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REITs investment & personal finance


Thursday, May 06, 2021

CDL Hospitality Trusts Review @ 6 May 2021

Basic Profile & Key Statistics

CDL Hospitality Trusts (CDLHT) is a stapled group that invests mainly in hospitality properties and currently owns 18 properties across 8 countries.

Performance Highlight

NPI increased by 1% YoY by decreased by 19.1% QoQ.
REVPAR decreased YoY for all countries besides New Zealand and Maldives, with Maldives increased the most.
REVPAR for Singapore and Japan are more or less stabilized. REVPAR for UK, Germany and Italy are dropping as new lockdowns imposed in 4Q 2020. Whereas for New Zealand and Maldives, REVPAR have improved QoQ.

Related Parties Shareholding

  • REIT sponsor's shareholding is high at 38.32%
  • REIT manager's shareholding is high at 7.72%
  • Directors of REIT manager's shareholding is low at 0.01%

Lease Profile

  • WALE is long at 5.76 years
  • Highest lease expiry within 5 years is moderate at 26% which falls in 2022
  • Weighted average land lease expiry is long at 80.6 years 

Debt Profile

  • Gearing ratio is moderate at 39.1%
  • Cost of debt is low at 1.9 %
  • Fixed rate debt % is low at 63.6%
  • Unsecured debt % is high at 89.2%
  • WADM is slightly short at 2.1 years
  • Highest debt maturity within 5 years is low at 27.9% which falls in 2022
  • Interest coverage ratio is low at 2.4 times

Diversification Profile

  • Top geographical contribution is slightly low at 50.8%
  • Top property contribution is low at 14%
  • Top 5 properties contribution is low at 50.6%
  • Top tenant contribution is high at 20.7% 
  • Top 10 tenants contribution is high at 93.4% 
  • Top 3 countries contribution is from Singapore, New Zealand and Germany which contribute more than 75% of GRI

Key Financial Metrics

  • Property yield is low at 2.5% 
  • Management fees over distribution is high at 17.7% in which unitholders receive S$ 5.65 for every dollar paid 
  • Distribution on capital is low at 2.2%
  • Distribution margin is low at 34.4%
  • 33.1% of latest 4 quarters DPU is from distribution from asset disposal

Trends

  • Downtrend - DPU, NAV per Unit, Interest Coverage Ratio, Property Yield, Distribution on Capital, Distribution Margin

Relative Valuation

  • Dividend Yield - Latest 4 quarters DPU @ 4.95 cents / average yield @ 6.14% = S$ 0.805. 
  • Price/NAV - NAV @ S$ 1.32 x average P/NAV @ 0.96 = S$ 1.27


Author's Opinion

 Favorable Less Favorable
High REIT sponsor's shareholdingLow directors of REIT manager's shareholding
High REIT manager's shareholdingLow Fixed Rate Debt %
Long WALELow Interest Coverage Ratio
Long Weighted Average Land Lease ExpiryHigh Top Tenant & Top 10 Tenants Contributions
Low Cost of DebtLow Property Yield
High Unsecured Debt %Non-Competitive Management Fees
Well Spread Debt MaturityLow Distribution on Capital
Low Top Property & Top 5 Properties ContributionsLow Distribution Margin
 High Distribution from Asset Disposal
 DPU Downtrend
 NAV per Unit Downtrend
 Interest Coverage Ratio Downtrend
 Property Yield Downtrend
 Distribution on Capital Downtrend
 Distribution Margin Downtrend

CDLHT performance has stabilized but continues to be impacted by the COVID-19 situation. However, Maldives performance has improved by a lot in the latest quarter after the opening of borders. Moving forward, hopefully with the travel bubble arrangements, Singapore and New Zealand performance could be improved.


For more information, you could refer to:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

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*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and 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.

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