Hospitality REITs - Stabilising On A Q-o-q Basis
CDL HOSPITALITY TRUSTS (SGX:J85)
- Hospitality REITs’ Singapore RevPAR stable q-o-q, supported by contracts. Overseas RevPAR saw improvement q-o-q in 3QFY21.
- CDL Hospitality Trusts (SGX:J85)’s 9MFY21 NPI increased ~28% y-o-y to S$57.5m (77% of our forecast). CDL Hospitality Trusts saw strong y-o-y performance from New Zealand, Maldives and UK which offset the effect of divestments of Novotel Clarke Quay (Jul 2020) and Novotel Brisbane (Oct 2020).
- Far East Hospitality Trust (SGX:Q5T) delivered -3.4% y-o-y in NPI to S$54.5m (72% of our forecast). Far East Hospitality Trust saw weaker demand for its serviced residence which reduced variable income and commercial space.
- Ascott Residence Trust (SGX:HMN) declared advanced distribution of 0.545 cents for the period of 1 Jul 2021 to 19 Sep 2021, bringing 9MFY21 DPU to S$0.0259 (64% of our full year forecast).
- We think the REITs are likely to top-up income in 4QFY21.
- Reiterate ADD on Ascott Residence Trust, CDL Hospitality Trusts, Far East Hospitality Trust. Expect better performance in 4Q.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2021-10-29
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