SGX:J85

Stock Analysis Report

CDL Hospitality Trusts

Executive Summary

CDL Hospitality Trusts (“CDLHT”) is one of Asia’s leading hospitality trusts with assets valued at S$2.8 billion.

Snowflake

Fundamentals

Average dividend payer with limited growth.


Similar Companies

Share Price & News

How has CDL Hospitality Trusts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: J85 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

J85

0.2%

SG REITs

-0.6%

SG Market


1 Year Return

7.4%

J85

16.9%

SG REITs

3.9%

SG Market

Return vs Industry: J85 underperformed the SG REITs industry which returned 16.9% over the past year.

Return vs Market: J85 exceeded the SG Market which returned 3.9% over the past year.


Shareholder returns

J85IndustryMarket
7 Day0%0.2%-0.6%
30 Day-1.8%-3.0%3.1%
90 Day0%0.5%3.0%
1 Year13.5%7.4%24.2%16.9%8.0%3.9%
3 Year50.4%21.2%48.2%22.2%19.9%7.1%
5 Year34.1%-5.6%55.8%12.1%11.6%-7.0%

Price Volatility Vs. Market

How volatile is CDL Hospitality Trusts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CDL Hospitality Trusts undervalued compared to its fair value and its price relative to the market?

13.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: J85 (SGD1.6) is trading below our estimate of fair value (SGD1.84)

Significantly Below Fair Value: J85 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: J85 is poor value based on its PE Ratio (21.7x) compared to the REITs industry average (14.1x).

PE vs Market: J85 is poor value based on its PE Ratio (21.7x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: J85 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: J85 is overvalued based on its PB Ratio (1.1x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is CDL Hospitality Trusts forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: J85's forecast earnings growth (11.2% per year) is above the savings rate (2.3%).

Earnings vs Market: J85's earnings (11.2% per year) are forecast to grow faster than the SG market (5.5% per year).

High Growth Earnings: J85's earnings are forecast to grow, but not significantly.

Revenue vs Market: J85's revenue (5.3% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: J85's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: J85's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has CDL Hospitality Trusts performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: J85 has large one-off items impacting its financial results.

Growing Profit Margin: J85's current net profit margins (45.6%) are lower than last year (68.5%).


Past Earnings Growth Analysis

Earnings Trend: J85's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: J85's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: J85 had negative earnings growth (-36.5%) over the past year, making it difficult to compare to the REITs industry average (4.6%).


Return on Equity

High ROE: J85's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CDL Hospitality Trusts's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: J85 has a high level of physical assets or inventory.

Debt Coverage by Assets: J85's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: J85's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if J85 has a sufficient allowance for bad loans.

Low Risk Liabilities: J85 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if J85 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: J85 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if J85 has an appropriate level of bad loans.


Next Steps

Dividend

What is CDL Hospitality Trusts's current dividend yield, its reliability and sustainability?

5.69%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%2.5%markettop25%5.5%industryaverage5.4%forecastin3Years5.8%

Current dividend yield vs market & industry

Notable Dividend: J85's dividend (5.69%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: J85's dividend (5.69%) is in the top 25% of dividend payers in the SG market (5.54%)


Stability and Growth of Payments

Stable Dividend: J85's dividend payments have been volatile in the past 10 years.

Growing Dividend: J85's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (91.1%), J85's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: J85's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

What is the CEO of CDL Hospitality Trusts's salary, the management and board of directors tenure and is there insider trading?

7.1yrs

Average management tenure


CEO

Vincent Yeo (50yo)

13.3yrs

Tenure

0

Mr. Wee Eng Yeo, also known as Vincent, has been the Chief Executive Officer of M&C Business Trust Management Limited and M&C Reit Management Limited since July 19, 2006. Mr. Yeo serves as the Chief Execut ...


Management Age and Tenure

7.1yrs

Average Tenure

Experienced Management: J85's management team is seasoned and experienced (7.1 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

56yo

Average Age

Experienced Board: J85's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Vincent Yeo (50yo)

    CEO & Executive Director of M&C REIT Management Limited and M&C Business Trust Management Ltd

    • Tenure: 13.3yrs
  • Enid Ling

    Company Secretary of M&C Reit Management Limited and M&C Business Trust Management Limited

    • Tenure: 0yrs
  • Annie Gan (55yo)

    Chief Financial Officer of M&C REIT Management Ltd and M&C Business Trust Management Ltd

    • Tenure: 12.8yrs
  • Mandy Koo

    Head of Investments & Investor Relations of M&C REIT Mgmt Ltd and M&C Business Trust Mgmt Ltd

    • Tenure: 0yrs
  • Lai Sun Soo

    Company Secretary of M&C REIT Management Limited.

    • Tenure: 0yrs
  • Elson Lock

    Senior Manager of Finance - M&C REIT Management Limited and M&C Business Trust Management Limited

    • Tenure: 1.4yrs
  • Zhipeng Xie

    Compliance Manager - M&C REIT Management Limited and M&C Business Trust Management Limited

    • Tenure: 1.4yrs

Board Members

  • Vincent Yeo (50yo)

    CEO & Executive Director of M&C REIT Management Limited and M&C Business Trust Management Ltd

    • Tenure: 13.3yrs
  • Bill Foo (60yo)

    Lead Independent Director of M&C REIT Management Ltd and M&C Business Trust Management Ltd

    • Tenure: 2.6yrs
  • Kenny Kim (52yo)

    Independent Non-Executive Director of M&C REIT Management Ltd and M&C Business Trust Management Ltd

    • Tenure: 2.8yrs
  • Ronald Seah (71yo)

    Non-Executive Independent Director of M&C REIT Management Ltd and M&C Business Trust Management Ltd

    • Tenure: 6.1yrs
  • Jean Wang

    Director of DBS Trustee Limited

    • Tenure: 0yrs
  • Eric Chan (66yo)

    Chairman of the Board of M&C REIT Management Limited and M&C Business Trust Management Ltd

    • Tenure: 1.4yrs
  • Sui Ling Cheah (48yo)

    Independent Non-Executive Director of M&C REIT Management Ltd and M&C Business Trust Management Ltd

    • Tenure: 2.3yrs

Company Information

CDL Hospitality Trusts's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CDL Hospitality Trusts
  • Ticker: J85
  • Exchange: SGX
  • Founded: 2006
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: S$1.945b
  • Shares outstanding: 1.22b
  • Website: https://www.cdlht.com

Number of Employees


Location

  • CDL Hospitality Trusts
  • 390 Havelock Road
  • No. 02-05 King's Centre
  • Singapore
  • 169662
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
J85SGX (Singapore Exchange)YesStapled SecuritiesSGSGDJul 2006
CDHS.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJul 2006

Biography

CDL Hospitality Trusts (“CDLHT”) is one of Asia’s leading hospitality trusts with assets valued at S$2.8 billion. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”) ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:45
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.