Ytl Hospitality Reit

$YTLREIT / 5109 (YTL HOSPITALITY REIT)
Research Report by MAYBANK

People often flock to blue-chip stocks or REITs, or well-known PLCs when they first start investing in Bursa. After all, it’s considered the “safest”.

I remember buying $MAYBANK / 1155 (MALAYAN BANKING BERHAD) $CIMB / 1023 (CIMB GROUP HOLDINGS BERHAD) $KLSE-CAPITALA $SUNREIT / 5176 (SUNWAY REAL ESTATE INVESTMENT TRUST) $YTLREIT / 5109 (YTL HOSPITALITY REIT) ... that was 5 years ago.

As one progresses further, then you’ll start to know that there are more than just those handful of stocks. Then, you start to learn about basic ideas like dividend yield, and realise many misconceptions like share price doesn’t mean the stock is expensive or cheap.

PSA: A RM1.50 stock is not more “expensive” than RM0.95…… a better measure is to look at the market capitalization. But even then, that’s just barely scratching the surface of valuation.

To determine if the company is a “good deal” or an “expensive deal” is going into valuation, and it is knowing how much you are paying for the thing you're buying.

If you do not know what you are buying, how would you know if you’re paying a good price for it?

Imagine, there are 2 mystery gift boxes in front of you:
Giftbox A has nothing, but may have good packaging, it is RM100 price tag
Giftbox B has 10g gold bar in it, but is in a carton box, it is RM1000 price tag.
Which is more expensive?

In this context, share price is just the price tag, it doesn't indicate if you are buying something valuable or with a reasonable price.

So, how do you know the amount of “gold” inside the giftboxes? Look at stocks as businesses, read their quarter reports and annual reports, to KNOW what you are buying.

Anyway, I digress. I hope more people don’t just say a company stock is expensive just because it’s above RM1. Sekian.

$YTLREIT / 5109 (YTL HOSPITALITY REIT)
Research by Maybank
Hold – TP RM1.25

“4QFY24 earnings miss estimates"

FY24 core net profit was below expectations at 95%/97% of our/consensus estimates. The discrepancy was mainly due to higher-than-expected finance cost. FY24 distributable income increased 11% YoY to MYR140.9m. Final gross DPU of 4.09sen brings FY24 DPU to 8.26sen. We adjust our FY25/26E earnings forecasts by -1%/-2%, and revised lower our rolled-forward DDM-TP to MYR1.25 (-3sen; Ke: 7.7%). Our pick in the sector is Axis REIT (AXRB MK, CP MYR1.81, BUY, TP MYR2.12).

Analyst:
Nur Farah Syifaa
nurfarahsyifaa.mohamadfuad@maybank-ib.com

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONSYTL HOSPITALITY REIT ("YTL REIT")

PROPOSED RENTAL REVISIONS AND PROPOSED REFURBISHMENTS FOR:
(I) AC HOTEL KUALA LUMPUR TITIWANGSA ("ACKL");
(II) AC HOTEL PENANG BUKIT JAMBUL ("ACPG"); AND
(III) AC HOTEL KUANTAN CITY CENTRE ("ACKN")

(COLLECTIVELY, THE "PROPOSALS")

OTHERSYTL HOSPITALITY REIT ("YTL REIT") PRESENTATION - FINANCIAL PERFORMANCE FOR THE QUARTER ENDED 31 MARCH 2024

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

$YTLREIT / 5109 (YTL HOSPITALITY REIT)

OTHERSYTL HOSPITALITY REIT ("YTL REIT")

DEVELOPMENT OF A HOTEL IN AZA-SOGA, NISEKO-CHO, ABUTA-GUN, HOKKAIDO, JAPAN

Top 5 Dividend Yield REITs in Bursa Malaysia 🏢 🏘

Real Estate Investment Trusts (REITs) can be a valuable addition to an investor’s portfolio as they allow investors to participate in the real estate market without the need for significant capital or the responsibilities of property ownership. REITs are required to pay out at least 90% of distributable income to unitholders, so many investors flock to REITs for their regular dividend pay outs as part of a balanced portfolio.

Here, we have screened for the 5 highest Dividend Yielding REITs in Bursa! However, do bear in mind that DY is a lagging indicator and Stockbitors should always do due diligence to ascertain the health of a REIT before making any investing decisions!

$SENTRAL / 5123 (SENTRAL REIT) $HEKTAR / 5121 (HEKTAR REAL ESTATE INVESTMENT TRUST) $YTLREIT / 5109 (YTL HOSPITALITY REIT) $KIPREIT / 5280 (KIP REAL ESTATE INVESTMENT TRUST) $UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)

Companies stand to benefit if mega concerts are held in Malaysia

Swiftonomics, a term familiar to many, describes the phenomenon wherein Taylor Swift's concerts drive substantial economic growth in the cities where she performs. Economists estimate that these concerts contribute approximately S$300 million to S$400 million, equivalent to 0.2 percentage points of GDP, to Singapore's economy in the first quarter alone. This is why many countries are eager to host mega concerts as a means of bolstering their economies. If Malaysia were to host such mega concerts, several companies would stand to benefit.

1. $GENM / 4715 (GENTING MALAYSIA BERHAD)
Genting Malaysia, an integrated resort company, operates the renowned Resorts World Genting, a preferred venue for world-class entertainment events, including concerts. With a capacity of up to 5,000 seats, the Arena of Stars is Malaysia's premier concert and event location. It’s cool climate makes it one of the most popular concert venues in the country, likely leading to increased revenue streams from ticket sales, hotel bookings, and gaming activities. Genting Malaysia's integration of entertainment and hospitality positions it well to capitalize on the growing demand for concert-related experiences.

