CDL Hospitality Trusts (J85) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: 5.77%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• 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: 1,270,770,400
• 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: 2.35
• Enterprise Value/Revenue: 9.49
• Enterprise Value/Gross Profit: 15.15
• Enterprise Value/Ebitda: 23.27
• 1Y Price Target: $1.00
• Price Target Upside: 18.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: S$1.00 ▲(19.05% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and negative net income. Technical analysis shows positive momentum, but caution is advised due to potential overbought conditions. The valuation is mixed, with a high dividend yield but negative earnings. The absence of earnings call and corporate events data limits additional insights.

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 (J85) is a real estate investment trust (REIT) that focuses on the hospitality and leisure sectors. The company primarily invests in a diversified portfolio of hotel and resort properties across key markets, aiming to generate sustainable income and capital appreciation for its unitholders. CDL Hospitality Trusts operates a variety of assets, including hotels, serviced residences, and commercial properties, catering to both leisure and business travelers.

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

CDL Hospitality Trusts faces challenges in revenue and profit growth, with declining revenue and negative net income. The stable debt-to-equity ratio and adequate cash flow generation are positives, but the significant drop in free cash flow growth and negative return on equity highlight the need for improved operational efficiency.

Income Statement

CDL Hospitality Trusts shows a mixed performance in its income statement. The TTM data indicates a significant decline in revenue growth rate by 43.9%, and the net profit margin has turned negative at -0.69%. However, the gross profit margin remains relatively strong at 62.67%, and the EBIT margin is healthy at 31.92%. The company needs to address the declining revenue and net income to improve its financial health.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is stable at 0.85, indicating manageable leverage. However, the return on equity is slightly negative at -0.10%, suggesting inefficiencies in generating returns for shareholders. The equity ratio stands at 51.82%, showing a balanced capital structure but highlighting the need for improved profitability.

Cash Flow

Cash flow analysis reveals challenges in free cash flow growth, which has decreased by 75.3% in the TTM period. The operating cash flow to net income ratio is 0.30, indicating a reasonable conversion of income to cash. The free cash flow to net income ratio is 1.0, suggesting that the company is generating sufficient cash relative to its net income, despite the negative net income.

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: Positive
• Last Price: 0.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.84 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.82, and above the 200-day MA of 0.79, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, 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	$1.32B	11.97	6.62%	6.35%	0.70%	71.84%
JYEU	70 Neutral	S$1.58B	29.26	2.88%	7.88%	-6.64%	-12.15%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AU8U	65 Neutral	S$1.37B	1,316.67	0.04%	6.54%	-8.59%	-93.48%
Q5T	65 Neutral	S$1.24B	34.38	1.92%	7.16%	-3.65%	-69.86%
ACV	62 Neutral	―	―	―	―	7.02%	-79.65%
J85	54 Neutral	$1.04B	-585.71	-0.10%	5.77%	-2.96%	-101.38%

CDL Hospitality Trusts Corporate Events

CDL Hospitality Trusts to Release Q3 2025 Operational Update

CDL Hospitality Trusts has announced that it will release its operational update for the third quarter and nine months ending 30 September 2025 on 30 October 2025 before trading hours. This update is crucial for stakeholders as it will provide insights into the company’s performance and market positioning, potentially impacting investor decisions and market perceptions.

CDL Hospitality Trusts Rebrands Maldives Resort Under Marriott’s Autograph Collection

CDL Hospitality Trusts announced the rebranding of its Maldives resort, currently known as Raffles Maldives Meradhoo, to The Halcyon Private Isles Maldives, Autograph Collection, effective 1 November 2025. This transition involves a new franchise agreement with Marriott International, placing the property under the Autograph Collection brand, which is known for its unique and immersive hotel experiences. The rebranding aims to enhance the resort’s market positioning by leveraging Marriott’s global systems and standards, while maintaining uninterrupted operations during the transition.

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.