CDL HTrust

CDL HTrust: Positive guidance from Singapore Tourism Board.
Daiwa note that STB expects 13.5m-14.5m visitor arrivals for 2012 vs 13.2m for 2011, when visitor arrivals increased 13%YoY and believe the significance of STB’s projection is that visitor-arrival growth is unlikely to be negative for 2012, which house believe was the prevailing view in 2H11.

Reaffirm forecast for visitor arrival growth of 5% YoY for 2012, 8% YoY for 2013, and 8% YoY for 2014, and hotel-sector RevPAR growth of 4% YoY for 2012, 11% YoY for 2013, and 7% YoY for 2014. Maintain Buy for CDL HT, TP $2.10, which trades at attractive 2012-14E DPU yields of 7.2-8.4% vs S-REIT sector average of 6.8-7.5% and a superior 2011-14E DPU CAGR of 9.4% vs 4.5% for the S-REIT sector.