CDL Hospitality Trusts (CDLHT) have reported a 17.3% y-o-y increase in their distribution of stapled security (DPS) for the 2HFY2022 ended Dec 31, 2022, at 3.59 cents. The trust’s overseas portfolio saw improved RevPAR with the exception of New Zealand on back of the robust recovery in global travel seen in 2022.

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Revenue for the 2HFY2022 and FY2022 climbed by 42.9% y-o-y and 45.4% y-o-y to $130.7 million and $229.4 million respectively, while net property income (NPI) increased by 48.1% y-o-y and 43.7% y-o-y to $72.8 million and $123.7 million respectively. The total distribution to stapled securityholders increased by 18.4% y-o-y and 32.6% y-o-y to $44.5 million and $69.7 million respectively.

Higher interest costs, mainly due to higher funding costs on its floating rate loans and on refinancing of fixed rate loans, as well as interest expenses incurred on additional loans taken to fund the acquisition of Hotel Brooklyn, impacted the trust’s distributions during both periods. However, the interest expense incurred on the UK build-to-rent (BTR) development project in Manchester was capitalised and did not affect the trust’s distributions.

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It was the recovery in global travel that led to the remarkable improvement in CDLHT’s performance. The return of corporate groups, leisure demand and citywide events enabled the trust to fully benefit from the recovery seen.

Singapore, being CDLHT’s core market, saw a 95.3% y-o-y jump in their average daily rate (ADR), while the portfolio’s RevPAR more than doubled to $166, from FY2021’s $82. New Zealand, however, saw RevPAR decline by 26.8% y-o-y to NZ$128 ($109.06).

The trust’s total portfolio value increased by 6.2% y-o-y to $2.8 billion. Their gearings also stayed healthy at 36.6% with a debt headroom of $790.4 million and $348.9 million of reserves as at Dec 31, 2022.

Looking forward, Vincent Yeo, CEO of the managers, expressed confidence in the trust’s medium to long term prospects. He also said that the reopening of China’s borders should support the further recovery of global tourism in 2023 and beyond.

Units in CDLHT closed 1 cent higher or 0.75% up at $1.35 on Jan 27.

CDL Hospitality Trusts (CDLHT) reported improved performance in the 2HFY2022 and FY2022. Their distribution of stapled security (DPS) for the 2HFY2022 ended Dec 31, 2022, was 3.59 cents, a 17.3% y-o-y increase, while revenue and net property income (NPI) rose by 42.9% y-o-y and 48.1% y-o-y to $130.7 million and $72.8 million respectively.

The recovery in global travel enabled the trust to fully benefit from the recovery seen. Singapore, the trust’s core market, saw a 95.3% y-o-y jump in their average daily rate (ADR), while the portfolio’s RevPAR more than doubled to $166, from FY2021’s $82.

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Higher interest costs impacted the trust’s distributions during both periods. However, the interest expense incurred on the UK build-to-rent (BTR) development project in Manchester was capitalised and did not affect the trust’s distributions.

The trust’s total portfolio value increased by 6.2% y-o-y to $2.8 billion, while their gearings also stayed healthy at 36.6% with a debt headroom of $790.4 million and $348.9 million of reserves as at Dec 31, 2022.

Looking ahead, Vincent Yeo, CEO of the managers, expressed confidence in the trust’s medium to long term prospects. He also said that the reopening of China’s borders should support the further recovery of global tourism in 2023 and beyond.

Units in CDLHT closed 1 cent higher or 0.75% up at $1.35 on Jan 27.