Broker Name: CGS International
Date of Report: February 2, 2026
Excerpt from CGS International report.
Report Summary
- CDL Hospitality Trust (CDREIT) is expected to see a stronger FY26, underpinned by the return of room inventory after asset enhancement initiatives and positive trends in key markets like Singapore, Australia, and New Zealand.
- The anticipated acquisition of the 475-key Moxy Hotels in late 2026, which could be fully funded by debt, is viewed as a potential driver for further distribution per unit (DPU) accretion in FY27.
- FY25 DPU of 4.80 Scts exceeded expectations, with performance driven by robust 4Q25 results and lowered interest expenses due to a reduced cost of debt.
- Management projects continued cost savings, stable to positive performance in Japan and other overseas assets, and expects further ramp-up of UK assets in FY26.
- The target price has been raised to S\$0.90, with a reiterated Add rating based on favorable dividend yield and anticipated positive catalysts, including accretive acquisitions and prepayment of high-cost debt.
- Key risks include global travel disruptions, changing customer preferences, and lower-than-expected returns from completed asset enhancements.
- CDREIT has improved its ESG disclosures and aims for Net Zero operations by 2050, but currently lags peers in some environmental and CSR metrics.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
