• It is important to look at present and forward planning, especially in current circumstances of fast changes and interest rates changes (important criteria for trusts).
• Whoever quoted an old text from July is out of date and completely with the wrong context.
• Q3 2025 is materially stronger than Q1 2025 across Singapore' s hotel/hospitality sector, and broadly as good as or better than Q2 on hotel quality metrics (occupancy, ADR, RevPAR)  led by Marina Bay Sands (MBS) whose hotel metrics in Q3 were near-record levels after renovation completion. CDLHT' s own Q1/1H results lagged this sector improvement, so CDLHT may still be catching up as the sector turned up in Q3.
• Other large groups (Genting Singapore, Shangri-La, CapitaLand/Ascott) show the same directional picture: Q1 weakness (renovations, soft corporate demand) &rarr Q2 recovery in parts &rarr Q3 stronger demand and hotel performance, helped by completed renovations, events/MICE and tourism tailwinds though variance exists by company and segment.
• CDLHT specifics matter: CDLHT' s own Q1/1H weakness was concentrated in its Singapore hotel portfolio (lower RevPAR, occupancy) and its assets/renovation timing differ from MBS. So even though the sector is improving by Q3, CDLHT may lag if its Singapore assets still face renovation drag, weaker corporate demand or other idiosyncratic issues.

CDL Hospitality Trusts Faces Challenging Climate: DPU Slumps Amid Renovations and Rising Costs

Overview: CDL Hospitality Trusts Under Pressure with DPU Down 21%

Key Financial Highlights and Performance

• 1HFY25 DPU:  SGD 1.98 cents, down 21.1% YoY
• 1H Revenue:  SGD 125.1 million, down 1.8% YoY
• Net Property Income (NPI):  SGD 58.6 million, down 11.9% YoY
• Singapore Hotels RevPAR:  Fell 14.2% YoY due to a high base
• Gearing:  Stable at 42%, up slightly from 41.8% in 1Q
• Cost of Debt:  Declined from 3.9% to 3.6%, with further 10bps reduction guided
• 12M Price Target:  SGD 0.70 (cut from SGD 0.75), reflecting a 9% downside
• Current Share Price:  SGD 0.83
• Market Capitalisation:  SGD 1.0B
• DPU Yield (FY25E):  5.9%

Challenging Operating Conditions Across Key Markets

• W Hotel Singapore Renovations:  Accounted for 40% of the NPI decline. Management expects the bulk of the renovations to be completed by year-end, which should help lift performance in the next fiscal year.
• UK Market:  Provided support through contributions from recent acquisitions (The Castings, Benson Yard, Hotel Indigo Exeter), but overall DPU was dragged down by higher borrowing and interest costs associated with UK Build-to-Rent (BTR) projects.
• Other Overseas Markets:  NPI declined in most markets except UK, Japan, and Australia. Japan and Germany showed positive RevPAR growth, while New Zealand, Maldives, UK, and Italy saw declines.
• Interest Expenses:  While same-store interest expenses fell, overall interest costs rose 4.2% due to UK acquisitions and the expensing of borrowing costs for The Castings

Revised Estimates and Lowered Target Price