Deal Structure Could Be Key to CDL Hospitality Trusts' DPU -- Market Talk

Dow Jones
02/03

0433 GMT - The deal structure for a Singapore hotel acquisition could be key for CDL Hospitality Trusts' 2027 distribution per unit, according to CGS International analysts. The real-estate stapled trust is buying the hotel at a price tag of S$475 million, or 110% of its development costs, whichever is lower. CGS International expects the deal to be financed with 70% debt and 30% equity. However, the REIT has around S$800 million of debt headroom before reaching the regulatory gearing limit, and the analysts think the deal could be funded entirely with debt. That would enhance DPU accretion of the deal, benefiting CDL Hospitality Trusts' future distributions, they say in a note. CGSI raises its target price to S$0.90 from S$0.87 and maintains an add rating on CDL Hospitality Trusts, which is flat at S$0.875. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

February 02, 2026 23:33 ET (04:33 GMT)

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