REIT Financial News - Date of Result Release for Q1 2010 for AIMS AMPCI REIT

Updated date of Result Release for Q1 2010:
AIMS AMPCI REIT May 12

Latest Update at Results Release.

Stock Target Price - Updated Target Price for Ascott Reit by OCBC following Q1 2010 results

Updated Target Price and Recommendation for Ascott Reit following release of Q1 2010 results:

OCBC BUY S$1.32
Latest updates at Stock Target Price.

REIT Financial News - 30 APR 2010: Quarterly Earnings Report for Ascott Reit

First quarter 2010 results for Ascott Reit:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• DPU of 1.66 cents for the quarter.
• Unitholders' distribution is S$10.3 million.
• The Reit achieved revenue of S$43.5 million and gross profit of S$20.1 million for the period January to 31 March 2010, which are respectively 3 percent and 1 percent higher than the same period last year.
• Increase in revenue is mainly led by better performance in Philippines, Singapore and China, with revenue per available unit (RevPAU) growth of 8 percent, 7 percent and 1 percent respectively in 1Q 2010 compared to 1Q 2009.
• The Reit has accelerated asset enhancement initiatives to enhance the long term returns of selected properties in Singapore, China and Vietnam.

Author's Note
There will be no distribution payment this quarter as Ascott Reit distributes semi-annually. The DPU of 1.66 cents will be paid in the next quarter together with the DPU for the next quarter.


Based on the lastest closing price of the Reit of $1.17 on 29 April 2010, the DPU of 1.66 cents translates to an annualised yield of about 5.68%.

DPU for the previous quarter was 1.87 cents.
 
Latest updates at Results Release.

Stock Target Price - Updated Target Price for SUNTEC Reit by Phillips following Q1 2010 results

Updated Target Price and Recommendation for SUNTEC Reit following release of Q1 2010 results:

Phillips Securities HOLD S$1.34

Latest updates at Stock Target Price.

REIT Financial News - 28 APR 2010: Raffles Place hasn't lost lustre as business district: CCT

Raffles Place hasn't lost lustre as business district: CapitaCommercial Trust
See news.

Key Points

• CCT believes that Raffles Place has not lost its attraction as a business district.  
• The new Marina Bay Financial Centre has been attracting many financial institutions to relocate from the Central Business District. But existing tenants are making use of that to potentially expand their offices located in CCT's buildings such as Capital Tower and One George Street.
• CCT said it is also reviewing its plans for StarHub Centre. It is looking to allocate up to 80 per cent of Starhub Centre's gross floor area for residential use, while the rest will remain for commercial purposes.
• The trust said going forward, the office market is bottoming out and remains confident of the overall office market.
• There are encouraging signs that the office demand has recovered and office market rentals may have reached a bottom. However, there is still 4.5 million square feet of new office space coming onstream in the next two years that is largely uncommitted.

Author's Note
The above were revealed on the sidelines of the CCT's AGM on Apr 28. Another piece of news that is injecting confidence into the office market. If the office market really bottoms out, office Reits like CCT and K-Reit will be the main beneficiaries.

Related article:
REIT Financial News - 5 APR 2010: S'pore offices attractive due to cheaper rents

Stock Target Price - Updated Target Price for SUNTEC Reit following Q1 2010 results

Updated Target Price and Recommendation for SUNTEC Reit following release of Q1 2010 results:

DBS BUY S$1.47
DMG BUY S$1.56
CIMB OUTPERFORM  S$1.59

Latest updates at Stock Target Price.

REIT Financial News - Date of Result Release for Q1 2010 for Saizen Reit

Updated date of Result Release for Q1 2010:
Saizen Reit   May 12



Latest Update at Results Release.

REIT Financial News - 27 APR 2010: Quarterly Earnings Report for SUNTEC Reit

First quarter 2010 results for SUNTEC Reit:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Suntec REIT achieved Distribution Income of S$45.37m for 1Q FY10.
• DPU of 2.513 cents for the quarter.
• For 1Q FY10, Suntec REIT achieved gross revenue of S$62.5 million, and net property income of S$47.8 million. 
• The income available for distribution of S$45.4 million was 2.1% lower year-on-year.
• Gross office revenue achieved for the quarter was S$29.3 million, comprising Suntec City office revenue of S$27.1 million and Park Mall office revenue of S$2.2 million. 
• As at 31 March 2010, the committed occupancy for the overall office portfolio strengthened further to 96.9%.
• Gross retail revenue achieved for the quarter was S$33.1 million, comprising Suntec City retail revenue of S$26.8 million and revenue from Park Mall and Chijmes of S$6.3 million.
• As at 31 March 2010, the committed occupancy for the retail portfolio stood at 97.2%.

Author's Note
The DPU of 2.513 cents will XD on 3 May 2010 and will be paid on 27 May 2010. The DPU for the previous quarter was 2.886 cents.


Based on the lastest closing price of the Reit of $1.38 on 27 April 2010, the DPU of 2.513 cents translates to an annualised yield of about 7.28%.
 
Latest updates at Results Release.

