On the positive side, CDLHT will benefit from falling interest rates with slightly more than half its debt on floating terms, adds Natarajan. “While the REIT is trading at a good discount to net asset value (NAV), we see limited catalysts to bridge the NAV gap as overall returns remain sub-par.”
RHB Bank Singapore analyst Vijay Natarajan has again trimmed his target price on CDL Hospitality Trusts (CDLHT) to 88 cents from 93 cents previously, citing “market challenges” in the hospitality sector here and abroad.
“CDLHT has been impacted by the competitive Singapore hospitality landscape and muted demand outlook. Overseas market contribution has been a mixed bag and impacted by forex volatility,” writes Natarajan in a Sept 24 note, his first on the REIT since Jan 31 this year.
