Brokers' take

CDL Hospitality Trust | Outperform Target price: S$1.64 April 27 close: S$1.53 Credit Suisse, April 27

CDL Hospitality Trust's Q1 17 distribution per unit of 2.42 Singapore cents was in line at 24-25 per cent of Credit Suisse and street's full-year estimates. Revenue and net property income were up 3.9 per cent and 6.4 per cent year on year respectively, mainly due to significantly stronger (+90 per cent yoy) contribution from NZ which benefited from strong revenue per available room growth and a change in lease structure. While we do note that more supply will be entering the market in Q2 17, many of the hotels will be operated by global brands such as Novotel, Intercontinental, Sofitel and Ibis which should arguably be less prone to making substantial rate cuts compared to smaller hotel brands.

Suntec Reit | Hold Target price: S$1.80 April 27 close: S$1.765 UOB Kay Hian, April 27