REIT Financial News - 26 APR 2010: Quarterly Earnings Report for Starhill Global

First quarter 2010 results for Starhill Global:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• 1Q 2010 income to be distributed was S$18.4 million, 2.0% higher than that of S$18.0 million in 1Q 2009.
• DPU for the period 1 January to 31 March 2010 is 0.95 cents.
• Gross revenue in 1Q 2010 was S$37.6 million, 9.6% higher than that achieved in 1Q 2009. 
• Net property income was higher at S$29.1 million, an increase of 7.7% over 1Q 2009, mainly attributed to contribution from the newly acquired David Jones Building in Australia, partially offset by weaker performance from the Japan properties.
• Outstanding debt was S$702.3 million as of 31 March 2010, of which S$570.0 million or 81.2% matures in September 2010.
• As of 1Q 2010, gearing is at 29.3% and its interest cover ratio stands at a
  4.6 times. 
• Moody’s and Standard & Poor’s have accorded Starhill Global REIT corporate family ratings of Baa2 and BBB respectively.
• Committed occupancy for the quarter:
• Singapore retail space was 99.3%.
• 100% occupancy for the Chinese property.
• 100% occupancy for the Australian property.
• Overall occupancy for the seven Japanese properties was 88.6%.

Author's Note
The DPU of 0.95 cents will XD on 3 May 2010 and will be paid on 27 May 2010. The DPU for the previous quarter was 0.97 cents.


Based on the lastest closing price of the Reit of $0.64 on 26 April 2010, the DPU of 0.95 cents translates to an annualised yield of about 5.94%.
 
Latest updates at Results Release.

Stock Target Price - Updated Target Price for FCT by DMG following Q1 2010 results

Updated Target Price and Recommendation for Frasers Centrepoint Trust following release of Q1 2010 results:


DMG BUY S$1.66

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for Frasers Comm by Phillips Securities following Q1 2010 results

Updated Target Price and Recommendation for Frasers Commercial Trust following release of Q1 2010 results:


Phillips Securities BUY S$0.180


Latest updates at Stock Target Price.

REIT Financial News - 23 APR 2010: Quarterly Earnings Report for CRCT

First quarter 2010 results for Capita Retail China Trust:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Net property income of RMB93.9 million, resulting in income available for
  distribution of S$13.3 million for 1Q 2010. 
• The DPU for the quarter is 2.14 Singapore cents.
• Gross revenue for 1Q 2010 was S$29.5 million, 2.9% or S$0.9 million lower than 1Q 2009. This is largely due to a 6.2% depreciation of RMB against SGD in 1Q 2010 from 1Q 2009. 
• NPI grew slightly by 1.2% or S$0.2 million year-on-year.

Author's Note
The DPU of 2.14 cents will be paid together with the DPU for the next quarter as CRCT has a semi-annual distribution policy.

Based on the last closing price of the Reit of $1.24 on 23 April 2010, the DPU of 2.14 cents translates to an annualised yield of about 6.9%.

REIT Financial News - 23 APR 2010: Quarterly Earnings Report for Frasers Centrepoint Trust

First quarter 2010 results for Frasers Centrepoint Trust:

• Press Release  
• Financial Statements 
• Presentation Slides

 Key Points

• FCT's 2Q10 DPU rose 11% y-on-y to 2.06 cents.
• Record 2Q10 income available for distribution of $15.9 million, which represents an increase of 31% from the same period last year.
• Achieved record quarterly gross revenue and net property income of $28.3 million and $20.4 million respectively this quarter.
• Successfully acquired Northpoint 2 & YewTee Point on 5 February 2010, with total assets growing 26% to $1.5 billion as a result.
• Gearing at a conservative 31.4% level as at 31 March 2010.
• FCT maintained strong operational momentum with portfolio occupancy rising to 99% as the existing and the newly acquired malls registered full or close to full occupancy as at 31 March 2010.

Author's Note
The DPU of 2.06 cents will be paid on 27 May 2010. Book closure is on 3 May 2010. The DPU for the previous quarter was 1.91 cents.

Based on the last closing price of the Reit of $1.38 on 23 April 2010, the DPU of 2.06 cents translates to an annualised yield of 5.97%.

Stock Target Price - Updated Target Price for Frasers Comm by DBS following Q1 2010 results

Updated Target Price and Recommendation for Frasers Commercial Trust following release of Q1 2010 results:


DBS HOLD S$0.160


Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for MapleTree Logistics following Q1 2010 results

Updated Target Price and Recommendation for MapleTree Logistics Trust following release of Q1 2010 results:


OCBC    BUY    S$0.93
DBS Vickers    BUY    S$0.93
CIMB    NEUTRAL    S$0.86

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for Cambridge by Phillips Securities, DMG following Q1 2010 results

Updated Target Price and Recommendation for Cambridge Industrial Trust following release of Q1 2010 results:

Phillips Securities HOLD S$0.51
DMG BUY S$0.64


Latest updates at Stock Target Price.

REIT Financial News - 23 APR 2010: Quarterly Earnings Report for First Reit

First quarter 2010 results for First Reit:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• First REIT's 1Q 2010 distributable income up 1.3% to S$5.2 million.
• DPU up 1.1% to 1.90 cents per unit on year.
• On track to acquire yield-accretive assets from second half of FY2010.
• Gross revenue increased by 0.6% on year to S$7.5 million.
• Net property income rose marginally by 0.3% to S$7.3 million.

Author's Note

The DPU of 1.9 cents will XD on 29 Apr 2010 and will be paid on 27 May 2010. Book closure is on 3 May 2010. The DPU for the previous quarter was 1.92 cents.

Based on the last closing price of the Reit of $0.865 on 22 April 2010, the DPU of 1.9 cents translates to an annualised yield of 8.79%.

