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.

Stock Target Price - Updated Target Price for CCT following announcement of asset enhancement plan for 6 Battery Road

Updated Target Price for CCT following announcement of asset enhancement plan for 6 Battery Road:

CIMB OUTPERFORM S$1.37
DBS HOLD S$1.24

Latest updates at Stock Target Price.

REIT Financial News - 27 MAY 2010: CCT initiates asset enhancement of Six Battery Road

CCT initiates asset enhancement of Six Battery Road Grade A office building in line with strategy to increase value through its portfolio reconstitution:
Press release
Presentation

Key Points

• Six Battery Road will be physically, technically and functionally enhanced to meet the modern-day needs of office tenants and improve the building’s energy efficiency and environmental sustainability. 
• The works are scheduled to commence in October 2010 and executed in phases over four years at a total capital expenditure of approximately S$92 million.
• Based on the property’s valuation as at end-December 2009, the cost is equivalent to approximately 8%.

Author's Note
On page 39 of the presentation slides, the forcast value creation is as follows:

Incremental Gross Revenue	S$9.2 mil
Incremental Net Property Income	S$7.4 mil
Capital Expenditure	S$92.0 mil
Projected return on investment (on a stabilised basis)	8.1%
Capital Value of AEI (assumed at 4.25% capitalisation rate)	S$174 9 mil
Increase in Value (net of investment cost)	S$82.9 mil

Stock Target Price - Updated Target Price for CMT by OCBC

Updated Target Price and Recommendation by OCBC:

CMT BUY S$1.95
Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for K-Reit,CCT,SUNTEC Reit by CIMB

Updated Target Price and Recommendation by CIMB:

K-Reit UNDERPERFORM S$1.01
CCT OUTPERFORM S$1.37
SUNTEC Reit OUTPERFORM S$1.60

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for AIMSAMPI Reit by Philip Securities following Q1 2010 results

Updated Target Price and Recommendation for AIMSAMPI Reit by Phillip following release of Q1 2010 results:

Phillip Securities HOLD S$0.23

Latest updates at Stock Target Price.

DPU Information

Have created a new DPU information page:
http://sreitinvestor.blogspot.com/p/dpu.html

Includes DPU information such as:

• DPU for current quarter.
• DPU for previous quarter.
• DPU distribution frequency.

REIT Financial News - 12 MAY 2010: Quarterly Earnings Report for AIMSAMPI Reit

First quarter 2010 results for AIMS AMP CAP INDUSTRIAL REIT:

• Press Release 
• Financial Statements  
• Presentation Slides

Key Points 

• DPU of 0.5376 cents for 1Q 2010. 
• Distribution to Unitholders of S$7.9 million for the quarter.
• Gross revenue was up 19.4% period-on-period to S$15.6 million in 4QFY2010, reflecting the full quarterly rental income contribution from 1A IBP which was acquired in 3QFY2010 and 80 days rental income contribution from the four AMP Capital properties which were acquired in 4QFY2010.
• Net property income was up 28.2% period-on-period to S$11.9 million in 4QFY10 and up 8.9% year-on-year to S$40.1 million in FY2010.
• The amount available for distribution was up by 57.9% period-on-period to S$7.9 million in 4QFY2010 and was slightly down by 4.6% year-on-year to S$22.3 million for FY2010.
• Portfolio occupancy is 96.0%, which compares favourably with the Singapore industrial average of 91.2%.
• Aggregate leverage of 28.9% as at 31 March 2010.
• A robust net asset value (NAV) of 31 cents per unit as at 31 March 2010.
• Property portfolio of 26 properties with an independently assessed total value of S$635.25 million.

Author's Note
Based on the closing price of the Reit of 0.220 on 12 May 2010, the DPU of 0.5376 cents translates to an annualised yield of about 9.77%.

The DPU of 0.5376 cents will XD on 20 May 2010 and will be paid on 28 Jun 2010.

Latest updates at Results Release.

Stock Target Price - Updated Target Price for Ascendas Reit, Ascott Reit, Capitacomm, CapitaMall Trust, FrasersCT, LippoMapleTrust, MapletreeLog, SUNTEC Reit by OCBC

Updated Target Price and Recommendation by OCBC:

Ascendas Reit HOLD S$1.85
Ascott Reit BUY S$1.32
Capitacomm BUY S$1.26
CapitaMall Trust HOLD S$1.93
FrasersCT BUY S$1.50
LippoMapleTrust BUY S$0.55
MapletreeLog BUY S$0.93
SUNTEC Reit BUY S$1.44

Latest updates at Stock Target Price.

REIT Financial News - 12 MAY 2010: Quarterly Earnings Report for Saizen Reit

First quarter 2010 results for Saizen Reit:

• Press Release
• Financial Statements 
• Presentation Slides 

Key Points 

• Property operations in the third quarter ended 31 March 2010, which has been the busy leasing season, remained stable with overall occupancy rate remaining healthy at 93.4% at the end of March 2010.
• Financial position continued to strengthen with repayment of loans and establishment of new banking relationships.
• Repaid all but one commercial mortgage-backed securities (CMBS) loan.
• Have turned the corner and have begun cash accumulation in May
  2010 for distribution for the financial year ending 30 June 2010. Unitholders can expect to receive it in September 2010.

