CDL Hospitality Trusts (CDLHT) posted net property income of S$71.1 million for the six months ended Dec 31, 2025, up 3.5 per cent year-on-year, as stronger room rates and occupancies in Singapore, Australia, New Zealand, Japan and the United Kingdom offset renovation-related disruptions. Revenue rose 7.2 per cent to S$142.5 million, while lower borrowing costs further supported distributable income.
The stapled group declared a distribution per stapled security of 2.82 Singapore cents for the half-year, a 0.4 per cent YoY increase. The payout will be funded from operating cash flow and will be distributed after retaining amounts for working capital; payment details were not disclosed. For the full year, distribution per stapled security fell 9.8 per cent to 4.80 cents as renovation downtime and higher operating costs weighed on full-year earnings.
Segmentally, the Singapore portfolio generated a marginal 1.1 per cent decline in NPI to S$46.1 million, held back by room refurbishments at W Singapore – Sentosa Cove. Excluding that hotel, Singapore NPI would have risen 2.9 per cent. In Australia, the Perth hotels almost doubled half-year NPI to S$3.9 million on a 33.2 per cent jump in RevPAR, helped by the refurbishment of Ibis Perth. The UK assets, including newly acquired Hotel Indigo Exeter and rental income from The Castings and Benson Yard, lifted UK NPI by 54.5 per cent for the full year to S$23.7 million, although half-year hotel-only NPI eased 2.7 per cent on higher costs. The Maldives resorts recorded a S$0.5 million YoY decline in NPI as intensified competition eroded room yields, while the Germany and Italy hotels posted lower contributions following exceptional comparison bases and accounting adjustments.
Interest expense fell 14.6 per cent in 2H to S$23.9 million, reflecting the refinancing of higher-cost debt and proceeds from a S$150.0 million perpetual securities issue in November 2025. As a result, the weighted average cost of debt improved to 3.0 per cent and gearing moderated to 37.7 per cent, giving the trust S$819.1 million of headroom to the 50 per cent statutory limit.
Looking ahead, CDLHT plans to complete the 475-room Moxy Singapore Clarke Quay in 2027, targeting the city-state’s growing lifestyle segment. Management also highlighted the completion of room upgrades at W Singapore and Grand Millennium Auckland, which are expected to underpin operating recovery in 2026. The trust continues to evaluate selective asset-enhancement initiatives and maintains S$193.5 million in cash and undrawn revolving facilities, along with S$400 million of uncommitted bridge loans, to fund future opportunities.
Chief executive Vincent Yeo said the trust spent 2025 “transitioning” through major refurbishments and a shifting rate environment. He indicated that the lower proportion of fixed-rate debt positions CDLHT to benefit from declining interest rates, while stabilising contributions from recently acquired UK living assets should support earnings momentum in the new financial year.