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$2.85 billion.

Rewards

PE ratio (8.6x) is below the SG market (10.1x)

Earnings are forecast to grow 3.41% per year

Earnings have grown 5.9% per year over the past 5 years

Pays a high and reliable dividend of 11.28%

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

6 star dividend payer and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

J85

-0.6%

SG REITs

3.4%

SG Market


1 Year Return

-52.4%

J85

-16.6%

SG REITs

-23.9%

SG Market

Return vs Industry: J85 underperformed the SG REITs industry which returned -20.9% over the past year.

Return vs Market: J85 underperformed the SG Market which returned -26.9% over the past year.


Shareholder returns

J85IndustryMarket
7 Day0%-0.6%3.4%
30 Day-39.9%-23.4%-15.0%
90 Day-50.9%-23.8%-22.3%
1 Year-49.6%-52.4%-11.6%-16.6%-20.7%-23.9%
3 Year-32.8%-45.4%11.5%-7.3%-15.6%-24.6%
5 Year-35.5%-54.5%18.8%-14.3%-15.7%-30.1%

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?

8.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: J85 (SGD0.8) is trading above our estimate of fair value (SGD0.66)

Significantly Below Fair Value: J85 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: J85 is good value based on its PE Ratio (8.6x) compared to the REITs industry average (9.6x).

PE vs Market: J85 is good value based on its PE Ratio (8.6x) compared to the SG market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: J85 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: J85 is good value based on its PB Ratio (0.5x) compared to the SG REITs industry average (0.7x).


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?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: J85's forecast earnings growth (3.4% per year) is above the savings rate (1.8%).

Earnings vs Market: J85's earnings (3.4% per year) are forecast to grow slower than the SG market (4.7% per year).

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

Revenue vs Market: J85's revenue (6.5% per year) is forecast to grow faster than the SG market (4% per year).

High Growth Revenue: J85's revenue (6.5% 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 (5.2%).


Next Steps

Past Performance

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

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: J85 has a large one-off gain of SGD49.1M impacting its December 31 2019 financial results.

Growing Profit Margin: J85's current net profit margins (57.3%) are higher than last year (54.7%).


Past Earnings Growth Analysis

Earnings Trend: J85's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: J85's earnings growth over the past year (2.2%) is below its 5-year average (5.9% per year).

Earnings vs Industry: J85 earnings growth over the past year (2.2%) underperformed the REITs industry 4.4%.


Return on Equity

High ROE: J85's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is CDL Hospitality Trusts's financial position?


Financial Position Analysis

Short Term Liabilities: J85's short term assets (SGD536.2M) exceed its short term liabilities (SGD131.3M).

Long Term Liabilities: J85's short term assets (SGD536.2M) do not cover its long term liabilities (SGD1.1B).


Debt to Equity History and Analysis

Debt Level: J85's debt to equity ratio (57.1%) is considered high.

Reducing Debt: J85's debt to equity ratio has increased from 48% to 57.1% over the past 5 years.

Debt Coverage: J85's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: J85's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

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

11.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: J85's dividend (11.28%) is higher than the bottom 25% of dividend payers in the SG market (3.19%).

High Dividend: J85's dividend (11.28%) is in the top 25% of dividend payers in the SG market (7.09%)


Stability and Growth of Payments

Stable Dividend: J85's dividends per share have been stable in the past 10 years.

Growing Dividend: J85's dividend payments have increased 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

How experienced are the management team and are they aligned to shareholders interests?

13.3yrs

Average management tenure


CEO

Vincent Yeo (50yo)

13.75s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Wee Yeo
CEO & Executive Director of M&C REIT Management Limited and M&C Business Trust Management Ltd13.75yrsno data0.011% SGD102.8k
Poh Cheo Gan
Chief Financial Officer of M&C REIT Management Ltd and M&C Business Trust Management Ltd13.25yrsno datano data
Mandy Koo
Head of Investments & Investor Relations of M&C REIT Mgmt Ltd and M&C Business Trust Mgmt Ltdno datano datano data
Zhipeng Xie
Compliance Manager - M&C REIT Management Limited and M&C Business Trust Management Limited1.83yrsno datano data
Peek Fong Ling
Company Secretary of M&C Reit Management Limited and M&C Business Trust Management Limitedno datano datano data
Lai Sun Soo
Company Secretary of M&C REIT Management Limited.no datano datano data

13.3yrs

Average Tenure

Experienced Management: J85's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wee Yeo
CEO & Executive Director of M&C REIT Management Limited and M&C Business Trust Management Ltd13.75yrsno data0.011% SGD102.8k
Say Foo
Lead Independent Director of M&C REIT Management Ltd and M&C Business Trust Management Ltd3yrsno datano data
Kenny Kim
Independent Non-Executive Director of M&C REIT Management Ltd and M&C Business Trust Management Ltd3.25yrsno datano data
Lim Siang Seah
Non-Executive Independent Director of M&C REIT Management Ltd and M&C Business Trust Management Ltd6.5yrsno datano data
Mei Wah Wang
Director of DBS Trustee Limitedno datano datano data
Soon Hee Chan
Chairman of the Board of M&C REIT Management Limited and M&C Business Trust Management Ltd1.83yrsno datano data
Sui Ling Cheah
Independent Non-Executive Director of M&C REIT Management Ltd and M&C Business Trust Management Ltd2.67yrsno datano data

3.1yrs

Average Tenure

56yo

Average Age

Experienced Board: J85's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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$904.704m
  • Shares outstanding: 1.21b
  • 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$2.85 billion. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment trust, and CDL Hospitality Business Trust (“HBT”), a business trust. CDLHT was listed on the Singapore Exchange Securities Trading Limited on 19 July 2006. M&C REIT Management Limited is the manager of H-REIT, the first hotel real estate investment trust in Singapore, and M&C Business Trust Management Limited is the trustee-manager of HBT. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:21
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.