Follow us on Twitter Find us on Facebook

YTL CORPORATION

YTL SUSTAINABILITY

UTILITIES
YTL POWER INT.

CONSTRUCTION
YTL CONSTRUCTION

MANUFACTURING
YTL CEMENT

PROPERTY DEVELOPMENT
YTL LAND & DEV.

REIT
YTL HOSPITALITY REIT
STARHILL GLOBAL REIT

TECHNOLOGY
YTL E-SOLUTIONS

COMMUNICATIONS
YTL COMMS.
YTL BROADBAND

EDUCATION
YTL FOUNDATION
FROGASIA
FROG EDUCATION LIMITED

TRANSPORTATION
EXPRESS RAIL LINK

CARBON CONSULTING
YTL-SV CARBON

ENTERTAINMENT
KL PAC

RESTAURANTS
LOT 10 HUTONG
FEAST VILLAGE
SHOOK! SHANGHAI

SHOPPING
L0T 10 SHOPPING CENTRE
STARHILL GALLERY
WISMA ATRIA
NGEE ANN CITY
RENHE SPRING ZONGBEI
DAVID JONES
MYER CENTRE ADELAIDE
PLAZA ARCADE

HOTELS & RESORTS
YTL HOTELS

ADVOCACY PROJECTS
EARTH HOUR


YTL Hospitality REIT - 4QFY18 earnings in-line

   

Maybank Research, August 1, 2018

YTL Hospitality REIT
BUY
Target Price: MYR1.50

Maintain BUY
4QFY6/18 results and final gross DPU of 1.97sen (FY18: 7.87sen) were within our estimates as bottomline growth was largely attributed to new asset contribution and better earnings at the Australian hotels. We adjust our FY19-20 earnings forecasts by +1 to +3% but maintain our MYR1.50 TP due to marginal changes in our DDM-valuation (cost of equity: 8.6%).

Lifted by new asset, rentals and Australian hotels
Excluding one-off gains of MYR32.5m (mainly from fair value gain of properties), 4QFY18 core net profit was MYR35.0m (+31% YoY, -17% QoQ), bringing FY18 core earnings to MYR154.7m (+29% YoY) which accounts for 102%/105% of our/consensusí FY18 estimates. 4QFY18ís YoY earnings were lifted by (i) contributions from The Majestic Hotel Kuala Lumpur (acquired on 3 Nov 2017), (ii) step-up of lease rentals at The Ritz Carlton Suite and Hotel Wing, and (iii) improvement at the Australian hotels - average occupancy was 85.8% (4QFY17: 85.0%) and average daily rate improved by 3% YoY. The Australian hotels also had cost saving initiatives which have lifted NPI margin. However, 4QFY18 earnings were partly mitigated by stronger MYR against AUD which has resulted in softer YoY revenue for its Australia portfolio.

Tweaking estimates
We nudge up our FY19/20 net profit forecasts by 3%/1% after adjusting for FY18 full-year results. Our growth estimates are still largely driven by better performance at the Australian properties (i.e. higher room rates and occupancy rates). We also introduce our FY21 earnings forecast.

Positive on earnings outlook
We continue to like YTLREIT for its stable, recurring rental income from its assets in Malaysia and Japan, and earnings growth prospects coming from its hotels in Australia. Elsewhere, we are also positive on its strong pipeline of hospitality assets from its sponsor, YTL Corp (YTL MK; Not Rated).





Back
  17 July 2019
1:00:42 PM
MoE should have promoted 1BestariNet better  
 
  17 July 2019
1:07:15 PM
Affin Hwang urges YTL Land shareholders to accept swap deal  
 
  10 July 2019
9:32:55 AM
YTL Communications deploys Gigawire Terragraph technology aiding Penang's Smart State initiative  
 
  9 July 2019
5:58:20 PM
Claiming world first, YTL rolls out new high-speed broadband technology using old copper wires  
 
  9 July 2019
10:18:55 AM
A Masterpiece To Call Home at Orchard Boulevard  
 
  3 July 2019
12:06:20 PM
YTL's The Westin Hotel receives Australian Architecture Award  
 
  26 June 2019
8:44:45 PM
Designation of Executive Chairman & Appointment of New Independent Directors for Lafarge Malaysia  
 
  19 June 2019
4:03:19 PM
Thereís a solution for TMís Streamyx problem all along  
 
  15 July 2019
10:17:37 AM
ERL Leads The Way with Cashless Partners  
 
  15 July 2019
10:02:45 AM
DIscover Kuala Lumpur: A Sneak Expedition Into The City  
 
 
 

Contact Us | Newsletter | Privacy Policy
Twitter | Facebook
 
Terms, Conditions and Disclaimers
Copyright © 2001 - 2019 All rights reserved.
Powered by YTL e-Solutions Bhd.