Stock Target Price - Updated Target Price for MLT following its announcement of acquisition

Updated Target Price for MLT following its announcement of acquisition:

CIMB

OUTPERFORM

S$1.01

26/08/10

Latest updates at Stock Target Price.

REIT Financial News - 30 AUG 2010: Asian REITs' total market capitalisation surges 24.7% to US$69b

Source

SINGAPORE: Property consultant CB Richard Ellis (CBRE) said Asian Real Estate Investment Trust (REITs) saw good growth in the first half of this year.

In its "REITs Around Asia" report, CBRE said total market capitalisation of Asian REITs surged by 24.7 per cent on-year to US$69 billion.

Six new REITs were also launched during the first six months of the year in what CBRE said was a dynamic period for REIT initial public offerings in Asia.

The first half saw acquisition activity by Asian REITs rebound sharply with a total of US$5.7 billion worth of deals

That surpasses the US$4.2 billion worth of deals recorded for the same period last year.

Japan remains the most active market for asset purchases.

Singaporean and Malaysian REITs, meanwhile, were active buyers of office, retail, industrial and healthcare assets.

Singapore- listed Fortune REIT also became the first Asian REIT to obtain a dual listing, following a listing in Hong Kong.

Cache Logistic Trust, which has a portfolio of six logistic properties valued at S$730 million, was also successfully launched onto the Singapore REIT market in April.

Singapore REITs' market capitalisation came in at US$21.1 billion, the second highest after Japan, with a market capitalisation of US$32 billion.

Stock Target Price - Updated Target Price for Ascott Reit following its announcement of acquisition and divestment

Updated Target Price for Ascott Reit following its announcement of acquisition and divestment:

OCBC	BUY	S$1.33	23/08/10
CIMB	OUTPERFORM	S$1.35	23/08/10

 
Latest updates at Stock Target Price.

REIT Financial News - 27 AUG 2010: Moody’s upgrades A-REIT’s corporate family rating to A3

Moody’s upgrades A-REIT’s corporate family rating to A3. See:

• Moody's Press Release
• A-Reit Press Release

Key Points

• Moody’s Investors Services (“Moody’s”) has upgraded A-REIT’s corporate family rating to A3 with a stable outlook in a press release issued by Moody’s yesterday.
• This upgrade from Baa1 to A3 signifies the confidence Moody’s has in the quality and resilience of A-REIT’s portfolio as well as the prudent and proactive capital and risk management that the Manager has in place.
• As at 30 June 2010, A-REIT has a portfolio of 92 properties with total asset of S$4.9bn and portfolio occupancy of 95.6%. 
• On the investment front, the Manager is currently developing Phase 2 of Plot 8 Changi Business Park for S$37.4m, which is expected to be completed in 1Q 2011. 
• A-REIT has improved its financial flexibility and capital structure and currently has a weighted average term of debt of 3.5 years and diversified funding sources such that each funding source accounts for not more than 24% of A-REIT’s debt structure.
  
   

REIT Financial News - Q2 2010 Quarterly Earnings Report for Saizen

Second quarter 2010 results for Saizen Reit:

• Financial Statements

Key Points

• Resumption of distributions. Saizen REIT has declared a distribution of 0.26 Singapore cents per Unit for the financial year ended 30 June 2010. This distribution relates to distributable cash accumulated over two months (May 2010 and June 2010), after the repayment of the loan of Yugen Kaisha (“YK") Keizan in April 2010.
• YK Shintoku refinancing issue. The JPY 7.1 billion (S$112.0 million) CMBS loan of YK Shintoku went into maturity default in November 2009. The Board of Japan Residential Assets Manager Limited, the manager of Saizen REIT, is pleased that there has been a further development in this respect. Discussions with a financial institution on the terms and timing of a loan, which will potentially enable the loan of YK Shintoku to be refinanced, have commenced. Currently, the main impact of the maturity default is the increase in interest rate on the outstanding loan amount from 3.07% per annum to a default interest rate of 7.07% per anum.
• Property operations remained stable in the fourth quarter ended 30 June 2010 ("4Q FY2010") and in FY2010. The overall occupancy rate as at 30 June 2010 was 91.3%, while overall rental reversion of new contracts entered into in FY2010 was marginally lower by about 5.3% from previous contracted rates. The average turnover rate was 20% in FY2010, as compared to 22% in FY2009.
• Financial position strengthened with loan repayments, new banking relationships and loan refinancing. The capital structure of Saizen REIT had changed substantially in FY2010. Three CMBS loans, amounting to an aggregate of JPY 7.0 billion (S$110.4 million), were fully repaid in FY2010 with operational cash flow and proceeds of a rights issue conducted in May 2009. New banking relationships were established with Mizuho Bank Ltd and Tokyo Star Bank Ltd in FY2010, representing new financing amounting to an aggregate of JPY 3.0 billion (S$47.3 million). Further, the JPY 5.9 billion (S$93.1 million) loan of Godo Kaisha (“GK") Choan, which was due to mature in July 2011, was successfully refinanced with a maturity date of 15 June 2013.
• Divestment of five properties. Five properties from the property portfolio of YK Shintoku were sold in the first half of FY2010 as part a deleverging plan implemented to reduce the absolute amount of the loan of YK Shintoku and the leverage of the corresponding property portfolio, so as to facilitate refinancing efforts. One of the five properties was sold at a premium of about 7% over its valuation, while the other four properties were sold at discounts of between 5% to 9% to valuation.