The manager reiterated the EXPANSION OF MANAGER'S INVESTMENT POLICY IN FIRST REIT in Mar 2010, which expanded its investment policy to include, but not limited to, hospitals, nursing homes, medical clinics, pharmacies, laboratories, diagnostic/imaging facilities and real estate and/or real estate-related assets used in connection with healthcare research, education, lifestyle and wellness management, manufacture, distribution or storage of pharmaceuticals, drugs, medicine and other healthcare goods and devices. This broader mandate may give the Reit more options when looking for suitable yield-accretive acquisitions.

REIT Financial News - 22 APR 2010: Quarterly Earnings Report for Frasers Comm

First quarter 2010 results for Frasers Commercial Trust:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• FCOT achieves an 82% increase in distributable income for 2Q DPU up 78%; total distributable income (including CPPU) up 167%.
• Total distributable income was up by 167% year-on-year from S$5.42 million to S$14.48 million, of which S$4.65 million is available for distribution to Series A Convertible Perpetual Preferred Units (CPPU) holders.
• Distributable income to Unitholders increased by 82% to S$9.84 million.
• DPU of 0.32 cents, up by 78% from a year earlier and by 33% when compared to the preceding quarter.

Author's Note
Including the DPU of 0.24 cents in the previous quarter, the total DPU of 0.56 cents will XD on 29 Apr 2010 and will be paid on 27 May 2010.

Based on the last closing price of the Reit of $0.14 on 22 April 2010, the semi-annual 0.56 cents translates to an annualised yield of 8.0%. The latest quarterly DPU of 0.32 cents translates to an annualised yield of 9.14%.

REIT Financial News - 22 APR 2010: Quarterly Earnings Report for MapleTree Logistics

First quarter 2010 results for MapleTree Logistics Trust:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Amount distributable for 1Q 2010 rises by 8% year on year. 
• Improvement largely due to lower property expenses and decrease in borrowing costs as a result of proactive capital management to reduce interest costs and lower leverage for most of 1Q 2010 compared to 1Q 2009.
• Available DPU of 1.50 cents for 1Q 2010 is 2% higher than 1Q 2009’s DPU of 1.47 cents.
• Completed two acquisitions during the quarter - one each in Japan and Singapore.
• Key changes in senior management effective 1 May 2010.
• As at 31 March 2010, the Trust’s portfolio comprises 84 properties, with a book value of approximately S$3.0 billion. Of the 84 properties, 49 are in Singapore, 11 in Malaysia, 9 in Japan, 8 in Hong Kong, 6 in China, and 1 in South Korea.
• The average occupancy rate of MapletreeLog’s portfolio remained steady at around 98% as at 31 March 2010.
• As at 31 March 2010 the leverage ratio is 38.6%.

Author's Note
The DPU of 1.5 cents will XD on 28 Apr 2010, and will be paid on 27 May 2010.

The DPU was 1.59 cents in the previous quarter. Excluding a 0.11 cents one-off contribution from Prima Limited (to extend the leases and licenses at 201 Keppel Road), the DPU for 4Q 2009 would have been 1.48 cents.

Annualized yield based on the latest 1.5 cents DPU and closing price on 22 APR 2010 of $0.875 is (1.5*4)/87.5 = 6.857%

Stock Target Price - Updated Target Price for Cambridge by DBS following Q1 2010 results

Updated Target Price and Recommendation for Cambridge Industrial Trust following release of Q1 2010 results:

DBS BUY S$0.54


Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for CMT by DBS, KIM ENG following Q1 2010 results

Updated Target Price and Recommendation for CMT following release of Q1 2010 results:

DBS BUY S$2.02
KIM ENG BUY S$2.23

Latest updates at Stock Target Price.

REIT Financial News - 21 APR 2010: Quarterly Earnings Report for Cambridge

First quarter 2010 results for Cambridge:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• CIT distributes a DPU of 1.274 cents per unit for 1Q2010.
• Near full occupancy rate of 99.9% in 1Q2010, as compared with Singapore’s industrial average of 91.9%.
• Total distributable income attributable to Unitholders in 1Q2010 was S$11.1 million.
• Completion of the divestments of 32 strata units at 48 Toh Guan East Road with total gross sale proceeds of S$21.5 million, exceeding book value by S$1.6 million.
• The first Distribution Reinvestment Plan offered to Unitholders in relation to the 4Q2009 distribution received a take-up rate of approximately 10%.  
• As of 31 March 2010, CIT has a portfolio of 42 properties with about 639,800 sq m of lettable area and a carrying value of S$854.5 million.
  

Author's Note
The DPU of 1.274 cents will XD on 27 Apr 2010, and will be paid on 15 Jun 2010.

The DPU was 1.377 cents in the previous quarter.

REIT Financial News - 21 APR 2010: Quarterly Earnings Report for CMT

First quarter 2010 results for CMT:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• DPU of 2.231 cents for 1Q 2010. This is 13.2% higher than the DPU of 1.97 cents for the same period in 2009.
• First quarter distributable income rose 13.6 per cent on-year to S$71.1 million dollars
• Net property income gained 5.7 per cent to S$97.6 million dollars.
• Secured the approval of close to 100% of the Unitholders who voted for the acquisition of Clarke Quay at the recent EGM. Upon completion of the yield-accretive acquisition, it will enlarge CMT’s asset size to approximately S$7.8 billion from S$7.5 billion as at 31 March 2010. 
• Asset enhancement works at Jurong Entertainment Centre began in 4Q 2009. The new larger mall is on track to be completed in early 2012.
• Construction of a new 2-storey food and beverage annex block in Junction 8 which will bring in a net lettable area of about 3,500 square feet. 
• Will reconfigure some retail units and relocate an existing taxi stand in Tampines Mall.

