SG Hospitality Trusts - ARAHT vs ART vs CDLHT vs EHT vs FEHT vs FHT

After previous comparison for U.S. office focused and China Retail focused SREITs/Biztrust, this time, let us try to compare Hospitality stapled group. For mobile user, please view in landscape mode.

Name	ARA US Hospitality Trust (ARAHT)	Ascott Residence Trust (ART)	CDL Hospitality Trusts (CDLHT)	Eagle Hospitality Trust (EHT)	Far East Hospitality Trust (FEHT)	Frasers Hospitality Trust (FHT)
Basic & Key Statistics
Listed Date	9-May-2019	31-Mar-2006	19-Jul-2006	24-May-2019	27-Aug-2012	14-Jul-2014
Unit Price	USD 0.340	$0.915	$1.060	USD 0.137	$0.550	$0.445
Dividend Yield	8.38%	5.72%	6.01%	0.00%	5.49%	4.48%
Price / NAV	0.44	0.74	0.72	0.17	0.64	0.63
Market Cap	USD 0.18 Billion	SGD 2.84 Billion	SGD 1.29 Billion	USD 0.12 Billion	SGD 1.08 Billion	SGD 0.86 Billion
Related Parties Shareholding
REIT Sponsor	9.47%	33.70%	37.72%	0.00%	58.87%	25.02%
REIT Manager	0.07%	6.73%	7.09%	0.00%	4.81%	1.03%
Directors of REIT Manager	0.14%	0.03%	0.01%	1.18%	0.18%	36.75%
Lease Profile
Revenue per Available Unit, REVPAU	Not standardized in REVPAU presentation
Income in SGD/Major Currencies	100.0%	75.6%	100.0%	100.0%	100.0%	96.0%
Weighted Average Lease Expiry, WALE	4.5 years	7.5 years	5.15 years	19 years	10.72 years	13.55 years
Highest Lease Expiry in 5 Years	100.0%	18.2%	17.2%	0.0%	9.3%	19.6%
Number of Properties	41 units	88 units	19 units	18 units	13 units	15 units
Weighted Average Land Lease Expiry	95.6 years	77.42 years	76.7 years	92.94 years	62.96 years	81.85 years
Debt Profile
Gearing Ratio	42.5%	36.1%	37.1%	37.6%	39.2%	35.9%
Interest Cover Ratio	1.5 time	3.6 times	3.4 times	.2 time	2.7 times	3.2 times
Cost of Debt	3.5%	1.8%	1.9%	5.8%	2.5%	2.3%
Fixed Rate Debt Proportion	83.0%	80.0%	61.6%	93.0%	60.3%	71.9%
Unsecured Debt Proportion	26.8%	70.3%	90.2%	17.3%	100.0%	96.3%
Weighted Average Debt Maturity, WADE	3.6 years	3.1 years	2.4 years	3.2 years	2.8 years	3.88 years
Highest Debt Maturity in 5 Years	71.1%	31.0%	31.2%	38.7%	22.8%	30.0%
Diversification Profile
Top Sector Contribution	100.0%	100.0%	94.0%	100.0%	79.7%	99.6%
Top Geographical Contribution	18.9%	20.9%	49.2%	47.6%	100.0%	20.9%
Top Property Contribution	4.5%	8.1%	11.4%	15.4%	18.3%	20.9%
Top Tenant Contribution	100.0%	11.5%	17.7%	100.0%	18.3%	16.8%
Top 10 Tenants Contribution	100.0%	28.0%	94.0%	100.0%	76.5%	92.3%
Number of Countries with Properties	1 country	14 countries	8 countries	1 country	1 country	7 countries
Key Financial Metrics
Property Yield	2.9%	3.8%	4.1%	4.8%	3.5%	4.3%
Management Fees over Distribution	10.5%	20.6%	15.8%	N/A	18.6%	29.5%
Distribution on Capital	2.9%	2.4%	3.1%	N/A	2.5%	2.2%
Distribution Margin	12.9%	21.3%	46.4%	N/A	57.0%	28.0%
Distribution from Asset Disposal	0.0%	18.2%	7.0%	N/A	0.0%	0.0%
Growth Trend (5 Years or Since IPO for REITs less than 5 years)
DPU	Downtrend	Downtrend	Downtrend	N/A	Downtrend	Downtrend
NAV per Unit	Downtrend	Downtrend	Slight Downtrend	Downtrend	Downtrend	Downtrend
Interest Cover Ratio	Downtrend	Uptrend	Downtrend	Downtrend	Downtrend	Downtrend
Property Yield	Downtrend	Downtrend	Downtrend	Downtrend	Downtrend	Downtrend
Distribution Margin	Downtrend	Downtrend	Downtrend	N/A	Downtrend	Downtrend

* Above information is extracted from SREITs Dashboard.

** Growth Trend for DPU is not adjusted for any equity fundraising.

*** EHT is suspended and never made any distribution before. Thus N/A for distribution related items.

****OUE Commercial Trust is excluded as hospitality is not its major sector.

Without assigning weightage, just consider favorable points will get:

1) Basic & Key Statistics - ARAHT, ART & EHT

2) Related Parties Shareholding - CDLHT

3) Lease Profile - EHT 

4) Debt Profile - ART, FEHT & FHT

5) Diversification - ART

6) Key Financial Metrics - ARAHT & FEHT

7) Growth Trend - ART & CDLHT

8) Overall - ART, followed by ARAHT

Due to COVID, all hospitality trusts have been affected and most growth trend items are at a downtrend.

For relative valuation:

Name	ARA US Hospitality Trust (ARAHT)	Ascott Residence Trust (ART)	CDL Hospitality Trusts (CDLHT)	Eagle Hospitality Trust (EHT)	Far East Hospitality Trust (FEHT)	Frasers Hospitality Trust (FHT)
52 Weeks
High	USD 0.895	$1.380	$1.670	USD 0.685	$0.785	$0.740
Low	USD 0.280	$0.670	$0.640	USD 0.136	$0.350	$0.315
Current	USD 0.340	$0.915	$1.060	USD 0.137	$0.550	$0.445
Average Yield
High	10.71%	8.27%	9.71%	N/A	7.54%	9.19%
Low	0.00%	2.01%	2.57%	N/A	3.68%	0.98%
Average	5.96%	6.28%	6.38%	N/A	6.17%	6.74%
Current	8.38%	5.72%	6.01%	N/A	5.49%	4.48%
Average Price/NAV
High	1.00	1.08	1.15	0.79	0.83	0.99
Low	0.52	0.74	0.66	0.17	0.57	0.67
Average	0.88	0.91	0.96	0.57	0.72	0.92
Current	0.44	0.74	0.72	0.17	0.64	0.63

ARAHT price is more favorable in terms of relative valuation, EHT is excluded in consideration as it is suspended.

Above is just a quick comparison, you could refer more detail on the individual analysis below:

- ARA US Hospitality Trust Analysis @ 26 August 2020

- Ascott Residence Trust Analysis @ 22 August 2020

- CDL Hospitality Trusts Analysis @ 23 August 2020

- Far East Hospitality Trust Analysis @ 25 August 2020

- Frasers Hospitality Trust Analysis @ 27 August 2020

For more information, you could refer:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

REIT Investing Community - Facebook Group where members share and discuss REIT topic

*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee the accuracy, completeness, and reliability. It should not be taken as financial advice or statement of fact. I shall not be held liable for errors, omissions as well as loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.