitment to the highest standards of communication with investors, analysts, media and investing community, Far East H-Trust has formalised an IR policy to provide guidance to the REIT Manager with regard to dealing with the investing community. Details of the IR policy can be found on Far East H-Trust s website (www.fehtrust.com). Access to Information Pertinent or material information are released in a timely manner via the SGXNet, Far East H-Trust s website and other channels including news releases, annual reports and Stapled Securityholders meetings. Far East H-Trust s 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. Also available on the website is Far East H-Trust s stock quotes (with a delay of 10 minutes), stock fundamentals and investment calculator. In addition, the public can subscribe to email alerts to receive the latest announcements and SGXNet filings. Stapled Securityholders with queries relating to Far East Hospitality Trust may contact the IR team: Gregory Sim Head of Investor Relations Tel: +65 6833 6677 Email: gregorysim@fareast.com.sg Denise Wong Analyst & Investor Relations Executive Tel: +65 6833 6607 Email: denisewong@fareast.com.sg
48 Investor Relations IR Activities in 2013 Events attended Date DBS Pulse of Asia 8 January 2013 Credit Suisse ASEAN Conference 10 January 2013 First Reporting Results Media & Analyst Briefing 6 February 2013 FEHT Results Luncheon hosted by Goldman Sachs 6 February 2013 HSBC Non-Deal Roadshow to Hong Kong 18-20 February 2013 SGX-Goldman Sachs Global Market Day in Tokyo 1 March 2013 HSBC Non-Deal Roadshow to Europe 24 29 March 2013 1Q 2013 Results Conference Call with Analysts 8 May 2013 1Q 2013 Results Luncheon by Goldman Sachs 9 May 2013 Conference Call with Analysts on Acquisition of Rendezvous Hotel 15 May 2013 Roadshow (HK & S pore) on Acquisition of Rendezvous Hotel 20 23 May 2013 Non-Deal Roadshow (Boston) 4 June 2013 DBS Pulse of Asia (New York & San Francisco) 5 7 June 2013 2Q 2013 Results Briefing with Analysts 7 August 2013 2Q 2013 Results Luncheon by Goldman Sachs 12 August 2013 BNP Asia Pacific High Dividend Property Day (HK & S pore) 11 & 13 September 2013 UBS ASEAN Conference 17 September 2013 Morgan Stanley Twelfth Annual Asia Pacific Summit 13 November 2013 Making The Difference FAR EAST HOSPITALITY TRUST ANNUAL REPORT 2013
49 Community Involvement Far East H-Trust believes in sharing its success with the less fortunate and giving back to the community. During the year, employees of the REIT Manager participated in community involvement projects. They were involved in Love Bazaar, a charity event organised by Republic Polytechnic Social Enterprise. They helped social enterprises such as Bakery Hearts, Mouth and Foot Painting Artists Association, Simei Care Centre and Singapore Association of the Visually Handicapped raise funds by selling handmade cookies, handicrafts, paintings and balloon sculptures. Love Bazaar was also supported by Far East Organization, as part of its efforts to inspire and improve lives of the underprivileged. All proceeds from the event went towards the participating social enterprises. Employees of the REIT Manager also participated in Project HomeWorks, an initiative by Habitat for Humanity Singapore. The project seeks to improve the living conditions of the elderly, the The Love Bazaar team with friendly artist from the Mouth and Foot Painting Artists Association sick and the physically-challenged living in one-room flats across Singapore. They helped to clean the homes of the elderly living in one-room flats in Toa Payoh by discarding unwanted items, replacing worn-out furniture and improving the sanitation and safety of the homes. Far East H-Trust was also one of the corporate sponsors that supported The Bull Charge 2013, a charity run event organised by the Singapore Exchange Limited. A total of S$3.18 million was raised for charitable programmes such as building a toy building for children with special needs at Asian Women s Welfare Association and a second Eden Centre for Adults at Autism Association (Singapore). Apart from financial contribution, Chief Executive Officer of the REIT Manager, Mr Gerald Lee, also joined the other runners at the event. Selling greeting cards, children books and jigsaw puzzles painted by the members of the Mouth and Foot Painting Artists Association Lending a helping hand to clean the homes of the elderly living in Toa Payoh s one-room flats