CDL Hospitality Trust (CDREITSP) BUY
Analysts: Vikrant Pandey/ Derek Chang : (65) 6590 6623 / 6590 6614
| Company | Share price(S$) | Recommendation | Our Target Price(S$) | Within Expectation (Y/N) | DPU (S cents) | DPU yoy | Highlights of Results |
| CDL Hosp | 1.265 | BUY | 1.64 | Y | 4Q15: 3.01 | -3.8% | See attached comments |
| 4Q15 | yoy (%) | FY15 | yoy (%) | |
| Gross revenue (S$m) | 50.1 | 11.1 | 172.4 | 3.4 |
| Net property income (S$m) | 37.8 | (2.2) | 137.0 | (2.5) |
| Net income (S$m) | 22.0 | (28.4) | 89.6 | (15.7) |
| Distributable Income (S$m) | 29.8 | (3.0) | 99.2 | (7.8) |
| DPU (S cents) | 3.01 | (3.8) | 10.06 | (8.4) |
·Reported 4Q15 DPU of 3.01 S cents decreased 3.8% yoy. Excluding distribution from capital gains of 0.11 S cents from the Japan Hotels, 4Q15 core DPU of 2.9 S cents declined 7.3% yoy. On a same store basis, gross revenue declined 8.1%, mainly attributable to the Singapore Hotels and Maldives Resorts.Core DPU came in within expectations at 102.3% of our estimates.
·Singapore operating performance. Singapore Hotels saw RevPAR decline 7% in the quarter, as both average occupancy and average daily rate declined 3.5 pts and 2.9% respectively to reach 86.5% and $199. 11M15 saw total visitor arrivals to Singapore grow 0.4% yoy to reach 13.8m.
·Gearing improved 0.1 ppt qoq to reach 36.4% in the quarter. Borrowing costs also improved, coming in at 2.5% (3Q15: 2.6% ).
·Valuation. We have a BUY recommendation with a target price of S$1.64/share, based on DDM (required return: 7.7% and terminal growth of 1.6%). We'll give further updates post the analyst briefing.
Singapore Hotel Performance
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