Author's Note
As in previous quarters, no DPU has been declared this quarter. DPU is expected to resume from the next quarter. The last time the Reit has distributed dividend was in Sep 2008 for the period from 09/11/2007 to 30/06/2008. The DPU for the period then was S$0.0467.


Latest updates at Results Release.

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

Updated Target Price and Recommendation for LMIR by OCBC following release of Q1 2010 results:

OCBC BUY S$0.55

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for Plife following Q1 2010 results

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

DMG BUY S$1.52
Philips BUY S$1.57
DBS BUY S$1.51

Latest updates at Stock Target Price.

REIT Financial News - 6 MAY 2010: Quarterly Earnings Report for LMIR

First quarter 2010 results for Lippo-Mapletree Indonesia Retail Trust:

• Press Release, Financial Statements, and Presentation Slides

Key Points 

• DPU of 1.20 cents for 1Q 2010.
• Distributable Income of S$12.9 million for the three months ended 31 March 2010 (1Q 2010) is 11.5% below 1Q 2009.
• Revenue was 15.7% higher year on year due to the effect of foreign exchange rates used for translating revenues denominated in Indonesian Rupiah into Singapore Dollars.

Author's Note
Based on the closing price of the Reit of 0.485 on 6 May 2010, the DPU of 1.2 cents translates to an annualised yield of about 9.9%.

The DPU of 1.2 cents will XD on 12 May 2010 and will be paid on 27 May 2010. The DPU for the previous quarter was 1.16 cents.

Latest updates at Results Release.

REIT Financial News - 6 MAY 2010: Quarterly Earnings Report for Plife Reit

First quarter 2010 results for Parkway Life Reit:

• Press Release, Financial Statements, and Presentation Slides

Key Points 

• DPU increases 9.7% to 2.07 cents for 1Q 2010.
• Gross revenue increases 14.1% to S$18.6 million.
• Net property income increases 13.4% to S$17.2 million.
• Higher revenue was due primarily to additional revenue contribution amounting to S$1.8 million from the eight nursing homes acquired in Japan in 4Q 2009, as well as higher rent from the existing properties.
• As at 31 March 2010, PLife REIT’s gearing was 28.2%.
• Well-positioned for growth on improving economy and growing regional healthcare demand.

Author's Note
Based on the closing price of the Reit of 1.32 on 6 May 2010, the DPU of 2.07 cents translates to an annualised yield of about 6.27%.

The DPU of 2.07 cents will XD on 12 May 2010 and will be paid on 9 Jun 2010. The DPU for the previous quarter was 2.05 cents.

Latest updates at Results Release.

REIT Financial News - 4 MAY 2010: Quarterly Earnings Report for Fortune Reit

First quarter 2010 results for Fortune Reit:

• Financial Statements

Key Points 

• DPU of 6.38 HK cents for the quarter.
• Total Revenue for 1Q 2010 was HK$209.1 million, 24.3% higher compared to the same quarter last year. 
• Net Profit of the Property Companies was HK$100.1 million, representing a 19.5% increase compared to the same period last year. 
• Income Available for Distribution for the Reporting Period was HK$106.2 million, 28.2% higher than the corresponding period last year.

Author's Note
Based on the closing price of the Reit of HKD 3.590. on 4 May 2010, the DPU of 6.38 HK cents translates to an annualised yield of about 7.1%.

There will be no distribution payment this quarter as Fortune Reit distributes semi-annually. The DPU of 6.38 HK cents will be paid in the next quarter together with the DPU for the next quarter.

Latest updates at Results Release.

Stock Target Price - Updated Target Price for CDL H-Trust by CIMB following Q1 2010 results

Updated Target Price and Recommendation for CDL H-Trust by CIMB following release of Q1 2010 results:

CIMB OUTPERFORM S$2.20

Latest updates at Stock Target Price.

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

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

CIMB OUTPERFORM S$1.35

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for CDL H-Trust following Q1 2010 results

Updated Target Price and Recommendation for CDL H-Trust following release of Q1 2010 results:

DBS BUY S$2.20
DMG BUY S$2.30
Phillips HOLD S$1.96

Latest updates at Stock Target Price.

REIT Financial News - 30 APR 2010: Quarterly Earnings Report for CDL H-Trust

First quarter 2010 results for CDL H-Trust:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Gross revenue increased 18.1% to S$26.6 million
• Income available for distribution per Stapled Security rose 18.3% to 2.58 cents.
• Strong RevPAR growth of 15.8% to S$174 for Singapore Hotels.
• Continuation of robust growth in hospitality demand on the back of strong tourism drivers boosted by the phased opening of the Integrated Resorts.

Author's Note

Currently the Reit pays out 90% of the income available for distribution. So the DPU to be distributed for the quarter is 2.32 cents. Based on the lastest closing price of the Reit of $1.93 on 30 April 2010, the DPU of 2.32 cents translates to an annualised yield of about 4.8%.

There will be no distribution payment this quarter as CDL H-Trust distributes semi-annually. The DPU of 2.32 cents will be paid in the next quarter together with the DPU for the next quarter.

The DPU for the previous quarter was 2.67 cents.

Latest updates at Results Release.