CDLH Trust

CDLH Trust: 2Q11 results generally in line.
Revenue at $34.6m, +12.6% yoy, +7.1% qoq, driven by improved hospitality performance across the portfolio and contribution from the recently acq Studio M Hotel on 3 May ‘11. RevPAR for CDLH’s Spore hotels grew 4.8% to $205, as the higher avg room rate ($232, +5.5% yoy) offset a slightly lower avg occupancy rate (88.1%, -0.4 ppt yoy).

Net property income of $35.6m, +24% yoy, +18.3% qoq.
DPU is 2.96 cts, +15.2% yoy, despite having issued more units in exchange for the acq of Studio M Hotel. This translates to an annualised yield of 5.65% on yday's $2.10 closing price.
Distributions are semi-annually, hence the Trust will distribute 5.34ct for 1H11.
Gearing stands at 26.3%, with still plenty of debt headroom for acquisitions with target gearing at 40%.
On the tourism sector's outlook, the Trust notes Spore's monthly visitor arrivals have surged to record highs since Dec ‘09, and current year arrivals are outpacing STB's forecast of 12-13 m for 2011.
NAV flat at $1.53, which translates to a valuation of 1.4x P/B.