K-Reit Updated Target Price following Q3 2010 result release

K-Reit Updated Target Price following Q3 2010 result release.

Brokerage	Recommendation	Target Price (S$)	Date
DBS Vickers	HOLD	1.32	15/04/11
CIMB	NEUTRAL	1.52	15/04/11

 

Latest updates at Stock Target Price.

Related Posts

• K-Reit Q1 2011 Quarterly Earnings Report

K-Reit Q1 2011 Quarterly Earnings Report

K-Reit Q1 2011 Quarterly Earnings Report:

• Press Release
• Financial Results
• Presentation Slides

Key Points

• DPU of 1.79 cents for the reporting quarter. 
• Annualised 1Q2011 Distribution Per Unit (DPU) increased 34.7% to 7.26 cents.
• Distributable income for 1Q2011 rose 36.1% year-on-year to $24.3 million on account of contributions from newly acquired assets – 50% interest in 275 George Street in Brisbane, the office tower at 77 King Street in Sydney, and the one-third interest in Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall (MBFC Phase One).
• Net property income (NPI) increased 7.6% year-on-year to $$14.9 million as result of contributions from the two Australian assets, offset by the divestment of Keppel Towers & GE Tower.
• Singapore property portfolio committed occupancy rose to 99.0% as at end-March 2011 from 98.7% as at end-December 2010, and is higher than Singapore core CBD occupancy of 94.4%.
• Gearing as at end-March 2011 increased marginally to 37.4%, from 37.0% as at end-2010.
• NAV per unit was $1.49 as at 31 Mar 2011.

Author's Note
There will be no distribution for this quarter as the Reit has a semi-annual distribution policy.

The DPU was 1.71 cents in the previous quarter.

Related Posts

• K-Reit Q4 2010 Quarterly Earnings Report
• K-Reit Q3 2010 Quarterly Earnings Report 
• DPU History 
• Results Release

K-Reit, CRCT - Date of Result Release for Q1 2011

Updated date of Result Release for Q1 2011:

K-Reit APR 14

CRCT APR 15 (AM)

Latest Update at Results Release.

K-REIT PROPOSED ACQUISITION OF FOUR LEVELS OF STRATA OFFICE (LEVEL 26-29) AT PRUDENTIAL TOWER

PROPOSED ACQUISITION OF FOUR LEVELS OF STRATA OFFICE (LEVEL 26-29) AT PRUDENTIAL TOWER:

• Press Release
• Announcement

Key Points

• The Reit has entered into a sale and purchase agreement with the following parties for the acquisition of the following levels in the building located at the Prudential Tower:
• Innisvale Investments Pte Ltd in respect of Level 26;
• Maraha Pte Ltd in respect of Level 27;
• Lima Bintang Holdings Pte Ltd in respect of Level 28; and
• Mirabeau Gardens Pte Ltd in respect of Level 29.
• Vendors will provide rental support of up to S$8.09 million, for the period commencing from the date of completion of the Acquisition until 31 March 2015.
• The Property consists of four (4) strata office floors totalling 48,158 square feet (“sf”) which represents 19.4% of the strata value of the building. K-REIT Asia currently owns 73.4% of the strata value of the building. Post-completion of the Acquisition, K-REIT Asia will own 92.8% of the strata value of the building.
• The aggregate purchase consideration of the Property is S$125,113,940.00.
• The Acquisition will be entirely funded by debt. K-REIT Asia’s aggregate leverage (calculated as gross borrowings divided by total deposited property value) is expected to increase marginally from 37.0% to 39.3% after the completion of the Acquisition.

Related Posts

• K-Reit completes acquisition of 77 King Street 
• K-Reit completes acquisition of a one-third interest in MBFC Towers 1 & 2 and Marina Bay Link Mall - 15 DEC 2010

K-Reit Q4 2010 Quarterly Earnings Report

K-Reit Q4 2010 Quarterly Earnings Report:

• Press Release
• Financial Results
• Presentation Slides

Key Points

• DPU of 1.71 cents for the reporting quarter.
• Unitholders can look forward to a DPU of 3.38 cents for 2H 2010 which will be paid on 25 February 2011.
• Portfolio occupancy rate stood at 97.0% as at end 4Q 2010 compared with 99.2% as at the end of 3Q 2010. The decline in average occupancy was due mainly to the inclusion of 77 King Street office tower and MBFC Phase 1 which were 76.7% and 96.6% occupied respectively as at 31 December 2010. Both assets are newly completed, and are in the process of being leased.
• To finance the recent acquisition of MBFC Phase 1, the Manager raised total borrowings to $1.3 billion as at 31 December 2010 or an aggregate leverage of 37.0%.

