A-REIT awarded Business Park site at Fusionopolis for S$110 million

A-REIT awarded Business Park site at Fusionopolis for S$110 million  :

• Press Release
• Announcement

Key Points

• Further to the release “A-REIT tenders for Business Park Site at Fusionopolis for S$110 million” made by Ascendas Funds Management (S) Limited (the “Manager”) in its capacity as the Manager of Ascendas Real Estate Investment Trust (“A-REIT”) on 20 May 2011, the Manager is pleased to announce that Jurong Town Corporation (“JTC”) has awarded A-REIT the said site (the “Site”) at Fusionopolis for S$110 million.
• Upon completion, expected in 3QFY2013/14, this development will strengthen A-REIT’s leading position in the Business & Science Parks segment and bring about economies of scale in operations. The high quality specification and good location of the proposed development will be attractive to target potential users.
• In addition, this development will allow A-REIT to further widen its product offerings in catering to the knowledge and value-based type industries and gives it an opportunity to further diversify its customer base.”

Related Posts

• A-REIT submits S$110m bid for business park site at Fusionopolis - Channel NewsAsia

A-REIT submits S$110m bid for business park site at Fusionopolis - Channel NewsAsia

A-REIT submits S$110m bid for business park site at Fusionopolis - Channel NewsAsia

SINGAPORE : Mainboard-listed Ascendas REIT (A-REIT) has submitted a S$110 million bid for a business park site at Fusionopolis.

A-REIT said this property, together with its existing properties within the one-north region and the neighbouring Science Park I and II, will enhance its market leadership position in the Business & Science Parks segment.

The trust is planning to develop the business park site into a modern suburban business facility, comprising 60 per cent business park space and 40 per cent office space.

It also hopes to attract tenants in the Infocomm Technology and media industries, as well as R&D activities in Physical Science and Engineering.

A-REIT said the total development cost of the property is not expected to exceed 3.3 per cent of A-REIT's deposited property as at 31 March 2011.

The 6,253 square metre site, with a 60-year land lease tenure and an allowable plot ratio of 4.0 times, is located in the one-north master plan region.

The tender for the site was launched under the Government Industrial Land Sales Programme by the Jurong Town Corporation.

A-Reit private placement cumulative distribution for period from 1 January 2011 to 10 April 2011

A-Reit private placement cumulative distribution for period from 1 January 2011 to 10 April 2011:

• Press Release

Key Points

• In an announcement dated 31 March 2011 in relation to the private placement of 206,186,000 new units in A-REIT (“New Units”) to institutional and other investors (the “Private Placement”), Ascendas Funds Management (S) Limited, as the manager of A-REIT (the “Manager”), had announced the intention to declare a distribution of A-REIT’s distributable income for the period from 1 January 2011 to 10 April 2011, being the day immediately prior to the date on which the New Units were issued pursuant to the Private Placement (the “Cumulative Distribution”).
• The board of directors of the Manager is pleased to announce a Cumulative Distribution of 3.661 cents, which will be paid on 9 May 2011.
• Unitholders whose securities accounts with The Central Depository (Pte) Limited are credited with Units as at 5.00 p.m. on 8 April 2011 will be entitled to the Cumulative Distribution that will be paid on 9 May 2011. 
• For the avoidance of doubt, the New Units issued under the Private Placement will not be entitled to this distribution. 
• The next distribution thereafter will comprise A-REIT’s distributable income for the period from 11 April 2011 to 30 June 2011. Quarterly distribution will resume thereafter.

Related Posts 

• A-Reit Q1 2011 Quarterly Earnings Report
• A-Reit launches private placement of up to 209,425,000 new units 
• Close of private placement of 206,186,000 new units in A-Reit at an issue price of s$1.94 per new unit

A-Reit Updated Target Price following Q1 2011 result release

A-Reit Updated Target Price following Q1 2011 result release:

Brokerage	Recommendation	Target Price (S$)	Date
DMG	NEUTRAL	2.00	19/04/11
CIMB	NEUTRAL	2.09	19/04/11
DBS Vickers	HOLD	2.14	19/04/11
OCBC	HOLD	2.04	19/04/11

Latest updates at Stock Target Price.

