CDL Hospitality Trusts (CDLHT) reported 4Q13 results that were generally in line with ours and the street’s expectations. 4Q13 revenue rose by 2.8% YoY to S$39.4m and net property income climbed 2.5% YoY to S$36.4m. 4Q13 DPU is 2.92 S cents (up 0.7% YoY), bringing FY13 DPU to 10.97 S cents. RevPAR for CDLHT’s Singapore hotels in 4Q13 had declined 6.0% YoY. For the first 26 days of Jan 2014, RevPAR for CDLHT’s Singapore hotels declined by 0.3% YoY, inline with our expectations for fairly flat RevPAR change for the industry in 2014. While contributions from the Singapore and Australian hotels continued to be weak, Angsana Velavaru boosted the results, with a recognition of S$5.0m (inclusive of a 11 months variable rent of S$3.0m). We are placing our FV of S$1.84 and Buy rating UNDER REVIEW.

Source: OCBC Research - 29 Jan 2014