Author's Note
The semi-annual DPU of 3.38 cents will be paid on 25 Feb 2011. Book closure is on 28 Jan 2011. DPU for the current quarter is 1.71 cents.

The DPU was 1.69 cents in the previous quarter.

Related Posts

• K-Reit Q3 2010 Quarterly Earnings Report
• Results Release 
• DPU Information Page
•  

K-Reit, Plife, CCT, MapletreeLog - Date of Result Release for Q4 2010

Updated date of Result Release for Q4 2010:
K-Reit   JAN 20  
Plife   JAN 24
CCT JAN 19 (AM)
MapletreeLog JAN 20

Latest Update at Results Release.

K-Reit completes acquisition of 77 King Street

(I) COMPLETION OF ACQUISITION OF 77 KING STREET
(II) USE OF PROCEEDS FROM THE NOV 2009 RIGHTS ISSUE 

• Press Release

Key Points

• Further to the announcement dated 19 July 2010 in relation to the acquisition of 100% interest in Lots 1, 3, 4 and 5, 77 King Street, Sydney, Australia (the “Acquisition”), the Acquisition has been completed.
• The Acquisition was financed with S$19.4 million from K-REIT Asia’s rights issue in November 2009 (the “Rights Issue”) and additional borrowings. 
• Such use of proceeds of the Rights Issue is in accordance with the stated use and the percentage of the proceeds allocated to such use.
• As at the date of this announcement, the Manager has disbursed all the proceeds from the Rights Issue.

Related Posts

• REIT Financial News - 19 JUL 2010: K-REIT - ACQUISITION OF THE OFFICE TOWER AT 77 KING STREET, SYDNEY, AUSTRALIA

K-Reit completes acquisition of a one-third interest in MBFC Towers 1 & 2 and Marina Bay Link Mall - 15 DEC 2010

i) Completion of acquisition of a one-third interest in Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall and divestment of Keppel Towers and GE Tower;
ii) Use of proceeds from K-Reit Asia’s November 2009 rights issue.

• Press Release

Key Points

• The acquisition of a one-third interest in Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall (including the assignment to K-REIT Asia of the loan made by Bayfront Development Pte. Ltd. to BFC Development Pte. Ltd.) (“BFC”) (the “MBFC Acquisition”) and the divestment of Keppel Towers and GE Tower (the “KTGE Divestment”, together with the MBFC Acquisition, the “Transactions”) has been completed on 15 DEC 2010.
• In relation to the use of proceeds from K-REIT Asia’s rights issue in November 2009 (the “Rights Issue”), the board of directors of the Manager, wishes to announce that to-date, out of the net proceeds of approximately S$616.0 million from the Rights Issue less the utilisation of approximately S$555.1 million made prior to this announcement, S$41.5 million has been used to partly finance the MBFC Acquisition.

Related Posts

• K-Reit's proposed acquisition of a one-third stake in MBFC phase 1 and proposed divestment of KTGE - 11 OCT 2010

Singapore commercial property rents to rise 15-20% next year: CBRE

Singapore commercial property rents to rise 15-20% next year: CBRE:

Source of News

Singapore's commercial property sector will likely see a 15-20 per cent increase in rental values next year, after a 22 per cent growth this year, according to CBRE.

This will be driven by strong occupier demand for office space in Singapore despite plenty of supply coming on stream.

CBRE points to the Marina Bay Financial Centre (MBFC) as one example of strong demand. The first phase of MBFC was fully let out by the time its doors opened this year.

The property consultant said the supply pipeline is reasonable next year, with over 5 million square feet of office space currently under construction in the central business district. Half of the supply has already found tenants.

"From a relative standpoint, Singapore is quite competitive in terms of office occupation costs... Hong Kong office space is commanding almost double the rents Singapore is currently set at, so I think there is room for rental growth in Singapore, without it becoming uncompetitive," said Moray Armstrong, Executive Director, Office Services, CBRE.

Related Posts

• K-Reit's proposed acquisition of a one-third stake in MBFC phase 1 and proposed divestment of KTGE - 11 OCT 2010 
• SUNTEC Reit completes acquisition of a one-third interest in MBFC Towers 1 and 2, and the Marina bay Link Mall - 9 DEC 2010
• SUNTEC Reit proposed acquisition of a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall - 26 OCT 2010

K-Reit Updated Target Price

K-Reit Updated Target Price:

CIMB

UNDERPERFORM

1.43

19/10/10

Latest updates at Stock Target Price.

