HPI – Morgans rates the stock as Hold

Hotel Property Investments’ result was in-line with Morgans expectations.

The FY20 distribution was 20cps and the broker forecasts FY21 DPS of 19cps.

The analyst notes the company’s portfolio has exposure to 45 hotel and accommodation assets with a weighted average cap rate (WACR) of 6.1%, while the weighted average lease expiry (WALE) is currently around 11.4 years and occupancy is 100%.

The Hold rating is maintained. The target price is increased to $3.15 from $3.10.

Sector: Real Estate.

Target price is $3.15.Current Price is $3.02. Difference: $0.13 – (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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