CDL HOSPITALITY TRUST | OUTPERFORM
TARGET PRICE: $1.64
APRIL 27 CLOSE: $1.53
CREDIT SUISSE, APRIL 27
CDL Hospitality Trust's Q1 17 distribution per unit of 2.42 Singapore cents was in line at 24-25 per cent of Credit Suisse and street's full-year estimates.
Revenue and net property income were up 3.9 per cent and 6.4 per cent year-on-year respectively, mainly due to significantly stronger (+90 per cent yoy) contribution from NZ, which benefited from strong revenue per available room growth and a change in lease structure.
While we do note that more supply will be entering the market in Q2 17, many of the hotels will be operated by global brands such as Novotel, Intercontinental and Sofitel, which should arguably be less prone to making substantial rate cuts compared to smaller hotel brands.
SUNTEC REIT | HOLD
TARGET PRICE: $1.80
APRIL 27 CLOSE: $1.765
UOB KAY HIAN, APRIL 27
Suntec Reit's results are in line with expectations. Q1 17 headline distribution per unit of 2.425 Singapore cents was up 2.3 per cent year-on-year. Excluding capital distributions, core DPU of 2.307 Singapore cents was up 4.2 per cent yoy.
Q1 17 topline grew 12.9 per cent yoy, while net property income saw growth of 14.6 per cent yoy, mainly attributable to rental contributions from 177 Pacific Highway.
Office rentals were flat quarter-on-quarter, while Suntec City Mall saw higher tenant sales and shopper traffic.
HO BEE LAND LIMITED | ACCUMULATE
TARGET PRICE: $2.64
APRIL 27 CLOSE: $2.39
PHILLIP SECURITIES RESEARCH (SINGAPORE), APRIL 26
Ho Bee Land's (HBL) residential projects in Shanghai, Zhuhai and Tangshan have maintained their positive sales momentum, despite the numerous cooling measures by the government.
To date, 68 per cent of Yanlord Western Garden, Shanghai, about 44 per cent of Yanlord Marina Peninsula, Zhuhai and 86 per cent of Yanlord HubinCheng, Tangshan (completed) have been sold.
We note the rising asking prices for HBL's projects in Shanghai and Zhuhai over the last few years since launch and opine that the Chinese government's stricter capital controls for foreign property investments could entice potential buyers to look inward and consider domestic property purchases, thereby boosting demand for domestic properties.
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