Investment Mandate and Growth Strategy
The Managers’ principal objectives are to deliver regular and stable distributions to the Stapled Securityholders and to achieve long-term growth in Distributions Per Stapled Security and in the 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 pro-active measures to enhance the Properties and to improve their operational performance, so as to optimise the cash flow and value of the properties. Through such active management, the REIT Manager seeks to enhance the efficiency of the Properties to improve occupancy rates, ADR and RevPAR, as well as to create a better lodging experience for its clientele.
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.