CDL Hospitality Trust

CDL Hospitality Trust: CDL H Trust announced a $25m (fully debt-funded) AEI at the Orchard Hotel Shopping Arcade (OHSA). This will add ~10,000 sf NLA and will likely complete by end-2014 (work begins end-13). OHSA accounts for 3% of FY12’s NPI. FY14’s NPI is expected to be impacted by the closure of the mall during the AEI period. However, CS expects the impact to be partly mitigated by the hospitality income across its portfolio. CS maintains OUTPERFORM, with new TP of $2.31 (from $2.30). At current price of $1.93, CS estimates a 6.2% yield.