Related Posts

• A-Reit Q1 2011 Quarterly Earnings Report

A-Reit Q1 2011 Quarterly Earnings Report

A-Reit Q1 2011 Quarterly Earnings Report:

• Press Release
• Financial Statements 
• Presentation Slides 
• Supplementary Info

Key Points

• DPU of 3.27 cents for the reporting quarter.
• FY10/11 amount available for distribution increased by 5.6% y-o-y to S$248.0 million.
• Achieved a net revaluation gain of about S$344.8 million. Consequently, A-REIT’s total assets stand at S$5.4 billion as at 31 March 2011.
• Aggregate leverage of 38.1% and adjusted aggregate leverage (for private placement in Mar 2011) of 31.1% as at 31 Mar 2011.
• NAV per unit of S$1.76 and adjusted NAV per unit (for private placement in Mar 2011) of S$1.77 as at 31 Mar 2011.
• Proactive Capital Management
• Raised new equity of about S$393.3 million (net proceeds) to fund committed investments and to provide A-REIT with greater financial flexibility to take  advantage of growth opportunities.
• Further diversified sources of debt funding through the issuance of ¥9.6 billion 7-year notes due 2018 which has been swapped into S$148.4 million on a floating rate basis.
• Committed investment volume of S$376.1 million in FY10/11 
• Completed acquisition of Neuros & Immunos, a Science Park property at Biopolis, for S$125.6 million.
• Embarked on three asset enhancement projects and A-REIT’s 11th development project (a built-to-suit logistics facility), worth a total of S$132.9 million.
• Forayed into Shanghai, China with the forward purchase of a Business Park  property for approximately S$117.6 million.
• Strong Portfolio Performance
• Portfolio occupancy at 96.0% as at 31 March 2011. A-REIT’s multi-tenanted properties are 92.1% occupied.
• Positive rental reversion of between 2.1% and 6.7% across Business & Science Parks, Hi-Tech Industrial and Logistics sector.
• 17.2% improvement in new take-up rental rates for Science & Business Park versus a year ago, reflecting the optimistic mood of the economy.

Author's Note
The DPU of 3.27 cents was declared for the current quarter.

Note: In connection with the private placement launched on 31 March 2011, the Manager declared a distribution for the period from 1 January 2011 to 10 April 2011, being the day immediately prior to the date on which the New Units were issued. The purpose is to ensure that the total amount available for distribution accrued by A-REIT up to 10 April 2011 is only distributed to the then existing Unitholders as a means to ensure fairness to these Unitholders. The book closure date for such distribution was on 8 April 2011. The payment date will be on 9 May 2011.

The DPU was 3.29 cents in the previous quarter.

Related Posts

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

A-Reit, CacheLog, Cambridge - Date of Result Release for Q1 2011

Updated date of Result Release for Q1 2011:
A-Reit APR 21

CacheLog APR 26
Cambridge APR 28

Latest Update at Results Release.

Close of private placement of 206,186,000 new units in A-Reit at an issue price of s$1.94 per new unit

Close of private placement of 206,186,000 new units in A-Reit at an issue price of s$1.94 per new unit:

• Press Release

Key Points

• Further to its announcement dated 31 March 2011 in relation to the private placement of up to 209,425,000 New Units at an issue price of between S$1.91 and S$1.96 per New Unit, the Issue Price has been fixed at S$1.94 per New Unit, as agreed between the Manager and the Sole Lead Manager and Underwriter, following an accelerated book building process and the total number of New Units to be issued pursuant to the Private Placement is 206,186,000.

Related Posts

• A-Reit launches private placement of up to 209,425,000 new units
• A-REIT's Proposed Acquisition of Neuros & Immunos for S$125.6 Million

A-Reit launches private placement of up to 209,425,000 new units

A-Reit launches private placement of up to 209,425,000 new units:

• Press Release

Key Points

• A-Reit is proposing to carry out a private placement of up to 209,425,000 New Units to institutional and other investors at an issue price of between S$1.91 and S$1.96 per New Unit (the “Issue Price Range”) to raise gross proceeds of approximately S$400.0 million (the “Private Placement”). 
• The net proceeds from the Private Placement amount to approximately S$393.3 million, after deducting the underwriting and selling commission and other estimated fees and expenses (including professional fees and expenses) incurred in connection with the Private Placement.
• Use of Proceeds:
• approximately S$35.9 million will be used to fund A-REIT’s eleventh development project for the construction of a built-to-suit logistics facility in the eastern part of Singapore (which is equivalent to 9.0% of the gross proceeds of the Private Placement);
• approximately S$97.0 million will be used to fund A-REIT’s ongoing asset      enhancement initiatives at Techview and 10 Toh Guan Road and redevelopment of 1 Senoko Ave (FoodAxis @ Senoko), (which is equivalent to 24.3% of the gross proceeds of the Private Placement);
• approximately S$117.6 million will be used to fund the forward purchase of a business space property located at No. 200 Jinsu Road, Jinqiao Export Processing Zone (“JEPZ”), Shanghai, China (which is equivalent to 29.4% of the gross proceeds of the Private Placement)
• approximately S$125.6 million will be used to fund the acquisition of Neuros & Immunos at Biopolis (which is equivalent to 31.4% of the gross proceeds of the Private Placement);
• approximately S$6.7 million will be used to pay the estimated fees and expenses, including professional fees and expenses, incurred or to be incurred by A-REIT (which is equivalent to 1.7% of the gross proceeds of the Private Placement)

