Singapore REITs - CGS-CIMB Research 2020-07-20: No Leisure Travel This Year?

Singapore REITs - CGS-CIMB Research | SGinvestors.io CDL HOSPITALITY TRUSTS (SGX:J85) FAR EAST HOSPITALITY TRUST (SGX:Q5T) ASCOTT RESIDENCE TRUST (SGX:HMN)

Singapore REITs - No Leisure Travel This Year?




Singapore’s border may remain closed until year-end

  • Singaporeans are unlikely to be able to travel for leisure this year. This could indicate that Singapore may not open its borders fully to foreign leisure travellers in the near term. This came after National Development Minister Lawrence Wong said Singapore’s travel advisory position is unlikely to change in the near term as Covid-19 remains widespread around the world. However, negotiations with countries on reciprocal green arrangements will proceed to facilitate essential business travel.


Cutting industry RevPAR forecasts

  • We see the above as a likely scenario given the resurgence of cases in many countries recently. Hence, we lower our FY20F y-o-y industry RevPAR growth forecast from 60-70% to 40-50%. Our previous forecasts assumed an average of 80% recovery in tourist arrivals in 2H20F, but we now assume a recovery of 30% of last year’s arrivals.
  • Business travellers only accounted for an average of 15% of Singapore’s total visitor arrivals over the past five years.


Ascott Residence Trust and CDL Hospitality Trusts issue profit warnings



Reiterate ADD on Ascott Residence Trust, CDL Hospitality Trusts and Far East Hospitality Trust






EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2020-07-20
SGX Stock Analyst Report ADD MAINTAIN ADD 1.200 DOWN 1.31
ADD MAINTAIN ADD 0.590 SAME 0.590
ADD MAINTAIN ADD 1.060 DOWN 1.21



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