Author's Note
The DPU of 2.231 cents will XD on 27 Apr 2010, and will be paid on 27 May 2010.

The DPU was 2.4 cents in the previous quarter.

Stock Target Price - Updated Target Price for CMT by DMG, CIMB following Q1 2010 results

Updated Target Price and Recommendation for CMT following release of Q1 2010 results:

CIMB NEUTRAL S$1.93
DMG NEUTRAL S$1.90

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for K-REIT by DBS following Q1 2010 results

Updated Target Price and Recommendation for K-REIT following release of Q1 2010 results:
DBS HOLD S$1.17

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for A-REIT following Q1 2010 results

Updated Target Price and Recommendation for A-REIT following release of Q1 2010 results:
DBS HOLD S$2.11
OCBC HOLD S$1.85
CIMB NEUTRAL S$2.02
KIM ENG BUY S$2.32


Latest updates at Stock Target Price.

REIT Financial News - Date of Result Release for Q1 2010 for Suntec Reit

Updated date of Result Release for Q1 2010:
Suntec Reit   Apr 27



Latest Update at Results Release.

REIT Financial News - 20 APR 2010: Fortune Reit starts trading in SEHK

Dual primary listing on the main board of the Stock Exchange of Hong Kong limited (the SEHK) – approval of the SEHK and listing of units on the SEHK. See report.

Key Points

• SEHK had on 19 April 2010, provided their formal and final approval for the listing of, and permission to deal in, the Units (of Fortune Reit) on the SEHK.
• Trading of the Units on the SEHK will commence at 10.00 a.m. (Hong Kong time) today, 20 April 2010.

Author's Note
The long awaited dual listing of Fortune Reit has finally been realized. In the first half of the trading day, the Reit (in SGX) hits a new 52 weeks intraday high of HKD 3.960, before closing at HKD 3.830 in the first half of the trading day.

REIT Financial News - 19 APR 2010: Quarterly Earnings Report for K-REIT

First quarter 2010 results for K-REIT:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Net property income increased 28.4% year-on-year to $13.9 million, due mainly to higher rental income.
• Distributable income rose by 13.8% year-on-year due mainly to higher net property income and contribution from One Raffles Quay Pte Ltd. 
• DPU for January to March 2010 amounted to 1.33 cents.
• Portfolio committed occupancy of 96.0% as at 31 March 2010 is higher than Core CBD occupancy of 91.9%. 
• Aggregate leverage lowered to 25.2% as at 31 March 2010 on enlarged asset base. 
• Acquisition of 275 George Street in Brisbane, Australia enlarged portfolio asset size to $2.3 billion and net lettable area to 1.5 million square feet.

Author's Note
There will be no distribution payment this quarter as K-Reit distributes semi-annually. The DPU of 1.33 cents will be paid in the next quarter together with the DPU for the next quarter.

Base on the latest closing price of 1.130 for K-Reit on Apr 19, the annualized yield for the DPU of 1.33 cents is 4.7%. This is relatively lower than the other office Reits. But the gearing of the Reit is low at 25.2%, and the new Australian property has only contributed 1 month of rental revenue for the quarter. The cash flow statement in the latest quarterly report also shows that the Reit still has about S$340.3 million of cash and cash equivalent mainly from its rights issue last year that has yet to be deployed.

REIT Financial News - 19 APR 2010: Quarterly Earnings Report for A-REIT

First quarter 2010 results for A-REIT:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Distributable income of S$234.9 million is 11.4% higher year-on-year.
• 13.7% yoy growth over FY2008/09 DPU of 11.76 cents.
• FY2009/10 Net Property Income grew by 7.9% of which 34.6% is contributed organically.
• Positive rental reversion on lease renewals in the sectors of Business & Science Parks, Hi-Tech Industrial as well as Logistics & Distribution Centres.
• Distribution of 2.73 cents per unit for the period from 1 January 2010 to 31 March 2010.

Author's Note
The DPU of 2.73 cents will XD on 23 Apr 2010, and will be paid on 25 May 2010.
 

REIT Financial News - 19 APR 2010: Completion of sale of Robinson Point by CCT

CapitaCommercial Trust: Completion of sale of Robinson Point. See report.

Author's Note
The sale of Robinson Point was initially announced on 19 Jan 2010:
REIT Financial News - 19 Jan 2010: Sale of Robinson Point

Stock Target Price - Updated Target Price for Starhill Global by DBS following announcement of acquisition plans

Updated Target Price for Starhill Global by DBS following announcement of acquisition plans:

DBS BUY S$0.73

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for CCT by DMG, CIMB, Kim Eng following Q1 2010 results

Updated Target Price and Recommendation for CCT by DMG, CIMB, Kim Eng following release of Q1 2010 results:


DMG NEUTRAL S$1.24
CIMB OUTPERFORM S$1.26
Kim Eng HOLD S$1.10

Latest updates at Stock Target Price.

REIT Financial News - 16 APR 2010: Starhill Global enters into conditional sale and purchase agreements to acquire Starhill Gallery and Lot 10 for S$450.1 million

Starhill Global enters into conditional sale and purchase agreements to acquire Starhill Gallery and Lot 10 for S$450.1 million. See news release and report.

