CDL Hospitality Trusts - OCBC Investment 2021-02-01: Awaiting Mass Vaccination

CDL HOSPITALITY TRUSTS (SGX:J85) | SGinvestors.io CDL HOSPITALITY TRUSTS (SGX:J85)

CDL Hospitality Trusts - Awaiting Mass Vaccination

  • CDL Hospitality Trusts' 2H20/FY20 DPU fell 29.2%/45.1% y-o-y.
  • Distribution of S$20m capital gains.
  • Singapore, New Zealand and Australia performed better.



CDLHT's 2H20 results beat expectations on top-up of S$20m

  • CDL Hospitality Trusts (SGX:J85)'s 2H20 results beat expectations on S$20m of capital distributions. 2H20 revenue and net property income dropped 36.5% and 46.2% y-o-y to S$65.5m and S$39.6m respectively, weighed by lower contributions across CDL Hospitality Trusts’ portfolio.
  • CDL Hospitality Trusts distributed partial divestment gains of S$20m to smoothen out the impact of COVID-19 and divestments. As such, 2H20 DPU fell 29.2% y-o-y 3.44 cents.
  • On a full-year basis, CDL Hospitality Trusts' FY20 DPU decreased by 45.1% y-o-y to 4.95 cents or 147% of our estimates, beating our expectations.


Singapore and New Zealand performed better, supported by isolation business

  • RevPAR remained soft in 4Q but improved q-o-q, with the exception of hotels in UK, Germany and Italy which were impacted by new lockdowns imposed in 4Q20. Overall, Singapore and New Zealand performed better, aided by isolation business which could continue to support the occupancy through 1Q21.
  • For Singapore (excluding W Hotel), RevPAR was down 59.7%/54.4% y-o-y in 2H20/FY20. Including W Hotel, RevPAR would have fallen 53.5%/51.4% y-o-y in 2H20/FY20. With the exception of New Zealand and Australia (largely on fixed rent), CDL Hospitality Trusts’ overseas market performances were generally weaker, with RevPAR falling between 19.2-85.5% y-o-y.
  • In light of COVID-19, CDL Hospitality Trusts restructured its lease in Italy (one hotel) from 2020 to 2024 to lower its fixed rent component and is working to restructure its lease in Germany (one hotel) as well.

Healthy balance sheet






Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2021-02-01
SGX Stock Analyst Report HOLD MAINTAIN HOLD 1.40 UP 1.390



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