• 1H26 DPU of 2.53 cents (stable YoY) was in line with our estimates, forming 41% of our FY26e forecast, with seasonally stronger performance expected in 2H26. Core DPU declined 10% YoY to 2.16 cents due to the timing difference of acquisitions and divestments, income loss from assets undergoing AEIs, foreign exchange effects, and one-off tax adjustments. On a same-store basis, distributable income declined 1% YoY.
• 2Q26 RevPAU declined 2% YoY to S$156 due to downtime from properties undergoing AEIs in key markets. On a same-store basis, RevPAU increased 1% YoY, supported by a 1ppt YoY improvement in portfolio occupancy to 79%.
• Maintain BUY with an unchanged DDM-based TP of S$1.08. We maintain our FY26e DPU forecast of 6.1 cents (stable YoY), which incorporates S$26mn of distribution top-ups to offset the income loss from The Cavendish London AEI. We continue to expect low single-digit portfolio RevPAU growth in FY26e, with resilient room rates and growth driven primarily by higher occupancy. Completed AEIs should support long-term portfolio growth, alongside higher contributions from stabilised acquisitions, while The Cavendish London (post-AEI) and Somerset Clarke Quay are expected to contribute a combined 0.16 cents to FY27e DPU, rising to 0.21 cents in FY28e and 0.50 cents in FY29e. The current share price implies an FY26e dividend yield of 6.7%.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
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Overview POP MART is primarily engaged in the design and development of trendy toys. It operates a comprehensive platform covering the entire industry chain of intellectual property (IP) for trendy toys, with businesses including IP incubation and operation, trendy toys and retail, theme park and experiences, and digital entertainment. The company’s products include blind boxes, figurines, ball-jointed dolls (BJD), MEGA, plush toys, and derivatives, among others. Its self-developed products primarily feature artist-owned IPs such as THE MONSTERS, MOLLY, SKULLPANDA, and...
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