Key Points 

• The Reit has entered into conditional sale and purchase agreements to acquire Starhill REIT's interests in Starhill Gallery and Lot 10 Shopping
  Centre in KL for a total consideration of RM1,030.0 million (approximately S$450.1 million).
• Starhill Gallery will be acquired for RM629.0 million (approximately S$274.9 million) and Lot 10 will be acquired for RM401.0 million (approximately S$175.2 million).
• The acquisitions will be made through a tax efficient asset-backed securitisation (ABS) structure and will be funded by:
• cash payment of RM300.0 million (approximately S$131.1 million) and the issuance of the S$ equivalent of RM405.0 million (approximately S$177.0 million) in convertible preferred units ("CPUs").
• the issuance of RM330.0 million (approximately S$144.2 million) of five-year senior medium term notes ("Senior MTNs")  
• About The CPUs:
• will be classified as equity and therefore, will not result in an increase in Starhill Global REIT’s aggregate leverage.
• conversion price will be fixed at a premium of 30% above the 5-day
  volume weighted average traded price of Starhill Global REIT’s units prior to and including the issue date.
• can only be converted after three years from the date of issuance with a mandatory conversion at the end of seven years from the date of issuance.
• The Properties will be leased to Katagreen Development Sdn Bhd (the "Master Tenant"), a wholly-owned subsidiary of YTL.
• There will be a fixed tenancy term of 3+3+3 years commencing on the completion of the Acquisitions, at the aggregate annual rental of RM72.1 million (approximately S$31.5 million) for the first three-year term, RM77.3 million (approximately S$33.8 million) for the second three-year term and RM82.4 million (approximately S$36.0 million) for the third three-year term.
• The payment obligations of the Master Tenant under the master tenancy agreement will be guaranteed by YTL.
• PRO FORMA DPU:
• Assuming that the Acquisitions were completed on 1 January 2009 and the CPUs were not converted, DPU for FY2009 would have increased by 13.0% or 0.50 cents to 4.36 cents.
• Assuming full conversion of the CPUs on 1 January 2009, FY2009 DPU would have increased by 12.4% or 0.48 cents to 4.34 cents.
• PRO FORMA NAV:
• Assuming the Acquisitions were completed on 31 December 2009 and the CPUs were not converted, the NAV would have increased by 11.0% or 9.0 cents to S$0.91 per unit.
• Assuming full conversion of the CPUs on 31 December 2009, the NAV would have declined marginally by 1.2% or 1.0 cent to S$0.81 per unit.
• Upon completion of the Acquisitions, Starhill Global REIT’s aggregate leverage as at 31 December 2009 would have marginally increased from 26.9% to 29.0%.

Author's Note 
Following the Reit's initial announcement about the acquisitions on Nov 18 2009, the details about the funding has finally been announced.

Although the CPUs have been classified as equity and hence will not increase the gearing, we have to take note of the diluting impact when conversion of the CPUs kicks in after 3 years. Some quick back of the envelope calculations based on the latest closing price of 0.595 on 15 APR 2010, and the pro forma DPU and NAV assuming full conversion of the CPUs:

• Annual DPU = 4.34 cents
• Yield = 0.0434/0.595 = 7.29%
• Discount from NAV = (0.81-0.595)/0.81 = 26.5%
• Gearing = 29%

REIT Financial News - Date of Result Release for Q1 2010 for Ascott Reit

Updated date of Result Release for Q1 2010:
Ascott Reit   Apr 30



Latest Update at Results Release.

Stock Target Price - Updated Target Price for CCT by DBS and OCBC following Q1 2010 results

Updated Target Price and Recommendation for CCT by DBS and OCBC following release of Q1 2010 results:
DBS HOLD S$1.23
OCBC BUY S$1.26


Latest updates at Stock Target Price.

REIT Financial News - 16 APR 2010: Quarterly Earnings Report for CCT

First quarter results for CCT:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Latest Quarterly DPU is 1.93 cents, a year-on-year increase of 19.1% from the 1.62 1 cents achieved in 1Q 2009.
• Higher rental contribution from the Trust’s properties and improved property margins contributed in part to the strong distributable income growth. 
• Gross revenue registered a year-on-year increase of 4.5% to S$101.8 million while net property income increased year-on-year by 11.0% to S$77.6 million.      
• Lower interest expense as a result of reduced borrowings in 1Q 2010
  compared with 1Q 2009 also augmented the growth in the Trust’s distributable income.

Author's Note
There will be no distribution payment this quarter as CCT distributes semi-annually. The DPU of 1.93 cents will be paid in the next quarter together with the DPU for the next quarter.

REIT Financial News - Date of Result Release for Q1 2010 for Plife and LMIR

Updated date of Result Release for Q1 2010:
Plife   May 6
LippoMapleTrustMay   May 6




Latest Update at Results Release.

REIT Financial News - Date of Result Release for Q1 2010 for First Reit

Updated date of Result Release for Q1 2010:
First Reit   Apr 23


Latest Update at Results Release.

REIT Financial News - Date of Result Release for Q1 2010 for CDL-H Trust

Updated date of Result Release for Q1 2010:
CDL H-Trust   Apr 30


Latest Update at Results Release.

Stock Target Price - Target Price and Recommendation for Cache Logistics Trust

Updated Target Price and Recommendation for the newly listed Cache Logistics Trust:
DMG BUY S$0.96-S$1.09
CIMB OUTPERFORM S$1.23


Latest updates at Stock Target Price.

REIT Financial News - Date of Result Release for Q1 2010 for A-REIT and Starhill Global

Updated date of Result Release for Q1 2010:
A-REIT   Apr 19
Starhill Global   Apr 26

Latest Update at Results Release.

