ARA US Hospitality Trust - DBS Research 2023-08-10: Resilience In Operational Performance

• ARA US Hospitality Trust (SGX:XZL)'s 1H23 revenue grew 5.9% y-o-y to US$86.0m from US$81.3m in 1H22. 1H23 gross operating profit (GOP) and net property income (NPI) of US$30.7m and US$22.0m grew 11.3% and 4.3% y-o-y respectively but came in below our estimates.
  • - Read this at SGinvestors.io -
  • NPI margin declined slightly to 25.6% in 1H23 from 26.0% in 1H22.
• 1H23 distributable income improved 6.8% y-o-y to US$8.7m from US$8.1m in 1H22. ARA US Hospitality Trust's 1H23 DPU lifted to US$0.01501 compared to US$0.01427 in 1H22 but fell short of our estimates. See ARA US Hospitality Trust's dividend date.
• 1H23 RevPAR came in at US$95 (1H22: US$80), while occupancy was at 68.9% (1H22: 62.7%) and ADR was US$137 (1H22: US$127).
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• Refinanced loans ahead of maturity – assuming completion in 3Q23, weighted average debt maturity extended to ~3 years.

Our thoughts on ARA US Hospitality Trust

Sustained improvements, with 2Q23 RevPAR exceeding pre-COVID levels.

• Read more at SGinvestors.io.

Tabitha FOO DBS Group Research | Derek TAN DBS Research | Geraldine WONG DBS Research | https://www.dbs.com/insightsdirect/ 2023-08-10 SGinvestors.io

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