Author's Note
The book closure date for the distribution of 0.26 cents will be on 13 Sep 2010, and will be paid on 29 Sep 2010. Note that while the distribution is for the financial year ended 30 June 2010, it is actually the distributable cash accumulated over only two months (May 2010 and June 2010).


This is the first time the Reit is distributing dividend since 2008. 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.

REIT Financial News - 13 AUG 2010: AIMS AMP Reit - Announcement of Acquisition and Private Placement

AIMS AMP Capital Industrial REIT announces proposed acquisition, new debt facility and fully underwritten renounceable rights issue. See:

• Press Release
• Report
• Presentation Slides

Key Points

• Proposed acquisition of a high-quality industrial property at 27 Penjuru Lane Singapore 609195 for S$161.0 million.
• New debt facility of S$280.0 million.
• Fully underwritten renounceable 7 for 20 rights issue to raise S$79.6 million.
• The Rights Issue Books Closure Date which is expected to be 5.00 p.m. on 20 September 2010.
• The Rights Units will be issued at a price of S$0.155 per Rights Unit, which is a discount of 32.6% to the closing price of S$0.230 per unit on 19 August 2010 and which is a discount of 26.5% to the theoretical ex-rights price (“TERP”) of S$0.211.
• The Manager expects to raise gross proceeds of S$79.6 million, of which:



• S$64.5 million will be used to part satisfy the total cash cost of the Acquisition.
• S$4.8 million will be used to pay for underwriting and selling commissions and professional and other fees and expenses.
• S$10.3 million will be used to pay for debt related costs and for general corporate and working capital purposes.



• As a demonstration of their support and commitment to the Trust, the Sponsors, AIMS Financial Group and AMP Capital Investors (Luxembourg No. 4) S.A.R.L., have committed to subscribe for their pro rata rights entitlements of 39,286,080 Rights Units and 82,500,000 Rights Units respectively.

REIT Financial News - 22 AUG 2010: Mapletreelog gains further foothold in South Korea with second property

Mapletreelog gains further foothold in South Korea with second property. See:

• Press Release
• Presentation Slides

Key Points

• Acquisition of 2nd property in South Korea for KRW 28 billion (approximately S$32 million)
• Accretive acquisition with initial net property yield in excess of 9%; higher than existing South Korea asset of 7.7%
• The vendor, Multi-Q Logistics Co. Ltd, specializes in the storage and
  distribution of fast moving consumer goods. The Vendor will lease back the Property for 5 years at rentals that provide for annual escalation.
• This acquisition will be the seventh announced since December 2009, bringing the total acquisitions announced to-date to about equivalent of S$460 million. 
• The total book value of MapletreeLog’s investment properties currently stands at about S$3.09 billion, and will reach approximately S$3.32 billion, on completion of all the announced acquisitions.
• Assuming that the purchase price and other acquisition costs of the Property are fully funded by debt, MapletreeLog’s gearing level will increase to 44.2%, after taking into account all acquisitions announced to date.

Author's Note
The Reit has been quite aggressive in its acquisitions recently. The gearing level will increase to 44.2% assuming all the acquisitions are funded by debt. This will make it one of the highest in terms of gearing among the S-Reits. I will not be surprised if the Reit goes for another round of equity fund raising.

