Hotel Property Investments: FY24 DPS ahead of pcp despite higher interest costs

About the author:

Fiona Buchanan
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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