CDL Hospitality Trusts (J85) AI Stock Analysis

• Market Cap: S$1.07B
• Dividend Yield: 5.84%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• 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): -0.02
• Shares Outstanding: 1,273,011,200
• 10 Day Avg. Volume: 1,128,650
• 30 Day Avg. Volume: 1,364,321
• PEG Ratio: 0.12
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 3.96
• P/FCF Ratio: 26.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.00
• Price Target Upside: 16.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): S$280.64M

• Rating: 57 Neutral
• Price Target: S$0.90 ▲(4.07% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is held back primarily by financial fundamentals: 2025 net loss, higher leverage, and weaker cash flow momentum despite continued revenue recovery. Technicals are a relative positive with an established uptrend and supportive momentum. Valuation is mixed—an attractive dividend yield is offset by negative earnings reflected in the negative P/E.

Positive Factors

Stable Debt Management

A stable debt-to-equity ratio suggests that CDL Hospitality Trusts maintains a balanced approach to leveraging, which supports long-term financial stability and reduces risk associated with high leverage.

Rebranding Strategy

The rebranding under Marriott's Autograph Collection enhances market positioning by leveraging Marriott’s global standards, potentially increasing occupancy and revenue through improved brand recognition and customer experience.

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing strategies, which can sustain profitability and provide a buffer against revenue fluctuations.

Negative Factors

Declining Revenue

A significant decline in revenue growth impacts the company's ability to generate income, affecting its capacity to invest in growth opportunities and maintain competitive positioning.

Negative Net Income

Negative net income reflects operational inefficiencies and challenges in maintaining profitability, which can hinder the company's ability to reinvest in its business and reward shareholders.

Free Cash Flow Decline

A significant drop in free cash flow growth limits the company's ability to fund operations, pay dividends, and reduce debt, potentially impacting its financial flexibility and long-term growth prospects.

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 and management of its hotel properties, which includes room bookings, food and beverage sales, and ancillary services offered at its facilities. The company also benefits from long-term lease agreements with hotel operators, ensuring a steady income stream. Key revenue sources include occupancy rates, average daily rates (ADR) charged to guests, and management fees from properties it operates. Additionally, strategic partnerships with renowned hotel brands enhance the trust's marketability and operational efficiency, further contributing to its revenue growth. Seasonal demand fluctuations, economic conditions, and tourism trends are significant factors that impact its earnings, making the company sensitive to the broader hospitality industry's performance.

CDL Hospitality Trusts Financial Statement Overview

Summary

Revenue continued to recover and operating profitability (EBIT/EBITDA) remains positive, but net income turned negative in 2025 and is volatile. Leverage increased meaningfully in 2025 (debt up to 1.68B), and operating cash flow fell sharply YoY with uneven free-cash-flow reliability, raising financial risk for a cyclical hotel REIT.

Income Statement

Revenue has grown steadily since 2020 and reached 267.6M in 2025 (+3.7% YoY), showing demand recovery and improving top-line stability. Profitability, however, is volatile: net income swung from a strong profit in 2022–2023 to a small profit in 2024, then turned negative in 2025 (-29.5M) despite positive EBIT/EBITDA, suggesting higher non-operating costs (e.g., interest, depreciation, or one-offs) are pressuring the bottom line. Overall, the business is generating operating earnings, but the inconsistency in net profit reduces quality and predictability of results.

Balance Sheet

The balance sheet is asset-backed with total assets of 3.48B (2025) and equity of 1.79B, providing a meaningful capital base. Leverage is a key constraint: total debt increased to 1.68B in 2025 from 1.48B in 2024, and historical debt-to-equity levels have generally sat around the ~0.7–0.8 range (where provided), which is material for a cyclical hotel REIT. Equity has been broadly stable but not growing, so rising debt raises financial risk if operating conditions weaken or refinancing costs rise.

Cash Flow

Cash generation is mixed. Operating cash flow was positive across the period and remained positive in 2025 (63.2M), but it dropped sharply from 2024 (120.7M), indicating weaker cash conversion year over year. Free cash flow is volatile: negative in 2024 (-47.7M), positive in 2025 (39.3M), and includes a very large outflow in 2020; 2025 free cash flow also declined significantly versus the prior year on a growth basis (as provided). With net income turning negative in 2025 and free cash flow fluctuating, cash flow reliability is a moderate concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	257.99M	267.57M	260.26M	257.56M	229.36M	157.72M
Gross Profit	161.69M	129.69M	135.22M	169.39M	123.72M	86.11M
EBITDA	105.25M	107.99M	98.16M	118.81M	145.46M	101.76M
Net Income	-1.77M	-29.49M	14.37M	123.21M	215.28M	67.93M
Balance Sheet
Total Assets	3.47B	3.48B	3.45B	3.30B	3.10B	2.92B
Cash, Cash Equivalents and Short-Term Investments	80.67M	87.06M	78.29M	72.00M	96.93M	139.46M
Total Debt	1.53B	1.39B	1.48B	1.29B	1.21B	1.19B
Total Liabilities	1.66B	1.69B	1.61B	1.42B	1.31B	1.28B
Stockholders Equity	1.80B	1.79B	1.83B	1.88B	1.79B	1.64B
Cash Flow
Free Cash Flow	118.90M	39.31M	-47.74M	34.96M	60.53M	41.00M
Operating Cash Flow	118.90M	63.24M	120.71M	123.77M	116.41M	62.53M
Investing Cash Flow	-158.53M	-41.79M	-167.04M	-87.30M	-98.22M	-43.87M
Financing Cash Flow	55.05M	-14.11M	54.19M	-61.52M	-51.93M	-7.16M