REIT Financial News - 20 AUG 2010: Ascott REIT buying 28 serviced residences for S$970m

i) PROPOSED ACQUISITIONS AND DIVESTMENT
ii) APPROVAL IN-PRINCIPLE FOR THE LISTING OF NEW UNITS
See:

• Press Release
• Report
• Presentation Slides

Key Points

• Acquiring 28 serviced residences from its parent company, The Ascott, for S$969.6 million. 
• With the acquisition, its assets will double to about S$2.85 billion.
• it will become the sixth largest REIT in Singapore in terms of assets after its acquisition.
• Of the 28 properties to be acquired, 26 are in Europe, 1 in Singapore, and 1 in Vietnam (Hanoi).
• The Trust expects its annualised distribution per unit to rise some 4.8 per cent to 7.74 cents in its 2011 financial year. 
• It will also be selling a serviced apartment, Ascott Beijing, to its parent for S$214 million. 
• The divestment is 66 per cent above the property's valuation of S$181.8 million as at June 30 and will realise a gain of approximately S$106.2 million.
• To part finance the acquisitions, the Reit intends to raise approximately S$560.6 million through an equity fund raising which will comprise a non-renounceable preferential offering to existing unitholders and a private placement. 
• The proposed equity fund raising is expected to increase the Reit's free float by approximately 73% from S$385.3 million to S$665.3 million.
  
   
  

Stock Target Price - Updated Target Price for Cambridge following its announcement of private placement and acquisition

Updated Target Price for Cambridge following its announcement of private placement and acquisition:

DMG	BUY	S$0.62	13/08/10
Phillip Securities	HOLD	S$0.52	16/08/10

Latest updates at Stock Target Price.

REIT Financial News - 13 AUG 2010: Cambridge - Announcement of Acquisition and Private Placement

ACQUISITION OF 22 CHIN BEE DRIVE AND 1 & 2 CHANGI NORTH STREET 2
LAUNCH OF PRIVATE PLACEMENT OF 83,683,000 NEW UNITS
S$50.0 MILLION THREE-YEAR TERM LOAN FACILITY
See : Press Release

Key Points

• The trustee of CIT has entered into two separate Put and Call Option Agreements to acquire the Target Properties:



1. Deluge Fire Protection (S.E.A.) Pte Ltd in respect of the acquisition by CIT of the property located at 22 Chin Bee Drive, Singapore 619870 (22 Chin Bee Drive)
2. ETLA Limited in respect of the acquisition by CIT of the property located at 1 Changi North Street 2, Singapore 498808 and 2 Changi North Street 2, Singapore 498775 (1 & 2 Changi North Street 2)



• To raise gross proceeds of approximately S$40.0 million by issuing 83,683,000 new units in CIT by way of a private placement to:



• institutional and other investors at an issue price of S$0.478 per New Unit 
• at an issue price of S$0.503 per New Unit to the Oxley Group and Mitsui & Co., Ltd.



• The Trustee has today entered into a facility agreement with National Australia Bank Limited ("NAB") pursuant to which NAB will make available to the Trustee a S$50.0 million three-year secured term loan facility (the “Acquisition Term Loan Facility”) and a S$20.0 million secured revolving credit facility of same tenor (the “Revolving Credit Facility”).

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

Updated date of Result Release for Q2 2010:
Saizen Reit   Aug 26 (AM)

Latest Update at Results Release.

Stock Target Price - Updated Target Price for Plife following its 2Q 2010

Updated Target Price for Parkway Life Reit following its 2Q 2010 Earnings Results:

CIMB	OUTPERFORM	S$1.57	06/08/10
DMG	BUY	S$1.66	10/08/10
Phillip Securities	BUY	S$1.66	10/08/10
Kim Eng	BUY	S$1.64	10/08/10

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for Ascott Reit following its announcement of Divestment of Jakarta Property

Updated Target Price for Ascott Reit following its announcement of Divestment of Jakarta Property:

Kim Eng

BUY

S$1.35

10/08/10

 
Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for Ascott Reit following its announcement of Divestment of Jakarta Property

Updated Target Price for Ascott Reit following its announcement of Divestment of Jakarta Property:

OCBC

BUY

S$1.33

06/08/10

 
Latest updates at Stock Target Price.

REIT Financial News - 6 AUG 2010: Ascott Reit divests Jakarta property at S$33.9 million, 60% above valuation

Ascott Reit divests Jakarta property at S$33.9 million, 60% above valuation. See:

• Press Release
• Announcements
• Presentation Slides

Key Points

• Ascott Reit has entered into a sale and purchase agreement for the sale of Country Woods, Jakarta in Indonesia. 
• The agreed price of the property at S$33.91 million is 60% above the property's valuation as at 30 June 2010 of S$21.2 million.
• Ascott Reit is expected to enjoy an estimated net gain of S$5.7 million from the divestment. 
• The transaction is expected to be completed in the fourth quarter of 2010.

