A rise of 12% for underlying rental income (compared to the previous corresponding period) offset higher interest costs in the 1H, explains Morgans.

Hotel Property Investments maintained 18.4cpu dividend guidance for FY23. Hotel occupancy is 100% and the weighted average lease expiry (WALE) is 10 years. An interim distribution of 9.2cpu was declared.

The broker raise its target to $3.76 from $3.68. Add. 

Sector: Real Estate.

Target price is $3.76.Current Price is $3.59. Difference: $0.17 - (brackets indicate current price is over target). If HPI meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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