Stock Movement - 12 APR 2010: Cache Logistics closes at 0.955 on the first day of trading

Cache Logistics Trust started trading today at 2:00 PM. It opened at 0.995, which is also the intraday high. It closed at 0.955, which is about 8.5% above the IPO price of 0.880. Volume was high with 149,350,000 units changing hands within the half day of trading.


Author's Note
The projected yield for 2010 is 8.7% over the IPO price of 0.880, or DPU of 7.656 cents annually. The closing price of 0.955 means the projected yield is now down to about 8%. The closing price is about 9.7% above the NAV per unit of 0.870. The industrial Reits of similar asset value like AIMSAMPIReit and Cambridge are still trading at discounts to their NAVs per unit (See About a Reit - IPO of Cache Logistics Trust).

All about REIT - Rights Issue Part 2: What happens during a Rights Issue

Previously I have covered some important terms and definition with regards to Rights Issue in All about REIT - Rights Issue Part 1: Terms and Definition. In this article I shall touch on things that happen during a rights issue. The information here is primarily based on the rights issues that took place for the REITs in 2009.

Entitlement to the Rights
Following the announcement of rights issue of a REIT there will be a period of time in which the REIT units will be trading CR (Cum Rights). Unit holders who hold on to the units till the last day of CR will be entitled to the rights. The units will enter the XR (Ex Rights) period after the last day of CR. You are still entitled to the rights if you sell your units from the first day of XR.

Issue of Rights
If you are entitled to the rights, the rights will be credited to your CDP account, usually a few days after the end of CR. The number of rights issued will be based on the ratio of rights issued per unit. A 1 for 1 rights issue means you will get one right per share, and a 1 for 2 rights issue means you will get 1 right for every 2 shares you have. The best way to check whether your entitled rights have been credited into your CDP account will be through the online CDP access. The name of the rights will normally be the name of the parent unit followed by a "R".
Example:
Starhill Global R for rights of Starhill Global Reit.

Rights Issue Circular and Application Form
Now even if you do not actively follow the SGX announcements, you should still get to know that you are entitled to the rights for the units you owned when CDP send you the Circular about the Rights Issue and Application Form to subscribe to the new units. In the application form, the number of rights you have been issued will be stated. You should take note of the important dates mentioned in the circular, especially the dead line to subscribe to the new units, and trading period for the rights.

Decide what to do with the rights
You should make careful decision on what to do with the rights. If you want to subscribe to the new units, you should take note of the deadline for you to do so and try not to miss it. If you want to sell the rights you should take note of the trading period for the rights. Of course you can also sell some of the rights and subscribe to the new units using the remaining rights. Now it will be unwise to totally do nothing about the rights. You will lose out in having your existing units diluted in terms of yield and other per unit financial figures such as NAV per unit.

Trading of Rights
As mentioned above, you should take note of the trading period of the rights if you intend to sell the rights fully or partially. During the trading period, a temporary counter will be created in SGX, and the rights can be sold or bought just like normal shares through your brokerage trading account.The counter name should be the same as the name of the rights in your CDP account.

Sometimes there may be additional counters for trading of odd lots of the rights, which is possible based on certain combination of rights to units ratio. Example, for a 1 for 2 rights issue, every board lot of 1000 units will be issued with 500 rights. So there will normally be an additional counter for trading of rights in board lot of 500 rights. The counter name will usually be the name of the parent unit followed by a "R", and the number of rights per board lot.
Example:
Starhill Global R500 for rights of Starhill Global Reit in board lot of 500 rights.

Subscribing to the New Units
There are 2 possible ways to subscribe to the new units, by application form or by ATM.

As mentioned above, the application form is mailed to the rights owner along with the rights issue circular. To subscribe via the application form, you need to indicate in the form how many new units you wish to subscribe to based on the number of rights you have. If you wish to subscribe to additional new units based on the excess rights, you should also indicate this in the form. For payment you need to use a Cashier's Order or Bank Draft, the amount of which should be the total cost of the new units you are subscribing to, inclusive of the cost of additional units based on excess rights. Note that payment by cheque is not allowed.

Personally I find that subscribing using the application form is highly inconvenient, especially when you have to visit the bank to purchase the Cashier's Order. You must also make sure you mail back the form and Cashier's Order early so as not to miss the dead line. Application by ATM is much more convenient. Similar to the application form, you need to indicate the number of new units you wish to subscribe to and any additional units via excess rights. The cost to subscribe to the new units will be deducted from your bank account, and you will get a receipt indicating the details of the subscription. Note that you should check the circular for the participating banks for subscription via ATM. Although most of the time the 3 local banks (DBS, UOB, OCBC) are included, you should not assume this to be true all the time. I was caught by surprise once when DBS was not included as a participating bank for the rights issue exercise of a company (not a REIT), and it was very near the deadline when I realized it.

Balloting Process for Over Subscription
One or two days after the deadline to subscribe to the new units, the REIT will usually make an announcement in SGX about how many valid subscriptions have been received, as well as the number of subscriptions via excess rights. There will be over subscription when the number of subscriptions via excess rights exceed the actual number of excess rights available. This will bring about a balloting process to allocate the new units subscribed via the excess rights. Those with odd lots of the new units will have priority during the balloting to top it up to full lots. For example, for a 1 for 2 rights issue, someone originally with 1000 units will end up with 500 new units. If this person apply for 500 additional new units via excess rights, the chances of getting it will be higher.