Related Posts

• K-Reit's proposed acquisition of a one-third stake in MBFC phase 1 and proposed divestment of KTGE - 11 OCT 2010

K-Reit - Updated Target Price following Q3 2010 result release

K-Reit Updated Target Price following Q3 2010 result release:

DBS Vickers	HOLD	S$1.20	19/10/10
CIMB	UNDERPERFORM	S$1.26	19/10/10

Latest updates at Stock Target Price.

K-Reit Q3 2010 Quarterly Earnings Report

Q3 2010 results for K-Reit:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• The DPU for the reporting quarter is 1.69 cents.
• Distributable income rose 22.2% year-on-year to $62.5 million due mainly to higher net property income (NPI) and lower interest expense.
• NPI increased 40.5% year-on-year to $49.8 million due mainly to income contribution from the 50% interest in 275 George Street and additional 29% interest in Prudential Tower.
• Distribution Per Unit (DPU) for January to September 2010 amounted to 4.65 cents.
• Singapore property portfolio committed occupancy of 99.1% as at 30 September 2010 is higher than Singapore core CBD occupancy of 95.2%.

Author's Note
The DPU for the reporting quarter is 1.69 cents. There will not be any distribution this quarter as the reit has a semi-annual distribution policy. DPU was 1.64 cents for the previous quarter.

K-Reit's proposed acquisition of a one-third stake in MBFC phase 1 and proposed divestment of KTGE - 11 OCT 2010

Proposed acquisition of a one-third stake in MBFC phase 1 and proposed divestment of KTGE. See:

• Press release and Presentation Slides
• Report

Key Points

•  
• K-REIT Asia has entered into a conditional share purchase agreement with Bayfront Development Pte. Ltd., a wholly-owned subsidiary of Keppel Land Limited (Keppel Land), for the acquisition of a one-third interest in Phase One of Marina Bay Financial Centre (MBFC Phase One) at an agreed value of approximately S$1,426.8 million (inclusive of rental support).
• At the same time, as part of the asset swap, K-REIT Asia has signed a conditional sale and purchase agreement with Mansfield Developments Pte Ltd, a wholly-owned subsidiary of Keppel Land, for the divestment of Keppel Towers and GE Tower (KTGE) at an agreed value of S$573.0 million, which is above the valuation of S$540.7 million as at 31 December 2009, according to a Keppel Land report.
• MBFC Phase One comprises two office towers, Marina Bay Financial Centre Towers 1 & 2, with a total net lettable area (NLA) of about 1.65 million sf, Marina Bay Link Mall with a retail NLA of about 94,500 sf and 684 carpark spaces. Fully committed, major tenants at MBFC Towers 1 & 2 include Standard Chartered Bank, Barclays Capital, BHP Billiton, Nomura, Macquarie, American Express and Prudential.
• After the asset swap, K-REIT Asia's portfolio asset size will increase from S$2.5 billion to approximately S$3.4 billion. The asset swap is expected to be completed no later than 31 December 2010.
• The acquisition of the one-third interest in MBFC Phase One will be funded by a combination of the sale proceeds from the divestment of KTGE, new borrowings and part of the proceeds from K-REIT Asia's November 2009 rights issue.

Date of Result Release for Q3 2010 for K-Reit

Updated date of Result Release for Q3 2010:
K-Reit   Oct 18

Latest Update at Results Release.

Stock Target Price - Updated Target Price for K-Reit following its 2Q 2010 and Announcement of Acquisition

Updated Target Price for K-Reit following its 2Q 2010 Earnings Results and
Announcement of Acquisition of Australian property:

DBS Vickers	HOLD	S$1.20	20/07/10
CIMB	NEUTRAL	S$1.21	20/07/10

Latest updates at Stock Target Price.

