CDL Hospitality Trust

Re: CDL Hospitality Trust

Postby winston » Tue Nov 03, 2009 8:31 am

CDL Hospitality Trust – Results (Lee Kok Joo)
Recommendation: BUY
Previous close: S$1.59
Fair value: S$1.80

• CDL Hospitality Trust (CDL HT) reported gross revenue for 3QFY09 of $22.9 million (-21.5% y-o-y, +13.1% q-o-q)), net property income (NPI) was $21.4 million (-21.5% y-o-y, +11.3% q-o-q).

Distributable income was $18.6 million (-23.7% y-o-y, +7.2 q-o-q). DPU for the quarter was 2.04 cents (-30.4% y-o-y,+7.9% q-o-q).

Source: Phillip Securities Research Pte Ltd
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Re: CDL Hospitality Trust

Postby millionairemind » Thu Jan 28, 2010 7:57 am

With the glut of rooms coming onstream due to the 2 IRs, not sure if they can still maintain this RevPAR at $159 this year.

Published January 28, 2010

CDLHT posts 88.9% average occupancy
But weaker room rates drag down RevPAR by 13.6% to $159 in Q4'09


By KALPANA RASHIWALA
CDL Hospitality Trusts (CDLHT), a favourite stockmarket proxy for the improving outlook for Singapore's tourism sector, achieved an average occupancy rate of 88.9 per cent for its five Singapore hotels in the fourth quarter last year, a better showing than the fourth quarters of the preceding two years.

Mr Yeo: 'We're seeing demand levels back to where they were prior to the economic crisis...'

'We're seeing demand levels back to where they were prior to the economic crisis, albeit room rates are lower,' said Vincent Yeo, CEO of the trust's manager.

'In November 2009, we did the highest occupancy rate ever bar one month (since the inception of our Reit in July 2006),' he added.

However, weaker room rates dragged down room revenue per available room (RevPAR) by 13.6 per cent to $159 in Q4 2009 from $184 in Q4 2008. RevPAR peaked at $222 in Q2 2008.

The trust posted income available for distribution to unitholders of about $21.7 million for Q4 2009, a 14 per cent improvement from the same year-ago period.

Despite a 7.1 per cent year-on-year (y-o-y) drop in gross revenue to $26.1 million in Q4 2009, CDLHT achieved a 14 per cent y-on-y rise in net property income to $24.7 million. This was due to lower property tax expenses (inclusive of a 40 per cent property tax rebate granted by the Singapore government last year) and lower other property expenses.

The latest Q4 distributable income reflects a distribution per unit (DPU) of 2.58 cents.

For full year ended Dec 31, 2009, CDLHT posted total distributable income of $75.8 million, a decline of 17.6 per cent from the preceding year. The trust is paying out a total of $71.7 million, reflecting a 94.6 per cent payout ratio. It is retaining the balance $4.1 million (which is tax-exempt income) to help fund future capital expenditure on its properties.

CDLHT had $5.7 million in cash and cash equivalents as at end-2009.

CDLHT, which pays distributions semi-annually, will be making a payout of 4.71 cents per unit for the second half of last year. The full-year 2009 payout works out to 8.57 cents, which translates to nearly 5.2 per cent yield based on the counter's $1.66 closing price yesterday.

The trust, which was listed on the Singapore Exchange in July 2006, owns five hotels in Singapore - Orchard, Grand Copthorne Waterfront, M, Copthorne King's and Novotel Clarke Quay - and Orchard Hotel Shopping Arcade. It also owns a hotel in New Zealand - the Rendezvous Hotel Auckland.

London-listed Millennium & Copthorne Hotels (M&C), as sponsor of CDLHT with a 39.5 per cent stake, has given a right of first refusal to sell its Singapore properties to the trust for a five-year period starting from CDLHT's listing date in July 2006. M&C will open a new hotel, Studio M, in the Robertson Quay area around April.

M&C's parent City Developments has a stake in the St Regis Singapore. Overseas, the trust's acquisition strategy is dependent on where the deals emerge and 'the markets where we're seeing the most deals flow are Australia and Japan', Mr Yeo said.

Singapore's pool of hotel rooms is expected to increase by about 5,800 rooms or 17 per cent this year. Most of the additional supply will come from the two integrated resorts (IRs).

Achieving even a 0.5-night increase in the average length of visitor stay in Singapore will help to offset a large part of the additional supply in 2010, Mr Yeo argues.

The demand-pull factors in Singapore are escalating to a new plane with the opening of the IRs. With a mix of gaming entertainment, conference facilities and the Universal Studios theme park, 'the IRs mark a significant step forward in Singapore's transformation into a world-class travel destination and a preferred mono-travel destination', the trust manager said.

Mr Yeo said that 'gaming is somewhat addictive so you could see very frequent visits' from visitors in neighbouring countries such as Indonesia and Malaysia.

The draw of the IRs should also help to convert some of the transit passengers at Changi Airport to visitor arrivals into Singapore.