CDL Hospitality Trusts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.86
• 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 Positive. The current price of 0.86 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.83, and above the 200-day MA of 0.79, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	S$1.26B	11.92	6.62%	6.29%	0.70%	71.84%
JYEU	70 Neutral	S$1.70B	18.55	2.88%	8.01%	-6.64%	-12.15%
Q5T	69 Neutral	S$1.20B	40.41	1.92%	7.16%	-3.65%	-69.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
J85	57 Neutral	S$1.07B	-36.05	-0.10%	5.84%	-2.96%	-101.38%
AU8U	53 Neutral	S$1.18B	-122.73	0.04%	6.66%	-8.59%	-93.48%

CDL Hospitality Trusts Corporate Events

CDL Hospitality Trusts Issues New Stapled Securities to Pay Management Fees

CDL Hospitality Trusts has issued 2,240,837 new stapled securities as payment of 80% of the base management fees for its REIT and business trust managers for the period from 1 October 2025 to 31 December 2025, at an issue price of S$0.8199 per stapled security, reflecting the 10-day volume-weighted average market price. The move, which brings the total stapled securities in issue to 1,273,011,283, underscores the managers’ continued practice of taking a significant portion of their fees in securities rather than cash, modestly diluting existing unitholders while aligning management’s interests more closely with those of investors and conserving cash within the trust structure.

The most recent analyst rating on (SG:J85) stock is a Buy with a S$1.00 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 Reshapes Board and Committees Ahead of 2026

CDL Hospitality Trusts has announced a series of board and committee changes effective 23 January 2026 to align with regulatory requirements and strengthen governance. Independent non-executive director Kenny Kim will step down from the boards of the REIT manager and business trust trustee-manager, as well as from their audit, risk and sustainability committees, in compliance with updated independence criteria. He will be succeeded by Richard Anthony Johnson, who joins as an independent non-executive director and member of the audit and risk committees, bringing extensive experience in real estate assets and hospitality-related businesses that is expected to enhance the boards’ core competencies. In addition, independent director Ms Chan Soon Hee, Eric, will assume membership of the board sustainability committees in place of Kim, reflecting a reconfiguration of committee responsibilities while maintaining independent oversight.

The most recent analyst rating on (SG:J85) stock is a Buy with a S$1.00 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 Secures New Lease for Grand Millennium Auckland

CDL Hospitality Trusts has entered into a new lease agreement with Hospitality Services Limited for the Grand Millennium Auckland hotel. The lease, effective from November 24, 2025, spans five years with an option for renewal and includes a rental structure based on the hotel’s net operating profit, offering both downside protection and potential upside for CDLHT. The hotel, which has recently been upgraded and earned a 5-star rating, is strategically positioned to benefit from increased demand with the upcoming opening of nearby infrastructure and convention facilities.

The most recent analyst rating on (SG:J85) stock is a Buy with a S$1.00 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 Issues S$150 Million Perpetual Securities

CDL Hospitality Trusts has successfully issued S$150 million in subordinated perpetual securities under its S$1.5 billion Multicurrency Debt Issuance Programme. These securities have been listed on the Singapore Exchange, marking a significant step in the company’s financial strategy, potentially enhancing its market position and offering new opportunities for stakeholders.

The most recent analyst rating on (SG:J85) stock is a Buy with a S$1.00 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 Prices S$150 Million Perpetual Securities

CDL Hospitality Trusts has announced the pricing of S$150 million subordinated perpetual securities at a rate of 3.70% under its S$1.5 billion Multicurrency Debt Issuance Programme. This strategic financial move is expected to enhance the company’s capital structure, providing flexibility and potentially impacting its financial stability and attractiveness to investors.

The most recent analyst rating on (SG:J85) stock is a Buy with a S$1.00 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 Launches S$1.5 Billion Debt Issuance Programme

CDL Hospitality Trusts has announced the establishment of a S$1.5 billion Multicurrency Debt Issuance Programme. This initiative allows the company to issue notes and perpetual securities in various currencies, enhancing its financial flexibility and potentially strengthening its market position by diversifying funding sources.

The most recent analyst rating on (SG:J85) stock is a Buy with a S$1.00 price target. To see the full list of analyst forecasts on CDL Hospitality Trusts stock, see the SG:J85 Stock Forecast page.