Why Far East Hospitality Trust's second quarter results disappoint analyst

Gross revenue was 7.9% lower than forecast.

According to OCBC Investment Reseach, Far East Hospitality Trust (FEHT) has announced 2Q13 results which we judge to be below its expectations and the street’s. 

Here's more:

Gross revenue for was S$29.3m or 7.9% lower than the IPO prospectus forecast. In addition, RevPAR for the hotels was S$168, 11% lower than the forecast of S$189. The serviced residences, however, generally performed in line with expectations, with RevPAU of S$230, versus S$228 in the forecast.

As a result, we see net property income and income available for distribution coming at S$26.9m and S$23.2m, which are 6.8% and 4.1% below the IPO forecasts, respectively. 2Q13 distribution per stapled security was 1.43 S cents which we view to be below expectations.