FAR East Hospitality Trust (FEHT) will have an expanded mandate to invest in new geographical markets and asset classes, effective 30 days from Thursday (Feb 20).
The managers of the stapled security group – which comprises Far East Hospitality Real Estate Investment Trust and Far East Hospitality Business Trust – said they would broaden the investment strategies of their respective trusts.
With the flexibility to explore new markets and asset classes, they will widen their pool of investment targets, they said. This could “bring opportunities to optimise the yield and value” of FEHT’s portfolio.
They added that including global assets and adjacent lodging asset classes in the investment scope will diversify the trust’s portfolio and revenue streams. This will mitigate risks arising from market fluctuations and the economic cycles of a single region or sector, they said.
Lastly, the managers believe that the expanded mandate will grant FEHT access to a wider range of reputable hospitality operators, which is complementary to its existing portfolio and master lease agreements.
Still, the managers said that they will continue to maintain a “strong core in Singapore”, even as they broaden their focus to invest overseas.
Stapled securities of FEHT closed at S$0.565 on Thursday, down 0.9 per cent or S$0.005, before the news.
Copyright SPH Media. All rights reserved.
