Investment mandate and growth strategy

FHT aims to deliver long-term growth in distribution and net asset value to our Stapled Securityholders.

The Managers’ principal objectives are to deliver regular and stable distributions to the Stapled Securityholders and achieve long-term growth in distribution per Stapled Security and net asset value per Stapled Security, while maintaining an appropriate capital structure, through the following strategies:



Acquisition growth strategy

Source for and pursue asset acquisition opportunities which provide attractive cash flows and yields and which satisfy the REIT Manager’s investment mandate for FH-REIT to enhance the returns to Stapled Securityholders and improve potential opportunities for future income and capital growth.

Active asset management and enhancement strategy

Implement proactive initiatives to enhance the properties and improve their operational performance, so as to optimise their cash flow and value. Through such active management, the REIT Manager seeks to enhance the efficiency of the properties to improve occupancy rates, average daily rates and revenue per available room, as well as to create a better lodging experience for its guests.

Capital and risk management strategy

Maintain a strong balance sheet, employ an appropriate mix of debt and equity in financing acquisitions of properties, secure diversified funding sources to access both financial institutions and capital markets, optimise its cost of debt financing and utilise interest rate and foreign exchange hedging strategies, where appropriate, in order to minimise exposure to market volatility.

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