CDLHT posts 0.4% rise in H2 DPS to S$0.0282

[SINGAPORE] After five consecutive quarters of posting year-on-year declines in net property income (NPI), CDL Hospitality Trusts finally reported an increase for the fourth quarter ended Dec 31, 2025.

The stapled group’s NPI for Q4 FY2025 was S$36.8 million, up 13.8 per cent year on year.

For the second half of 2025, CDLHT posted a 3.5 per cent rise in NPI to S$71.1 million from S$68.7 million in H2 2024. The increase followed year-on-year declines in NPI for H1 2025 and H2 2024.

In its regulatory filing before the stock market opened on Friday (Jan 30), CDLHT said that the 3.5 per cent year-on-year increase in its NPI in H2 2025 was partly affected by ongoing room renovation works at W Singapore – Sentosa Cove as well as Grand Millennium Auckland. Excluding these two assets, NPI would have increased by 6.3 per cent.

The extensive refurbishments of both hotels have been completed. Ibis Perth was relaunched in early 2025 after a revamp.

Physical occupancy at The Castings – CDLHT’s residential build-to rent project in Manchester, UK – ramped up to 90.3 per cent as at Dec 31, 2025; the property opened in July 2024.

The group reported distribution per stapled security (DPS) of S$0.0282 for H2 2025, up 0.4 per cent from S$0.0281 in H2 2024. The latest DPS will be paid on Feb 27.

Distributable income rose 1.2 per cent to S$35.9 million for H2, from S$35.4 million in the same period the year before.

Revenue for the half-year period was up 7.2 per cent at S$142.5 million, from S$132.9 million in the year-ago period.

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“Interest expense for H2 2025 fell 14.6 per cent year on year, driven by the flow-through of competitively priced refinancing initiatives undertaken in the prior and current year, as well as the easing of interest rates,” the managers of CDLHT said.

“The group’s mix of fixed and floating rate debt, together with the use of interest rate swaps, helped reduce funding costs during the period. Higher-cost borrowings were also repaid using proceeds from the S$150 million perpetual securities issuance in November 2025, which will translate to interest cost savings in subsequent reporting periods,” the managers added.

At a media briefing following the release of the group’s H2 FY2025 results, Vincent Yeo, chief executive officer of the managers of CDLHT, said: “I would say that 2025 was a year of transition, both in terms of transformation of some of our assets, as well as the whole interest-rate scenario, moving from a high interest rate environment to a much lower one.”

Elaborating on its H2 2025 results, CDLHT said the 3.5 per cent increase in NPI was driven by stronger contributions from Australia, New Zealand and Japan, as well as inorganic contributions from the UK portfolio, which mitigated softer trading conditions in other markets. NPI from the living assets in the UK - comprising The Castings and Benson Yard, a purpose built student accommodation in Liverpool acquired in December 2024 – rose to S$4.5 million in H2 2025 from S$401,000 in H2 2024. However, NPI from UK hotels slipped 2.7 per cent year on year to S$8.5 million in H2 2025, although revenue per available room (RevPAR) in pound sterling was flat.

RevPAR for CDLHT’s Singapore hotels inched up 1.6 per cent to S$198 in H2 2025. Demand strengthened, underpinned by major events such as the World Aquatics Championships, Formula 1 Singapore Grand Prix and concerts. However, the NPI for the group’s Singapore portfolio dipped 0.6 per cent in H2 to S$43.5 million.

RevPAR from New Zealand - where CDLHT’s sole asset is the Grand Millennium Auckland – rose 1.5 per cent in local currency terms. The NPI rose 7 per cent in local currency terms, or 1.8 per cent in Singapore dollar terms to S$2.1 million amid a depreciation of the New Zealand dollar. In Australia, RevPAR (in local currency) for CDLHT’s hotels surged 33.2 per cent in H2 driven by the newly renovated Ibis Perth, which gained strong market traction since its relaunch in early 2025. NPI from Australia jumped 93.9 per cent to nearly S$4 million.

RevPAR from the Japan hotels rose 4.1 per cent in local currency in H2; NPI rose 3 per cent to S$2.3 million, with some gains partly offset by the Japanese yen’s depreciation against the Singapore dollar.

CDLHT’s resorts in Maldives and hotels in Germany and Italy posted declines in RevPAR and NPI in H2 2025.

On a brighter note, Yeo said: “We are transitioning towards a stronger footing as we commence 2026.”

Among other factors, he cited the recently refurbished hotels, The Castings progressively contributing a more stabilised level of income post-gestation, and the group’s ability to capitalise on the lower interest rate environment due to its low proportion of fixed-rate borrowing

Yeo also pointed to the potential of an eventual recovery in visitor arrivals to Singapore from the key markets of China, Indonesia and India, to 2019 pre-pandemic levels.

A stronger 2026 events calendar is expected to underpin demand for the group’s Singapore portfolio, he added.

CDLHT closed at S$0.865 on Friday up S$0.025 or 3 per cent.

Meanwhile, for the full year ended Dec 31, 2025, DPS was 9.8 per cent lower at S$0.0480, versus S$0.0532 the previous year.

Distributable income fell 8.9 per cent to S$60.9 million from S$66.9 million.