Frasers Hospitality Trust will likely be hurt by its disqualification for preferential tax in Australia, its second-largest market, DBS Group Research analysts say. Recent change in shareholding stemming from asset swap between TCC Assets and Thai Beverage in the stake of the REIT's sponsor Frasers Property has led to a loss of the REIT's preferential tax rate for income from Australia. Factoring in the impact of higher taxes in Australia, the REIT's FY 2025 distribution per unit is estimated to fall by 13%, they say in a research note. This implies a forward yield of 4.6%, which DBS sees as unattractive versus REIT's peers. DBS cuts the unit's rating to hold from buy and the target price to S$0.45 from S$0.62. (ronnie.harui@wsj.com)