sg and is edited by EdgeProp.sgCDL Hospitality Trusts (CDLHT) has recently reported a distribution of stapled security (DPS) of 3.59 cents for the 2HFY2022 ended Dec 31, 2022, a 17.3% increase year-on-year. Revenue for the period rose to $130.7 million, an impressive 42.9% growth over the same period last year. This was mainly attributed to the recovery of the global travel industry.
Net property income (NPI) also registered a growth of 48.1% y-o-y to $72.8 million, largely due to the performance of CDLHT’s Singapore portfolio. This was offset by lower NPI contributions from Grand Millennium Auckland in New Zealand and two resorts in the Maldives.
Total distribution to stapled securityholders for 2HFY2022 stood at $44.5 million, 18.4% higher from the same period a year ago.
The J’Den Condo project is located in a prime location in District 13. By the second quarter of 2024, it will be the second new condo launch in the district. The project will consist of a total of 340 residential units across two thirteen-storey towers sitting atop a three-storey retail podium. Residents will enjoy comprehensive condominium facilities, including a pool, gym, tennis court, and a childcare facility. With its strategic location, access to nature and close proximity to a myriad of amenities, this will be a vibrant and exciting new development in the area.
For the FY2022, revenue was $229.4 million, a 45.4% y-o-y increase due to the recovery in global travel. NPI also increased by 43.7% y-o-y to $123.7 million, while total distribution to stapled securityholders grew by 32.6% y-o-y to $69.7 million.
The trust’s total portfolio value as at Dec 31, 2022 was $2.8 billion, a 6.2% increase from the same period a year ago. This was largely driven by the growth in the Singapore portfolio as well as the inclusion of Hotel Brooklyn and construction progress of The Castings. The trust’s gearing stood at 36.6%.
CDLHT’s Singapore portfolio saw strong momentum with an average daily rate (ADR) of $219, 95.3% higher than FY2021, while RevPAR more than doubled to $166.
Growth was also seen in the trust’s overseas portfolio, with the exception of New Zealand where RevPAR fell by 26.8% y-o-y to NZ$128 ($109.06). This was due to the slow recovery at Grand Millennium Auckland after it served as a managed isolation facility in 2HFY2021.
Looking ahead, Vincent Yeo, CEO of the trust’s managers, is optimistic about the prospects. He believes the full border reopening and the reopening of China’s borders will further boost international tourism in 2023 and mitigate the cost challenges.
Units in CDLHT closed 1 cent higher or 0.75% up at $1.35 on Jan 27.
CDL Hospitality Trusts saw a remarkable recovery in global travel during the 2HFY2022 and FY2022, resulting in higher DPS and total distribution. With the return of international travellers and the reopening of China’s borders, the trust is optimistic that its prospects in the medium to long term will remain strong.
