CDL Hospitality Trust

CDL Hospitality Trust: CDLHT buys second asset in Maldives, Jumeirah Dhevanafushi (JD), for US$59.6 mn. Opened in Nov-11, the 35-room luxury hotel is still in its early years but has already achieved US$754 REVPAR for 9M13. Acquisition expected to complete by year-end. The deal allows CDLHT to leverage on Maldives' buoyant hospitality sector, supported by strong demand-supply dynamics (only 2.9% new supply in 2014 versus 18% visitor arrival growth for 10M13) with future upside coming from the additional 13% of area that can be developed (17% built-up currently). CS believe 9M annualised 6.2% NPI yield is understated given the seasonally strong 4Q and 1Q. Acquisition will be financed with US$ debt, bringing gearing to 30.6%. Latest broker ratings as follows: CS maintains Outperform with $2.00 TP Daiwa maintains Buy and raised TP to $1.80 from $1.78 OCBC maintains Buy and raised TP to $1.84 from $1.83 CIMB maintains Hold and raised TP to $1.79 from $1.76