HPI – Morgans rates the stock as Hold

Hotel Property has declared a final distributional of 9.7c for FY20, ahead of Morgans’ forecast. This brings total distributions to 20c.

Morgans continues to assume FY21 distributions fall to 18.6c, incorporating recent lease renewals and assumptions about lower income because of the pandemic.

The deferment of rent previously announced in May is not expected to materially affect earnings in the forecast period.

The company will report FY20 results on August 18. Morgans retains a Hold rating and raises the target to $3.10 from $2.82.

Sector: Real Estate.

Target price is $3.10.Current Price is $2.99. Difference: $0.11 – (brackets indicate current price is over target). If HPI meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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