CDL Hospitality Trusts - DBS Research 2023-07-31: Building Resilience Through Diversity & Earnings Stability

• CDL Hospitality Trusts (SGX:J85) reported 1H23 rise in gross revenue and net property income to S$119.2m (+20.9%) and S$62.9m (+23% y-o-y).

An encouraging start to 1H23.

• - Read this at SGinvestors.io -
• We note that distributable income increased by a similar 23.8% y-o-y to S$31.2m, translating to a DPU of 2.51 cents (after 10% retention), which was higher by ~23% y-o-y.
• - Read this at SGinvestors.io -

Financial metrics: stable gearing, lower fixed rate hedges.

• CDL Hospitality Trusts's gearing levels remained stable at 37.9%, with a headroom of close to S$715m (to 50% gearing) with minimal expiries in 2023 (~7.6% of overall debt). Interest costs inched higher to ~4.1% (vs 3.8% in Mar 2023).
• We note that fixed rate debts had dipped to ~45%, which is done on purpose given management’s view that hedging too high a level will be costly. Our expectations of strong EBITDA growth in FY23-24F should be able to compensate for the increase in interest rates, which should be nearing a near term peak.

Robust outlook in 2H23.

• Read more at SGinvestors.io.

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

Read also DBS's most recent report:
2025-05-05 CDL Hospitality Trusts - A Quarter On Concert Hangover.

Previous report by DBS:
2025-02-03 CDL Hospitality Trusts - Watch For Maiden Contributions From UK Acquisitions.

Price targets by other brokers at CDL Hospitality Trusts Target Prices.

Listing of research reports at CDL Hospitality Trusts Analyst Reports.

Relevant links:
CDL Hospitality Trusts Share Price History,
CDL Hospitality Trusts Announcements,
CDL Hospitality Trusts Dividend Payout Dates & Corporate Actions,
CDL Hospitality Trusts News