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
YTL CCW
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
  16 January 2019
12:52:47 PM
Singtel launches ad to promote its entry into electricity retail market  
 
  3 January 2019
5:46:14 PM
Affin Hwang raises target price for YTL REIT  
 
  20 December 2018
5:48:34 PM
YTLís uncanny timing  
 
  5 December 2018
5:48:45 PM
YTL launches 3 Orchard-By-The-Park  
 
  3 December 2018
11:35:44 AM
Express Rail Link wins Project of the Year award at Global AirRail Awards  
 
  3 December 2018
11:55:20 AM
ERL wins Project Of The Year Award at the Global AirRail Awards 2018  
 
  23 November 2018
6:25:31 PM
YTL Corp Records 1st Quarter Revenue of RM4.1 Billion (US$976 Million) & Profit Before Tax of RM342 Million (US$82 Million)  
 
  16 November 2018
2:33:02 PM
YTL PowerSeraya launches retail arm Geneco amidst opening of Singapore's electricity market  
 
  31 December 2018
9:51:09 AM
Reviving Heritage  
 
  1 November 2018
2:52:08 PM
YTL key leaders describe their leadership style  
 
 
 

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