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 Operation
• 5.3% 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:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

To support my work, check out:

Patreon - Subscribe and get exclusive content

Investing Note - Support by following my Investing Note profile

X - Support by following my X account

Facebook Page - Support by liking my Facebook Page    

Facebook Group - REIT Investing Community - Join to share and discuss REITs

Telegram Channel - Singapore REITs Post - Join to receive posts for Singapore REITs

Buy Me a Coffee - Treat me a coffee for my efforts

*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.