CDLHT reports 2HFY2022 DPS of 3.59 cents, up by 17.3% y-o-y

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CDL Hospitality Trusts (CDLHT) reported a higher distribution of stapled security (DPS) of 3.59 cents for the 2HFY2022 ended Dec 31, 2022, an increase of 17.3% y-o-y. This is thanks to the recovery in global travel and its Singapore portfolio.

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Net property income (NPI) increased by 48.1% y-o-y to $72.8 million, leading to total distribution to stapled securityholders increasing by 18.4% y-o-y to $44.5 million.

Excluding the capital distribution of $12.5 million in the 2HFY2021 from the sale proceeds of past divestments, CDLHT’s total distribution and DPS would have improved by 77.3% and 75.1% y-o-y respectively.

For the FY2022, revenue increased by 45.4% y-o-y to $229.4 million thanks to the recovery in global travel. NPI increased by 43.7% y-o-y to $123.7 million, with total distribution to stapled securityholders increasing by 32.6% y-o-y to $69.7 million.

On a same-store basis, the trust’s Singapore portfolio saw a 95.3% y-o-y increase in its average daily rate (ADR) of $219, with RevPAR more than doubling to $166 for the FY2022. The overseas portfolio also saw improvements in RevPAR, with the exception of New Zealand, where RevPAR fell by 26.8% y-o-y to NZ$128 ($109.06).

As at Dec 31, 2022, CDLHT’s total portfolio value increased by 6.2% y-o-y to $2.8 billion. The trust’s gearing stood at 36.6%, with a debt headroom of $790.4 million and $348.9 million of reserves.

CDLHT’s CEO Vincent Yeo says the reopening of China’s borders could boost international tourism in 2023 and beyond, helping to mitigate the inflationary cost challenges and higher interest rate environment. He adds that the trust will assess opportunities to carry out asset enhancements to strengthen the competitiveness of its hotels.

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