CDL Hospitality Trusts - DBS Research 2023-01-31: A Bountiful Harvest

• CDL Hospitality Trusts (SGX:J85) reported 2H22 topline gross revenue of S$130.7 (+42.9%) and net property income of S$72.8 (+48.1%). This was led by broad-based growth across all markets spurred by leisure demand and the return of corporate groups, with organic contribution concentrated within the Singapore and UK portfolios.
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• Correspondingly, CDL Hospitality Trusts's total income to be distributed (post capital distribution of S$6.4m, partially netted by the retention of income of S$7.0) was S$69.713 or a full year dividend of 5.63 cents per share, exceeding our full year dividend estimate at 5.41 cents.

Stronger flow through to the bottom line; Broad based recovery across all geographical markets

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• 4Q22 NPI for the quarter at S$41.1m continued to see sequential improvement, in comparison to 2Q22 / 3Q22 NPI at S$26.8m / S$31.6m respectively.
• Demand continues to be broad based, with leisure fronting the recovery. The return of MICE events has seen the return of corporate groups more prominently in selected markets, including Singapore, Germany and Italy.
• On a full year basis, NPI performance has closed to or more than doubled in 4 key markets, including Singapore (+96% y-o-y), Japan (+60% y-o-y, from a low base), UK (+75% y-o-y), and Italy (+113% y-o-y).

Balance sheet – remained stable

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.