FRASERS Hospitality Trust on Friday announced that its financial performance for the second quarter of FY20, which ends on March 31, is expected to be adversely impacted by the Covid-19 pandemic.
This comes as its portfolio, comprising 15 assets across Asia, Australia and Europe,"witnessed weaker operating performance" amid the virus outbreak. The implementation of tighter entry restrictions by various countries led to a fall in demand for travel and accommodation over the weeks, said FHT, a stapled group comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust
In addition, FHT has temporarily closed its food-and-beverage outlets in its hotels in Sydney and Melbourne, in response to the Australian authorities imposing stricter measures such as social distancing and halting of activities. FHT will also progressively close its properties in the United Kingdom temporarily, with the UK government having imposed similar precautionary measures.
While the full extent on its financial performance for Q2 of FY2020 cannot be determined at this point, FHT said that the fixed-rent component in the master lease structure over most of its portfolio will provide minimum rent and downside protection.
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Source: The Straits Times - 🏆 8. / 63 Read more »