'Less than 7.4 million of a total of 37.2 million passengers passing through Changi Airport in 2009 would have visited Singapore,' the trust manager noted.
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Re: CDL Hospitality Trust

Postby BlackCat » Tue Feb 16, 2010 4:53 pm

One of the few stocks with support still holding during the correction:

cdl100214.small.jpg


Very Brief look at fundamentals. I think it has a plausible growth story due to its low gearing:

- Yield is 5%, at a 95% payout ratio (@ stock price of $1.69).
- (Before the Aust acquisition) Gearing was low at only 283m (3 yr loan due Jul 2012). Properties are carried on balance sheet at 1.5bn, giving leverage of 19%. MAS regulations (Sect 9.2) allow 60% leverage, but most REITS aim for 40%. Thus they could theoratically double their borrowings (and yield).
- (For Aust Acquisition) Expected to be fully funded via debt through debt in A$ and SGD (expected 50/50). Post-acquisition, H-REIT’s debt-to-assets ratio assuming 100% debt financing will be approximately 30.0%. (When are these debts due?)
- Have not checked how cyclical this CDL Hospitality's income is. Read somewhere (the Egde) that their hotels still had to pay a minimum rent even if their occupancy was low. At this stage of the stockmarket cycle, I don't buy-and-hold.
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Re: CDL Hospitality Trust

Postby winston » Tue Feb 16, 2010 5:05 pm

TOL:-

People who buy REITs normally do so, for their yield and not for capial gains. In addition, they try to time their purchase to be a few weeks before dividends announcement.

So is a 5% yield exciting enough ? Or do you see yield going up ?
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Re: CDL Hospitality Trust

Postby BlackCat » Tue Feb 16, 2010 6:42 pm

The acquisition raised their gearing from 20 to 30% and is expected to raise their DPS by .87c (yield from 5 to 6%). So theoretically, another acquisition could raise the yield to 7% before hitting the optimal 40% gearing level.

Is 7% enough for me to buy and hold? No. I would also be worried about the industry cycle: current low vacancy rates have little downside and a lot of upside.

My thoughts are more along the lines of wanting to participate... if the bull market continues, then by definition, people have to be buying stocks... if this stock holds its uptrend, this may be a good entry point.

If I was to buy any SGX listed stock purely on fundamentals, I'd probably wait for another bear market or crisis (historically up to 6 years on SGX)...I have wondered if I should adopt this strategy.
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Re: CDL Hospitality Trust

Postby winston » Tue Feb 16, 2010 6:57 pm

BlackCat wrote: My thoughts are more along the lines of wanting to participate... if the bull market continues, then by definition, people have to be buying stocks... if this stock holds its uptrend, this may be a good entry point.


It depends on your time frame.

If it's a short term play, then you may need to be buying the leaders of the rally. Not too sure that this counter would be one of those leaders of the rally ..
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Re: CDL Hospitality Trust

Postby BlackCat » Tue Feb 16, 2010 8:15 pm

Thanks Winston,

I haven't found any leaders to the rally yet.. chartwise, this counter was probably the closest.

After staring at the charts for hours looking for relative strength, bullish reversals, divergences, accumulation... very slim pickings.

I may be looking for the wrong things... or maybe its just not yet time to buy.
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Re: CDL Hospitality Trust

Postby millionairemind » Fri Apr 30, 2010 7:13 pm

April 30, 2010, 5.52 pm (Singapore time)

CDLHT Q1 net property income up 20%


By EMILYN YAP

CDL Hospitality Trusts (CDLHT) on Friday posted a net property income of $24.7 million for the first quarter ended Mar 31 - up 20 per cent from a year ago.

Income available for distribution rose 18 per cent to $19.4 million over the same period.

Distribution per stapled security in Q1 was 2.32 cents, which is 18 per cent higher than the 1.97 cents in the same period last year.
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Singapore - Reits Quarterly Results Release

Postby sreitinvestor » Sun May 02, 2010 7:14 am

First quarter 2010 results for CDL H-Trust:

Key Points

* Gross revenue increased 18.1% to S$26.6 million
* Income available for distribution per Stapled Security rose 18.3% to 2.58 cents.
* Strong RevPAR growth of 15.8% to S$174 for Singapore Hotels.
* Continuation of robust growth in hospitality demand on the back of strong tourism drivers boosted by the phased opening of the Integrated Resorts.


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CDL HOSPITALITY TRUSTS ANNOUNCES PRIVATE PLACEMENT OF S$150

Postby sreitinvestor » Tue Jun 22, 2010 11:18 pm

CDL HOSPITALITY TRUSTS ANNOUNCES PRIVATE PLACEMENT OF S$150 MILLION

* Private placement of new stapled securities in CDLHT at an issue price of between S$1.71 and S$1.77 per new stapled security to raise a minimum gross proceeds of S$150.0 million.
* the Manager intends to use approximately S$116.3 million of the net proceeds from the private placement to repay the Singapore dollar portion of the one-year bridging facility that was used to finance the recent acquisition of Australian properties comprising Novotel Brisbane, Mercure Brisbane, Ibis Brisbane, Mercure Perth and Ibis Perth in 1Q 2010.
* The balance of the proceeds will be used to reduce debt levels arising from the partial utilisation of a S$80.0 million committed revolving credit facility from DBS Bank Limited, payment of transaction expenses in connection with the private placement of new stapled securities and general corporate or working capital purposes.
* the gearing level is expected to be reduced from 30.9% to 22.6% following the private placement.
* There will be an advanced distribution which is approximately 4.8 cents per unit. The actual quantum of the DPU will be announced on a later date after the management accounts of H-REIT for the relevant period have been finalised.
* Based on the minimum amount of New Stapled Securities to be issued pursuant to the Private Placement, the number of units in CDL H-Trust in issue will increase by 84,750,000, which is an increase of 10.1% of the total number of units in issue as at 22 June 2010.
* There will be an advance distribution for existing share holders of approximately 4.8 cents per unit. The actual amount will be announced on a later date after the management accounts of the relevant period have been finalised. The book closure date for the advance distribution is on 30 Jun 2010, and the payment of the advance distribution is on 27 Aug 2010.
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