REIT Financial News - 19 JUL 2010: K-REIT - ACQUISITION OF THE OFFICE TOWER AT 77 KING STREET, SYDNEY, AUSTRALIA

ACQUISITION OF THE OFFICE TOWER AT 77 KING STREET, SYDNEY, AUSTRALIA. See:

• Announcement

Key Points

• the Reit has entered into a contract with Kingvest Pty Limited for the acquisition of a 100% interest in Lots 1, 3, 4 and 5, 77 King Street, Sydney, Australia.
• 77 King Street is a prime commercial building located in the heart of Sydney’s Central Business District (“CBD”), in close proximity to major CityRail Stations – Wynyard, Martin Place and Town Hall Stations. It has a net lettable area of 170,662 sq ft across 18 levels of Grade A office space and five levels of quality retail space.
• The purchase consideration of the Property is A$120.0 million or approximately S$145.0 million.
• An independent property valuer commissioned by K-REIT Australia to value the Property has valued it at A$120.0 million in the valuation report dated 16 July 2010.
• The FY 2009 pro forma net profit attributable to the Acquisition is approximately A$3.1 million (approximately S$3.7 million ).
• Pro Forma Net Asset Value (“NAV”) will remain the same at S$1.47 before and after the acquisition.
• Pro Forma Distribution per Unit will increase from 5.28 to 5.63 cents after the acquisition based on K-REIT Asia’s DPU for FY 2009, and as if K-REIT Asia had completed the Acquisition on 1 January 2009.
• The Acquisition will be funded by a combination of debt and equity with the proceeds from the rights issue completed by K-REIT Asia in November 2009. 
• K-REIT Asia’s aggregate leverage is expected to increase from 15.2% to 20.4% after the completion of the Acquisition.

Author's Note
Once acquired, this will be the second property of K-Reit in Australia. The last acquisition was a commercial property in Brisbane, Australia. See K-REIT ACQUISITION OF 50% INTEREST IN PRIME COMMERCIAL BUILDING IN BRISBANE, AUSTRALIA.

REIT Financial News - Q2 2010 Quarterly Earnings Report for K-Reit

Second quarter 2010 results for K-Reit:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• The DPU for the quarter (2Q 2010) was 1.64 cents. 
• Total DPU for 1H 2010 was 2.97 cents.
• Distributable income rose by 20.0% year‐on‐year to $39.8 million due mainly to higher net property income (“NPI”) and lower interest expense.
• NPI increased 39.5% year‐on‐year to $32.3 million due mainly to contribution from the 50% interest in 275 George Street and the additional 29% interest in Prudential Tower. 
• Distribution Per Unit (“DPU”) for January to June 2010 amounted to 2.97 cents.
• 97.9% portfolio committed occupancy as at 30 June 2010 was higher than Singapore Core CBD occupancy of 93.3%.
• Aggregate leverage level as at 30 June 2010 post debt repayment of $230 million was 15.2%.
• The  Transfer  Books  and  Register  of  Unitholders will be closed at 5.00 pm on 28 July 2010 for the purpose of determining unitholders’ entitlements to distribution. 
• The distribution that will be paid on 26 Aug 2010.

Author's Note
The semi-annual DPU of 2.97 cents, which includes the DPU of 1.33 cents for Q1 2010 and 1.64 cents for Q2 2010, will be paid on 26 Aug 2010.

REIT Financial News - Date of Result Release for Q2 2010 for K-Reit

Updated date of Result Release for Q2 2010:
K-Reit   Jul 19


Latest Update at Results Release.

Stock Target Price - Updated Target Price for Office Reits by CIMB

Updated Target Price Office Reits by CIMB:

SUNTEC OUTPERFORM S$1.60
CCT OUTPERFORM S$1.37
Kreit UNDERPERFORM S$1.01

Latest updates at Stock Target Price.

REIT Financial News - 31 MAY 2010: Singapore office property market picking up, says expert

Source

Singapore's office property market is picking up, according to brokerage firm Nomura.

It noted that office rentals in Singapore are bottoming out amid stronger-than-expected demand, prompting tenants to commit sooner than expected.

Nomura said a reduction in occupancy costs and the desire to secure contiguous expansion or better quality space has prompted pre-commitments.

Given such stronger demand - with 79.9 per cent of this year's supply pre-committed - Nomura said vacancy is likely to be lower than previously forecast.

It has also raised its rental expectations by between 7.9 per cent and 15.4 per cent for International Grade A (IGA) space, and between 5.4 per cent and 10.4 per cent for Grade A space.

On the back of the revisions, Nomura is bullish about the sector and has raised its price targets for office landlords listed here.

Its top picks are Keppel Land, Singapore Land, CapitaCommercial Trust and K-REIT Asia.

It said it's keeping its "buy" rating on Keppel Land and K-REIT Asia as they are most exposed to the IGA office market.

As for Singapore Land and CapitaCommercial Trust, Nomura said valuations for the two firms remain compelling.