Broker: CGS International
Date of Report: May 4, 2026

Excerpt from CGS International report

Report Summary

• Stock: CDL Hospitality Trust (CDREIT SP)
• Action: Maintain Add
• Target Price: S\$0.90 (Current price: S\$0.81; potential upside: 11.1%)
• Key Idea: While 1QFY26 showed strong Net Property Income (NPI) growth of 10.4% year-on-year, momentum is expected to slow for the rest of FY26, but the outlook remains positive with expected yield of 6.23%. Management projects low single-digit RevPAR growth in Singapore and interest savings from recent debt management actions.
• Highlights:
  • Revenue and DPS forecasts for FY26-28F were lowered by 4-10% due to a more muted outlook, but recovery is expected to be back-loaded.
  • CDREIT raised S\$250m in perpetual securities to retire higher-cost debt, reducing gearing to 35.3% and average cost of debt to 2.8%.
  • Asset enhancements and renovations are planned for key hotels in 2026.
  • Key risks include prolonged disruptions in global travel demand and moderation in Singapore demand, partly due to geopolitical and macroeconomic uncertainties.
  • ESG focus: CDREIT scored B- on LSEG ESG, is improving its disclosures and aims for Net Zero operations by 2050.
• Implications: Investors are advised to maintain positions, with upside potential upon resolution of uncertainties and continued operational improvements. The DDM-based target price remains at S\$0.90, positioning CDREIT as a steady yield play in the hospitality REIT sector.

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