Broker Name: CGS International
Date of Report: October 31, 2025
Excerpt from CGS International report.
Report Summary
- CDL Hospitality Trust (CDREIT) posted 9MFY25 Net Property Income (NPI) of S\$92.9m, in line with expectations at 75% of the FY25F forecast.
- The decline in Singapore portfolio performance moderated in 3Q25, and management expects a potential positive recovery in 4Q25F, especially with RevPAR growth during key events like F1 week.
- There are early signs of recovery for FY26F, including two hotels completing asset enhancement initiatives, full-year contributions from UK living assets, and a better operating environment in key markets.
- The report upgrades CDREIT to an “Add” rating with a higher DDM-based target price of S\$0.87, citing improved portfolio outlook and a projected FY26F DPU yield of 5.8%.
- Operational and financial forecasts for FY25-27F were raised, reflecting expected revenue and margin improvements, as well as a more favorable cost of debt outlook.
- Key risks include global trade tensions impacting corporate bookings, but re-rating catalysts could come from faster overseas recovery and interest rate cuts in the UK.
- CDREIT’s ESG profile is improving, with enhanced disclosures and sustainability initiatives, though it is still catching up with leading peers.
- Financially, CDREIT is seeing gradual growth in gross property revenue and distributable profit, with gearing expected to remain stable and dividend yields projected around 5.4%-6.7% through FY27F.
- CDREIT aims for Net Zero operations by 2050, with interim energy and water reduction targets by 2026F and 2035F.
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.cgsi.com.sg
