Hotel Property Investments: FY24 DPS ahead of pcp despite higher interest costs
About the author:
- Author name:
- By Fiona Buchanan
- Job title:
- Co-Head of Research, Senior Analyst
- Date posted:
- 21 August 2023, 7:30 AM
- Sectors Covered:
- Property, AREITS
- Hotel Property Investments' (ASX:HPI) result saw solid rental growth which helped offset higher interest costs. While around 68% of debt is hedged, higher interest costs remain a key factor. FY24 DPS guidance is set at 19.0cps (vs 18.6c in the pcp and vs MorgansE at 19.2c) which equates to a distribution yield of +6%.
- Future development capex will likely be funded via asset sales.
- We retain an Add rating with a (login to view) price target.
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