ARA US Hospitality Trust's 2H FY23 Result Review
Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Revenue, NPI and distributable income have improved YoY. The significant increase in NPI is attributed to lower property taxes resulting from property tax refunds.
RevPAR
RevPar has shown signs of improvement and has increased YoY.
Related Parties Shareholding
The REIT manager, and directors of the REIT manager hold a relatively low proportion of shareholding.
Lease Profile
The weighted average land lease expiry is long. However, the WALE is short with a concentrated lease expiry.
Debt Profile
The cost of debt is high, and debt maturity is concentrated. Additionally, the proportion of unsecured debt is low.
Diversification Profile
The portfolio exhibits geographical and property diversification, but tenant contribution is concentrated.
Key Financial Metrics
The property yield and operating distributable income on capital are relatively high. Additionally, the management fee is low compared to operating distributable income. However, the operating distributable income margin is low.
DPU Breakdown
TTM Distributable Income Breakdown:94.7% from Operation5.3% from Management Fees Paid in Units
TTM DPU = 69.3% of Distributable Income
Trends
Uptrend: Property Yield, Operating Distributable Income on Capital
Slight Downtrend: NAV per Unit
Downtrend: DPU from Operation, Adjusted Interest Coverage Ratio, Operating Distributable Income Margin
Relative Valuation
Dividend Yield - Average for 1y; Above +1SD for 3y & 5y
P/NAV - Average for 1y; Below -1SD for 3y & 5y
Author's Opinion
Compared to the previous half-year, performance has improved, with signs of REVPAR improvement. Additionally, there are no refinancing requirements for debt in 2024.
For more information, check out REIT-TIREMENT
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