CDLH Trust

CDLH Trust: 3Q12 below OCBC’s expectations. Gross revenue was $36.1m, -0.8% YoY. Net property income contracted 1.1% YoY to $33.6m. CDLHT’s Singapore hotels saw slightly lower revenue per available room (RevPAR) due to a slowdown due to the weak global economic environment, and the fixed rent contribution from the Australia hotels was slightly lower YoY due to translation loss arising from the weakening AUD. 3Q12 average room rates for the Singapore hotels stayed flat at $236 but occupancy fell from 89.5% in 3Q11 to 88.6%. RevPAR declined 0.9% YoY to $209. Income available for distribution per stapled security, after deducting income retained for working capital, declined by 1.8% YoY to 2.72 cents. This translates to an annualized distribution yield of 5.23%, based on last close at $2.07. The units pay distributions semi-annually. Mgt says, with a healthy gearing of 25.5%, it is actively sourcing for acq opportunities in the hospitality in the next 12 mths. OCBC expects 4Q12 to be weak as well, maintains at Hold and says it will be adjusting its current TP of $2.06. At last close, the units trade at 1.3x P/B