SLIDE 1
Done by: Kevin Yee
SLIDE 2 Disclaimer
Please note that the information is provided for you by way of information only. All the information, report and analysis were and should be taken as having been prepared for the purpose of general circulation and that none were made with regard to any specific investment objectives, financial situation and particular needs of any particular person who may receive the information, report or analysis (including yourself). Any recommendation or advice that maybe expressed in or inferred from such information, reports or analysis therefore does not take into account and may not be suitable for your investment objectives, financial situation and particular needs. You understand that you buy and/or sell and/or take any position in/or
- n the market, in any of the stocks, shares, products or instruments etc.
based on your own decision(s). This is regardless of whether the information is analysed or not, regardless of the details or information related to price levels, support/resistance levels and any information based on technical or fundamental analysis. You understand and accept that nothing told or provided to you whether directly or indirectly is to be a basis for your decision(s) in relation to the market or your trades or transaction(s). Please see a registered trading representative
- r financial adviser for formal advise.
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Contents
Company Background 1 Market Review & Growth Drivers 2 Valuation Model 3 Debt Analysis 4 6 Summary Peer Comparison 5
SLIDE 4 Company Background
CDLHT is one of Asia’s leading hospitality trusts with a current asset size of $2.1b It owns 13 hotels in Singapore, Australia, New Zealand, Maldives as well as a shopping centre in Singapore (Orchard Hotel Shopping Arcade) Aside from the Maldivian assets, all other hotels are well located within key gateway cities CDLHT is a stapled group comprising of CDL H-REIT & CDL-HBT
Source: Company Report
SLIDE 5 H-REITS
Source: Company Report
Total portfolio size of SGD2b On Jan 2013, H-REITS successfully acquired a 113 villa Angsana Velavaru in the Maldives for USD 71m Strategy is to invest in a diversified portfolio of income- generating real estate with is primary used for hospitality
- r hospitality related purposes
Strategy to diversify by geography and asset profile
SLIDE 6 H-REITS
Source: Company Report
SLIDE 7 HBT
Source: Company Report
HBT is currently dormant HBT will become active if any of the following occurs:
- It is appointed by H-REIT
- Hotels acquired by H-REIT with no suitable master lessees will
be leased to HBT
- H-REIT undertakes certain projects which may not be suitable
for its strategy
SLIDE 8 Source: Company Report
Company Background
SLIDE 9 Company Background
Top Ten Tenants
Source: Company Report
SLIDE 10 Market Review
Source: Company Report
SLIDE 11 Market Review
Source: Company Report
SLIDE 12 Growth Driver
Source: Company Report
SLIDE 13 Growth Driver
Source: Company Report
SLIDE 14 Debt Analysis
Source: Company Report
SLIDE 15
Risk Factors
Foreign exchange risk Political risk A downturn in regional economies Lower-than-forecast room rates and occupancy rates The possibility that future acquisitions may provide lower-than-expected returns
SLIDE 16 Trading Data
Source: Reuters
52 week range $1.71 - $2.13 Market Capitalization $1.98 B Share Outstanding 970 M Average Daily Volume (3 mth) 2.19 M
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Valuation
Use Dividend Discount Model (DDM)
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Valuation – Financial Forecast
Fiscal Period (‘000) FY2011 FY2012 FY2013E FY2014E FY2015E Gross Revenue 141,107 149,535 173.461 187,337 202,324 Net property income 135,191 139,293 161,580 174,506 188,467 Income available for distribution 176,289 122,167 173,774 183,298 186,577 DPU (cents) 18.3 12.61 17.94 18.92 19.26 Dividend Yield % (at $2.08) 8.93 6.15 8.62 9.10 9.26
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Valuation Calculation
Long Term Growth Rate 3.0% Risk Free Rate 2.5% Beta 1.5 Equity Risk Premium 7.5% Cost of Equity 13.75% RFR + Beta * ERP (Cents) FY13F FY14F FY15F Terminal Dividend 0.179 0.189 0.192 1.845 FY15F DPS
NPV $1.69
(r-g)
(Fair Value)
= 0.192(1.03) 7.5% - 3.0%
SLIDE 20 Peer Comparison
Name Price NAV (M) Dividend Yield (%) Gearing (%) Asset Type CDL H trust 2.05 1.61 5.48 24.9 Hotel Ascendas HT 1.02 0.78 6.94 35.8 Hotel First REIT 1.28 0.83 5.16 27.1 Hospital + Hotel Far East H Trust 1.15 0.97 5.27 29.2 Hotel + Serviced Apts CapitaComm 1.64 1.62 4.99 30.1 Office + Retal + Hotel
Source: reitdata.com
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Future Direction
Maximize the operating performance of existing assets and explore asset enhancement opportunities Continue to source for acquisition opportunities in the next 12 months
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