Results of Rights Issue
For new units you have subscribed to based on your rights entitlement, these new units will definitely be allocated to you. For those applied via the excess rights, you will also definitely get them if there is no oversubscription. If there is oversubscription, whether you will get the new units will depend on the balloting process mentioned above. Normally the Rights Issue Circular will indicate the date in which the new units will be credited into the CDP account. You should be able to check whether the new units have been credited into your CDP account online via www.cdp.com.sg one day later.

Refunding for Unsuccessful Subscription
If you have unsuccessfully subscribed for additional new units via excess rights, the amount you have paid for the application will be refunded to your bank account one day to a few days later.

Related Posts

• All about REIT - Rights Issue Part 1: Terms and Definition
• Other articles from All about REIT

REIT Financial News - 9 APR 2010: Cache Logistics Trust Balloting Announcement

Cache Logistics Trust - Balloting Announcement. See report.

Key Points

• The offering of 474,108,000 units in cache logistics trust consists of:
• An international placement of 433,108,000 units to investors, including institutional and other investors in singapore (the "placement")
• An offering of 41,000,000 units to the public in singapore (the "public offer") of which 14,000,000 units (the "reserved units") were reserved for subscription by the directors, management, employees and business associates of CWT Limited, ARA Asset Management limited and their subsidiaries.
• The Placement - Indications of interest were received for 3,134,107,736 Units under the Placement, resulting in the Placement being approximately 7.2 times subscribed based on the 433,108,000 Units available under the Placement.
• The Public Offer - As at the close of the Public Offer at 12.00 p.m. on 8 April 2010, there were 12,729 valid applications for 27,000,000 Units (excluding the 14,000,000 Reserved Units which have been applied for by the Eligible Applicants) available to the public for subscription. In total,
  these applicants applied for 539,189,000 Units. Based on the aforesaid, the Public Offer was approximately 20.0 times subscribed (based on 27,000,000 Units excluding the 14,000,000 Reserved Units).
• Reserved Units - As at the closing date for the Reserved Tranche on 6 April 2010, valid acceptances were received for a total of 14,000,000 Reserved Units.
• Overall the Offering is approximately 7.8 times subscribed.

Author's Note
This is not a bad start for the Reit, which is 7.8 times subscribed overall. The units offered to the Public itself is 20 times subscribed. We shall look at the price movement when the units start to trade coming monday on 12 Apr 2010. The counter code for Cache Logistics Trust is already available at the SGX website: K2LU.

Stock Target Price - Ascott Reit, CDL H-Trust, MapletreeLog, FrasersCT by DBS

Updated Target Price and Recommendation for Ascott Reit, CDL H-Trust, MapletreeLog and FrasersCT by DBS.


Latest updates at Stock Target Price.

REIT Financial News - Date of Result Release for Q1 2010 for CapitaRetailChina

Updated date of Result Release for Q1 2010 for CapitaRetailChina:
CapitaRetailChina   Apr 23


Latest Update at Date of Results Release.

REIT Financial News - Date of Result Release for Q1 2010 for MapleTreeLog

Updated date of Result Release for Q1 2010 for MapleTree Logistics Trust:

MapleTreeLog   Apr 22



Latest Update at Date of Results Release.

REIT Financial News - Date of Result Release for Q1 2010 for CCT, CMT, Cambridge, K-Reit

Updated date of Result Release for Q1 2010 for CCT, CMT, Cambridge, K-Reit.

CCT   Apr 16
K-Reit    Apr 19
Cambridge    Apr 21
CMT    Apr 21

Latest Update at Date of Results Release.

REIT Financial News - 5 APR 2010: S'pore offices attractive due to cheaper rents

S'pore offices attractive due to cheaper rents compared to other financial centres. See news.

Key Points

• Second half of last year, annual average gross rent of an office in Singapore was about S$76 per square foot. Closest competitor, Hong Kong, was priced at S$225 per square foot. 
• Singapore was ranked the 24th most expensive office location, up two notches compared to the previous survey in the first half of last year.
• Singapore's office rents have continued to decrease, but pace of decline has slowed to 6.5 per cent in the second half of last year, compared to 42.3 per cent in the first half of 2009.   
• Colliers International said the Singapore office market is expected to see a modest recovery with up to five percent increase in rents in 2010.

Author's Note
Another piece of news that suggests the bottom of the office market may have been reached.

For the past few weeks there have not been much movement for the office Reits CCT and K-Reit. They have been largely trading in a narrow range around 1.08 to 1.10.

Stock Target Price - Updated TP for Ascendas Reit, CDL H-Trust and Plife

Updated TP for Ascendas Reit, CDL H-Trust and Plife by DMG.

Latest updates at Stock Target Price.

About a Reit - IPO of Cache Logistics Trust

Overview
The Cache Logistics Trust is a Singapore-based REIT which will principally invest in income-producing real estate used for logistics purposes in Asia-Pacific, as well as real estate-related assets. For its IPO, CLT will be offering 474,108,000 Units at the price of S$0.88 per Unit. This will raise about S$417 million for the Trust. The IPO proceeds will be used to fund new properties and as working income. The units are expected to be traded on the SGX on 12 April 2010.

The Sponsor
The sponsor for CLT is CWT, also a listed company in SGX. CLT is granted a right of first refusal by CWT and its substantial shareholder, C&P to acquire logistics properties in the Asia Pacific region owned by or offered to CWT and C&P.

Following is the overview of CWT from its website:
"Being the largest listed logistics company in Southeast Asia, CWT offers integrated logistics solutions to some of the world's leading brands in the chemicals, commodities, automotive, marine, oil & gas, defence and industrial sectors. Through its global network, the CWT Group is able to connect customers to 120 ports and 1,200 destinations seamlessly around the world."

