CDL Hospitality Trust - Time for a breather

CDLHT's current share price of S$1.47 has exceeded its book value per share of S$1.42 while yields of 5.5% are lower than the REIT average of 8.2%. Even though Singapore's tourism indicators continue to improve and we have bullish above-consensus estimates for CDLHT, we believe most of the positives are in its share price and downgrade it to Neutral from Outperform. Our estimates and DDM-based target price of S$1.41 are unchanged. PLife REIT appears a cheaper and safe alternative at 0.8x P/V with forward yields of 6.8%.

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