2. $KLSE-CAPITALA
As one of Southeast Asia's largest low-cost carriers, the company stands to gain significantly from the resurgence of the concert scene in Malaysia. AirAsia's extensive network of domestic and international flights would play a crucial role in transporting artists, crew members, and concertgoers, potentially driving up passenger traffic and improving the airline's financial performance.

3. $YTLREIT / 5109 (YTL HOSPITALITY REIT)
YTL Hospitality REIT, listed in 2005 with a current market capitalization of approximately RM2.03 billion, boasts a large portfolio of premier hotel assets in Malaysia. With the influx of foreign concertgoers into the country, the hotel business could see direct benefits. Moreover, fans of international artists may have higher spending power and be willing to stay in these premium hotels, further boosting revenue.

4. $PAVREIT / 5212 (PAVILION REAL ESTATE INVESTMENT TRUST)
In addition to hospitality, retail spending from tourists and foreigners could increase with the hosting of mega concerts. Mega shopping malls such as Pavilion Bukit Bintang and Pavilion Bukit Jalil, situated near the Axiata Arena, could become hotspots for concert attendees. Furthermore, these malls are often used as venues for pre-concert events such as meet-the-artist sessions and promotions.

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSYTL HOSPITALITY REIT ("YTL REIT")

PROPOSED ACQUISITION OF SYEUN HOTEL FROM SYEUN HOTEL BERHAD FOR A TOTAL CASH CONSIDERATION OF RM55,000,000

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONSYTL HOSPITALITY REIT ("YTL REIT")

PROPOSED RENOVATION OF A HOTEL IN IPOH, PERAK FORMERLY KNOWN AS "SYEUN HOTEL" ("PROPERTY")

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

$YTLREIT / 5109 (YTL HOSPITALITY REIT)
Research by Maybank
Hold - TP of MYR1.23

"2QFY24 earnings on track"

2QFY24 results and 1st interim gross DPU of 4.18sen (1HFY23: 3.06sen) were within expectations with 1HFY24 core earnings coming in at 53%/52% of our/consensus’ full-year estimates. No changes to our forecasts. However, we lower our beta assumptions to 0.6, in-line with Bloomberg indicative beta, deriving a higher TP of MYR1.26 (+17%). Downgrade to HOLD due to limited upside.

Analyst(s):
Nur Farah Syifaa
nurfarahsyifaa.mohamadfuad@maybank-ib.com

YTLREIT - Notice of Book Closure

Income Distribution

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

OTHERSYTL HOSPITALITY REIT ("YTL REIT") PRESENTATION - FINANCIAL PERFORMANCE FOR THE QUARTER ENDED 31 DECEMBER 2023

$YTLREIT / 5109 (YTL HOSPITALITY REIT)
Research by AmInvest
BUY - TP RM 1.26

"Acquires Hotel Syeun for RM55mil"

We maintain BUY on YTL Hospitality REIT (YTL REIT) with a higher fair value (FV) of RM1.26/unit (from RM1.11/unit previously) after reducing the 3-year beta in the equity cost for our revised WACC of 7.6%, reflecting improving sentiments in both the Malaysian and Australian hospitality segments (Exhibit 7). No changes to our neutral 3-star ESG rating (Exhibit 8).

 The FV implies a FY25F distribution yield of 7%, at parity to its pre-pandemic (2018-2019) median.

Analyst:
Khoo Zing Sheng
khoo.zing-sheng@ambankgroup.com

$YTLREIT / 5109 (YTL HOSPITALITY REIT)

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSYTL HOSPITALITY REIT ("YTL REIT")

PROPOSED ACQUISITION OF SYEUN HOTEL ("PROPERTY") FROM SYEUN HOTEL BERHAD FOR A TOTAL CASH CONSIDERATION OF RM55,000,000

$YTLREIT / 5109 (YTL HOSPITALITY REIT) $PAVREIT / 5212 (PAVILION REAL ESTATE INVESTMENT TRUST) $SENTRAL / 5123 (SENTRAL REIT) $AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)

$YTLREIT / 5109 (YTL HOSPITALITY REIT)
Research by AmBank
Buy (Maintained) – Target Price RM1.11

“Strong recovery in Australian portfolio’s occupancy”

We maintain BUY on YTL Hospitality REIT (YTL REIT) with an unchanged fair value (FV) of RM1.11/unit based on dividend discount model (DDM) (Exhibit 9). No changes to our neutral 3-star ESG rating (Exhibit 10).

Analyst:
Khoo Zing Sheng
khoo.zing-sheng@ambankgroup.com

OTHERSYTL HOSPITALITY REIT ("YTL REIT") PRESENTATION - FINANCIAL PERFORMANCE FOR THE QUARTER ENDED 30 SEPTEMBER 2023

Quarterly rpt on consolidated results for the financial period ended 30/09/2023

Change in Audit Committee - DATO' AHMAD FUAAD BIN MOHD DAHALAN

Change in Boardroom - DATO' AHMAD FUAAD BIN MOHD DAHALAN

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONSYTL HOSPITALITY REIT ("YTL REIT")

PROPOSED ACQUISITION OF THE HOTEL STRIPES KUALA LUMPUR, AUTOGRAPH COLLECTION ("PROPERTY") FROM HOTEL 25 SDN BHD FOR A TOTAL CASH CONSIDERATION OF RM138,000,000 AND PROPOSED LEASE OF THE PROPERTY