Broker Name: CGS International
Date of Report: February 2, 2026
Excerpt from CGS International report.
Report Summary
- CDL Hospitality Trusts (CDREIT) is expected to see stronger dividend per unit (DPU) in FY26F due to the return of room inventory after asset enhancement initiatives and cost savings from lower debt expenses.
- The upcoming acquisition of Moxy Hotels, potentially fully funded by debt, is projected to be DPU-accretive in FY27F, subject to deal structure and ramp-up assumptions.
- CDREIT’s key markets (Singapore, Australia, New Zealand) rebounded in 4Q25, offsetting earlier declines; ongoing refurbishment and positive events pipeline should further boost performance in 2026.
- ESG efforts are improving, with CDREIT aiming for Net Zero operations by 2050 and having refinanced a significant portion of its loans as sustainability-linked facilities.
- The broker reiterates an “Add” rating with a higher DDM-based target price of S\$0.90, citing positive catalysts such as travel demand recovery, accretive acquisitions, and continued operational improvements, though global travel disruptions and AEI underperformance are noted risks.
- Financial projections indicate DPU yields between 6.1% and 6.4% over FY26F-FY28F, with asset leverage remaining under 50% and steady RevPAR recovery across major markets.
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