Author's Note
Previous analyst reports have already indicated that Ascott Reit is likely to divest its properties. From the announcements, the rationale for the divestment is as follows:

"The Divestment is in line with the Ascott Reit’s strategy to unlock the underlying value of a property that has reached a stage that offers limited growth and re-deploy proceeds to optimise the yield of the portfolio. Moreover, the Property would require significant capital expenditure in order for it to compete with the increased competition in the vicinity."

It is also indicated that the proceeds from the Sale will be used to pare down the Group’s debts or for funding future acquisitions.

This divestment exercise follows the recent divestment of Starhub Centre and Robinson Point by Capitacommercial Trust. So far market has reacted positively to the divestment exercises of CCT, with its share price hitting the 52 weeks high of 1.4.

Stock Target Price - Updated Target Price for Plife following its 2Q 2010

Updated Target Price for Parkway Life Reit following its 2Q 2010 Earnings Results:

DBS Vickers

BUY

S$1.59

06/08/10

 

Latest updates at Stock Target Price.

REIT Financial News - Q2 2010 Quarterly Earnings Report for Plife

Second quarter 2010 results for Plife:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Distribution per unit (“DPU”) for the quarter at 2.09 cents.
• Gross revenue increased 16.4% and 15.3% for 2Q 2010 and 1H 2010 respectively.
• DPU increased 10.9% and 10.3% for 2Q 2010 and 1H 2010 respectively.
• Minimum guaranteed rent for Singapore Hospital Properties to grow by 1.73% for fourth year of lease term commencing 23 August 2010.
• Continues to strengthen balance sheet and unlock value from existing portfolio for growth .

Author's Note
The quarterly DPU for 2Q 2010 of 2.09 cents will be paid on 9 Sep 2010, with the book closure date on 17 Aug 2010.

The DPU was the 2.07 cents for the previous quarter.

Stock Target Price - Updated Target Price for AIMSAMPI Reit following its 2Q 2010

Updated Target Price for AIMSAMPI Reit following its 2Q 2010 Earnings Results:

Phillip Securities

HOLD

S$0.23

03/08/10

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for FCOT following its 2Q 2010

Updated Target Price for FCOT following its 2Q 2010 Earnings Results:

DBS Vickers	HOLD	S$0.16	29/07/10
Phillip Securities	HOLD	S$0.17	30/07/10

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for CacheLog following its 2Q 2010

Updated Target Price for CacheLog following its 2Q 2010 Earnings Results:

DBS	BUY	S$1.08	30/07/10
CIMB	OUTPERFORM	S$1.26	30/07/10

Latest updates at Stock Target Price.

REIT Financial News - Q2 2010 Quarterly Earnings Report for LMIR

Second quarter 2010 results for LippoMapleTrust:

• Press Release
• Financial Statements

Key Points

• Total Gross Revenue of S$40.1 million for the three months ended 30 June 2010 (“2Q 2010”) is 91.7% above 2Q 2009, mainly as a result of additional contributions from service charges receipt and utilities cost recovery since January 2010.
• Net Property Income of S$21.6 million for 2Q 2010 is 17.1% above 2Q 2009, despite assuming the maintenance and operating costs since January 2010.
• Distributable income per unit (“DPU”) of 1.04 cents for 2Q 2010, which equates to an annualized yield of 9.4% at closing unit price of 47.5 cents on 30 June 2010.
• Prudent risk management policy with gearing at 10.3% of total deposited property. 
• Maintain above industry average occupancy rate at approximately 98.0% as at 30 June 2010.

Author's Note
The quarterly DPU for 2Q 2010 of 1.04 cents will be paid on 27 Aug 2010, with the book closure date on 6 Aug 2010.

The DPU was 1.20 cents for the previous quarter.

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

Second quarter 2010 results for AIMSAMPI Reit:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Gross revenue for the quarter increased by 46.4% year-on-year to S$16.0 million.
• Net property income for the quarter increased by 26.1% year-on-year to S$11.7 million.
• Distribution per unit (“DPU”) maintained at 0.5376 cents.
• Low aggregate leverage of 28.8%.
• Portfolio occupancy remains high at 97.2%.

Author's Note
The quarterly DPU for 2Q 2010 of 0.5376 cents will be paid on 16 Sep 2010, with the book closure date on 11 Aug 2010.

The DPU was the same at 0.5376 cents for the previous quarter.