While CDLHT’s financial metrics were stable q-o-q, Guha sees further room for growth from visitor arrivals catching up to pre-pandemic levels, but softer interest rates are key to share price performance.
CDL Hospitality Trusts (CDLHT) is awaiting rate cuts, says Maybank Research analyst Krishna Guha, as high interest costs weighed on the REIT’s mid-single-digit topline growth in 1HFY2024 ended June 30.
CDLHT’s 1HFY2024 revenue per available room (RevPAR) grew through the year for nearly all of its eight markets. RevPAR in CDLHT’s one New Zealand property fell 1.2% y-o-y. CDLHT’s home market, Singapore, was also sequentially weaker due to high base effect and supply, notes Guha in an Aug 1 note.
