Three Things To Like About Far East Hospitality Trust

With eight hotel and four serviced residences in Singapore, Far East Hospitality Trust (SGX: Q5T) would give investors, who are not looking for geographic diversification, a good reason to be cheerful.

That is the first thing to like about FEHT – its geographic concentration. Not everyone wants geographic diversification, especially if they might be uncomfortable with currency risk.

The trust, which is made up of a Real Estate Investment Trust and a Business Trust, provides hospitality primarily in the popular locations in Singapore. They include Orchard and Bugis. That is the second thing to like about FEHT, namely exposure to some of the most sought after locations in Singapore.

The third thing to like about FEHT is its dividend yield. Currently priced at S$0.78, shares in the trust are yielding 6.6%.

By comparison, Ascott Residence Trust (SGX: A68U) is yielding slightly less at 6.6%, while the average yield for the Singapore market is only about 3%. That said, peers OUE Hospitality Trust (SGX: SK7) and CDL Hospitality Trust (SGX: J85) are yielding more. Their yields are 7.3% and 6.8% respectively.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.