The Manager
CLT is managed by ARA-CWT Trust Management (Cache) Limited, a joint-venture REIT management company 60% owned by ARA and 40% owned by CWT. ARA Asset Management is also listed in SGX. Currently it also manages SUNTEC Reit and Fortune Reit. 

Initial Portfolio
The initial portfolio consists of 6 properties injected by CWT, namely:

• CWT Commodity Hub
• CWT Cold Hub
• Schenker Megahub
• Hi-Speed Logistics Centre
• C&P Changi Districentre
• Changi Districentre 2

The latest valuation of the 6 properties are about S$729.9 million. This is the average of the two valuations conducted by CB Richard Ellis (Pte) Ltd and Knight Frank Pte Ltd.

Comparison with other industrial REITs
Following are the Asset Values of the other industrial REITs listed in SGX:

REIT	Asset Value
A-REIT	S$4765M
MapletreeLog	S$3035M
Cambridge	S$916M
AIMSAMPIReit	S$658M

 
In terms of asset value, CLT is comparable to Cambridge and AIMSAMPIReit.

Gearing
The initial gearing for CLT is 25.9%.

Comparison with other industrial REITs
The following shows the gearing of the other industrial REITs: 

REIT	Gearing
A-REIT	31.20%
MapletreeLog	38.10%
Cambridge	42.60%
AIMSAMPIReit	28.90%

CLT will have the lowest gearing among the industrial REITs. Did not find any mention of corporate rating in the prospectus. If that is so, the gearing limit for CLT will be 35%. It needs a corporate rating to gear up to 60%. All the other industrial REITs have a gearing limit of 60%.

Dividend Yield
As indicated in the prospectus, CLT’s distribution policy is to distribute 100% of its income until 31 December 2011, and at least 90% of its income thereafter. The projected yield based on the IPO price of S$0.88 is 8.70% for 2010 and 8.82% for 2011. 

Comparison with other industrial REITs
Following are the range of the dividend yield of the other industrial REITs in recent weeks:

REIT	Yield
A-REIT	6 – 7%
MapletreeLog	6 – 7%
Cambridge	11 – 12%
AIMSAMPIReit	8 – 9%

From the above, the initial yield for CLT compares favourably with the other industrial REITs. This is especially so if we take gearing into account. The relatively low gearing of CLT means that it has greater flexibility and headroom into funding by debt to increase its DPU and hence the yield. Cambridge Industrial Trust has the highest yield but its gearing is way higher above 40%.

Net Asset Value (NAV)
Based on the Pro Forma balance sheet in pg C-4 of the prospectus, the NAV per unit is S$0.87. The offer price of S$0.88 is almost equal to the NAV per unit.

Comparison with other industrial REITs
Following are the NAV per unit and closing price on 1 Apr 2010 of the other industrial REITs:

REIT	Closing Price on 1/4/10	NAV per unit
A-REIT	1.940	1.580
MapletreeLog	0.850	0.850
Cambridge	0.465	0.600
AIMSAMPIReit	0.215	0.310

Larger REITs like A-REIT and MapletreeLog are trading above or equal to the NAV per unit, while smaller REITs like Cambrige and AIMSAMPIReit are still trading at discount to the NAV per unit. It is hard to tell at this point whether market will pay a premium over the NAV for CLT or otherwise. Based on asset value CLT should belong to the camp of smaller REITs. But it has the advantage of being the lowest in gearing.

Conclusion
Based on the key financial figures and ratio such as yield and gearing, CLT compares well with the other industrial REITs. But we must take note that these comparisons have not looked into the underlying reasons for market to pay a premium or discount to the existing industrial REITs. For example, AIMSAMPIReit has just come out of a big capital restructuring exercise which includes rights issue and change of sponsor and substantial shareholders.

One interesting thing to look out for is the market reaction to the new REIT to be listed after about 2 years. If it is very positive, it may encourage more REITs to be listed. I remember sometime last year it was mentioned in the news that Mapletree may list a commercial REIT which may include Vivocity if the distribution yield of the REITs largely drop to around 5%.

Stock Target Price - OCBC maintains TP for CMT following the US$500m fixed rate notes issue

OCBC maintains TP at S$1.93 and BUY recommendation for CMT following its issue of US$500m 5-year fixed rate notes.

Latest updates at Stock Target Price.

REIT Financial News - 1 APR 2010: Registration of final prospectus for Cache Logistics Trust

ARA ASSET MANAGEMENT: CACHE LOGISTICS TRUST - REGISTRATION OF FINAL PROSPECTUS. See report.

CWT: UPDATE RELATING TO CLT - REGISTRATION OF FINAL PROSPECTUS WITH THE MONETARY AUTHORITY OF SINGAPORE. See report.


Author's Note
The final prospectus is available at the MAS OPERA website.

REIT Financial News - 1 APR 2010: Industrial and office property markets stabilising: DTZ Research

Industrial and office property markets stabilising: DTZ Research. See article.

Key Points

• islandwide office occupancy improved in the first quarter of this year. 
• average islandwide office occupancy rate rose 0.7 percentage-point on-quarter to 92.4 per cent.  
• DTZ says:  improvement in occupancy rate was due to an increase in demand. Office rents will bottom out only sometime next year, or by the end of the year, depending on whether the economy grows stronger than expected.
• no new completion of office space in the first three months of this year.
• booming residential market has driven many existing commercial building owners towards redevelopment. 
• DTZ expects the industrial rental market to bottom out this year.