CDL Hospitality Trusts (J85) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: 5.88%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 75.0
• Beta (1Y): 0.95
• Revenue Growth: -2.96%
• EPS Growth: -101.38%
• Country: SG
• Employees: 4,319
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): >-0.01
• Shares Outstanding: 1,268,549,100
• 10 Day Avg. Volume: 1,128,650
• 30 Day Avg. Volume: 1,364,321
• PEG Ratio: -0.85
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 4.14
• P/FCF Ratio: -22.60
• Enterprise Value/Market Cap: 2.37
• Enterprise Value/Revenue: 9.49
• Enterprise Value/Gross Profit: 15.15
• Enterprise Value/Ebitda: 23.27
• 1Y Price Target: $1.00
• Price Target Upside: 21.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: S$1.00 ▲(21.95% Upside)

CDL Hospitality Trusts has a moderate overall stock score of 52. The most significant factor is the challenging financial performance, with declining revenues and profitability pressures. Technical analysis provides a neutral outlook, with some potential for stability. Valuation is mixed, with a negative P/E ratio but a high dividend yield. The absence of earnings call data and notable corporate events means these factors did not influence the score.

Positive Factors

Operational Efficiency

Strong EBIT and EBITDA margins indicate operational efficiency, suggesting the company can manage costs effectively, which is crucial for long-term profitability, especially in the hospitality sector where cost control is vital.

Asset Base Stability

A stable equity ratio reflects a solid asset base, providing a foundation for future growth and resilience against market fluctuations, which is essential for a REIT with diverse geographical exposure.

High Dividend Yield

A high dividend yield can attract income-focused investors, providing a steady income stream and potentially supporting the stock price, which is beneficial for long-term investor confidence.

Negative Factors

Declining Revenue

A significant revenue decline suggests challenges in maintaining market position and growth, which can impact long-term financial health and investor confidence, especially in a competitive hospitality industry.

Profitability Issues

Negative net profit margins highlight profitability issues, which can strain cash flow and limit reinvestment opportunities, affecting the company's ability to sustain operations and growth over time.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests difficulties in generating sufficient cash to cover expenses and invest in growth opportunities, which can hinder long-term strategic initiatives and financial stability.

CDL Hospitality Trusts Business Overview & Revenue Model

Company Description

CDL Hospitality Trusts ("CDLHT") is one of Asia's leading hospitality trusts with assets under management of about S$2.9 billion as at 31 December 2020. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust ("H-REIT"), a real estate investment trust, and CDL Hospitality Business Trust ("HBT"), a business trust. CDLHT was listed on the Singapore Exchange Securities Trading Limited on 19 July 2006. M&C REIT Management Limited is the manager of H-REIT, the first hotel real estate investment trust in Singapore, and M&C Business Trust Management Limited is the trustee-manager of HBT.

How the Company Makes Money

CDL Hospitality Trusts generates revenue primarily through the leasing of its properties to hotel operators, who pay rent based on long-term lease agreements. These agreements often include a variable component tied to the performance of the hotels, providing CDL Hospitality Trusts with a share of the earnings generated by these properties. Additionally, the trust may engage in asset enhancement initiatives to improve the value and profitability of its properties. Revenue is also derived from strategic acquisitions and partnerships that expand its portfolio and earnings base. The trust's performance is influenced by factors such as the overall health of the tourism and hospitality industry, macroeconomic conditions, and property market dynamics in the regions where it operates.

CDL Hospitality Trusts Financial Statement Overview

Summary

CDL Hospitality Trusts shows stable revenue and gross profit margins, but faces challenges in profitability and cash flow generation. The balance sheet is strong, with manageable leverage, yet inconsistent cash flows and profitability require attention to ensure sustainable growth.

Income Statement

The gross profit margin has been relatively stable, but there is a notable decline in net profit margin from previous years due to lower net income. Revenue growth is modest, indicating some recovery, but the absence of EBIT indicates operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating manageable leverage. The return on equity has been inconsistent, reflecting fluctuating profitability. Equity ratio remains healthy, providing a solid foundation.

Cash Flow

The decline in free cash flow and negative free cash flow growth rate are concerning. Operating cash flow remains positive but has not translated into net income consistently, indicating efficiency issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.99M	260.26M	257.56M	229.36M	157.72M	117.56M
Gross Profit	161.69M	135.22M	169.39M	123.72M	86.11M	69.33M
EBITDA	105.25M	98.16M	118.81M	145.46M	101.76M	-21.37M
Net Income	-1.77M	14.37M	123.21M	215.28M	67.93M	-188.01M
Balance Sheet
Total Assets	3.47B	3.45B	3.30B	3.10B	2.92B	2.85B
Cash, Cash Equivalents and Short-Term Investments	80.67M	78.29M	72.00M	96.93M	139.46M	131.10M
Total Debt	1.53B	1.48B	1.29B	1.21B	1.19B	1.12B
Total Liabilities	1.66B	1.61B	1.42B	1.31B	1.28B	1.23B
Stockholders Equity	1.80B	1.83B	1.88B	1.79B	1.64B	1.62B
Cash Flow
Free Cash Flow	118.90M	-47.74M	34.96M	60.53M	41.00M	-308.10M
Operating Cash Flow	118.90M	120.71M	123.77M	116.41M	62.53M	49.73M
Investing Cash Flow	-158.53M	-167.04M	-87.30M	-98.22M	-43.87M	81.95M
Financing Cash Flow	55.05M	54.19M	-61.52M	-51.93M	-7.16M	-145.94M

CDL Hospitality Trusts Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:J85, the sentiment is Neutral. The current price of 0.82 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.81, and above the 200-day MA of 0.79, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:J85.

CDL Hospitality Trusts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P40U	79 Outperform	$1.33B	12.08	6.62%	6.35%	0.70%	71.84%
JYEU	73 Outperform	S$1.58B	29.26	2.88%	5.66%	-6.64%	-12.15%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
Q5T	65 Neutral	S$1.23B	34.09	1.92%	6.43%	-3.65%	-69.86%
AU8U	63 Neutral	S$1.37B	1,316.67	0.04%	6.49%	-8.59%	-93.48%
ACV	62 Neutral	―	―	―	―	7.02%	-79.65%
J85	52 Neutral	$1.03B	75.00	-0.10%	5.88%	-2.96%	-101.38%

CDL Hospitality Trusts Corporate Events

CDL Hospitality Trusts Issues Stapled Securities for Management Fees

CDL Hospitality Trusts has announced the issuance of 2,278,753 stapled securities as payment for 80% of the base management fees to its managers for the period from April to June 2025. This issuance, priced at S$0.7782 per security, reflects the market price based on recent trading activity and increases the total number of stapled securities to over 1.26 billion, potentially impacting the company’s market positioning and stakeholder interests.

The most recent analyst rating on (SG:J85) stock is a Hold with a S$0.90 price target. To see the full list of analyst forecasts on CDL Hospitality Trusts stock, see the SG:J85 Stock Forecast page.

CDL Hospitality Trusts Convenes Annual General Meetings

CDL Hospitality Trusts recently held its Annual General Meetings for the holders of units in its real estate and business trusts. The meetings, attended by key directors and management, were convened to discuss the company’s operations and strategic direction. The appointment of Mr. Eric Chan as Chairman reflects the company’s commitment to strong governance. The outcomes of these meetings are crucial for stakeholders as they influence the company’s future strategies and industry positioning.

The most recent analyst rating on (SG:J85) stock is a Buy with a S$1.25 price target. To see the full list of analyst forecasts on CDL Hospitality Trusts stock, see the SG:J85 Stock Forecast page.