Broker Name: DBS
Date of Report: Inferred to be after November 2025, referencing FY25 results and forward-looking statements to 2026.
Excerpt from DBS report.
Report Summary
- CDL Hospitality Trusts (CDLHT) reported a 9% year-on-year drop in distributable income to SGD60.9 million for FY25, mainly due to higher operating costs, renovation disruptions, and the absence of one-off tax rebates.
- While NPI declined in Singapore, New Zealand, and the Maldives due to asset enhancements and rebranding, this was offset by strong performance in Japan, Australia, and UK long-stay assets, with overall portfolio valuations rising 0.8% to SGD3.4 billion.
- Interest costs improved, gearing lowered to 37.7%, and capital management remains disciplined, with the completion of major refurbishments expected to boost FY26 earnings and the Moxy Singapore Clarke Quay acquisition closely watched for its attractive yield potential.
- Management is prioritizing funding for the Moxy acquisition via debt and perpetual securities, with selective divestments as a possible option; overall, DBS maintains a BUY rating with a target price of SGD1.00.
Above is an excerpt from a report by DBS. Clients of DBS can be the first to access the full report from the DBS website: https://www.dbs.com.sg