Related Posts

• A-REIT's Proposed Acquisition of Neuros & Immunos for S$125.6 Million
• A-REIT forays into Shanghai, China with the forward purchase of a Business Space Property

A-REIT's Proposed Acquisition of Neuros & Immunos for S$125.6 Million

A-REIT's Proposed Acquisition of Neuros & Immunos for S$125.6 Million:

• Press Release
• Announcement 
• Presentation Slides 

Key Points

• A-REIT has signed a conditional Sale and Purchase agreement with Ascendas (Tuas) Pte Ltd (the “Vendor”) to acquire Neuros & Immunos at 8/8A (“the Property”) Biomedial Grove, Biopolis, for a purchase consideration of S$125.6 million (the “Acquisition”).
• Neuros & Immunos are a pair of 7-storey multi-tenanted science park buildings sited on a land area of 8,051 sqm with a 30+30 years land lease tenure with effect from February 2005. They have a gross floor area and net lettable area of 36,931 sqm and 28,345 sqm respectively and are currently 100% occupied.
• The annualised pro forma financial effect of the Acquisition on the distribution per unit for the financial year ended 31 March 2010 would be an additional 0.03 cents per unit.

Related Posts

• A-Reit launches private placement of up to 209,425,000 new units
• A-REIT forays into Shanghai, China with the forward purchase of a Business Space Property

A-Reit, MapletreeLog Updated Target Price by OCBC

A-Reit, MapletreeLog Updated Target Price by OCBC:

REIT	Brokerage	Recommendation	Target Price (S$)	Date
A-Reit	OCBC	HOLD	2.200	08/03/11
MapletreeLog	OCBC	BUY	1.030	08/03/11

Latest updates at Stock Target Price.

A-REIT forays into Shanghai, China with the forward purchase of a Business Space Property

A-REIT forays into Shanghai, China with the forward purchase of a Business Space Property:

• Press Release

Key Points

• A-Reit will be acquiring a business space property located at No. 200 Jinsu Road,  Jinqiao Export  and  Processing Zone (“JEPZ”), Pudong New District, Shanghai, China. 
• This will be effected through the entry into a Sale and Purchase Agreement (the “SPA”)  with Hyday Holding Ltd. (the “Vendor”) (a subsidiary of Qingjian International (South Pacific) Group Development Co., Pte. Ltd. (“Qingjian”)) and Qingjian, for the acquisition of the entire issued and paid-up  share capital (the “Shares”) of  Shanghai (JQ) Investment Holdings Pte. Ltd. (a special purpose vehicle owned by  the Vendor) for a total purchase consideration of approximately RMB 587.9 million (or about S$117.6 million) (the “Proposed Acquisition”).
• The annualised pro forma financial effect of the Proposed Acquisition on the DPU for FY2009/10 is expected to be an additional 0.07 cents per unit after applicable taxes in China.

Author's Note
This will be the first acquistion by A-Reit of a property outside of Singapore since announcing its plan to expand its investment scope to cover the Asia region.. According to the manager, A-REIT’s portfolio will remain predominantly Singapore-based assets in the foreseeable future.

Related Posts

• A-Reit explores regional investment opportunities - 22 NOV 2010

A-Reit Q4 2010 Quarterly Earnings Report

A-Reit Q4 2010 Quarterly Earnings Report:

• Press Release
• Financial Statements 
• Presentation Slides 
• Supplementary Info

Key Points

• Net Property and related finance lease interest income increased 3.3% year-on-year to S$84.1 million
• Distribution Per Unit (DPU) grew by 0.6% year-on-year to 3.29 cents for the reporting quarter.
• Occupancy for the entire portfolio and for the multi-tenanted properties improved over prior quarter to 95.6% and 91.1% respectively.
• Commenced 11th development project, a built-to-suit logistics facility worth about S$35.9 million.
• Completed Phase 2 of Plot 8 Changi Business Park within budget and on  schedule, achieving a revaluation gain of approximately 123.1% (S$42.9 million) over total development cost.
• As at 31 December 2010, A-REIT’s aggregate leverage was 34.7%. 
• Weighted average cost of funding has improved marginally to 3.84%. It has an average term of debt maturity of 3.1 years.
• The  Transfer  Books  and  Register  of  Unitholders will be closed at 5.00 pm on 25 Jan 2011 for the purpose of determining unitholders’ entitlements to distribution.  
• The distribution that will be paid on 28 Feb 2011. 

Author's Note
The DPU of 3.29 cents will be paid on 28 Feb 2010.

Note that the DPU is computed on the basis that none of the S$300m convertible collateral loan due February 2017 is converted into A-REIT Units on or before the book closure date. Accordingly, the actual quantum of DPU may differ if any portion of the convertible collateral loan is converted into Units on or prior to the book closure date.

The DPU was 3.30 cents in the previous quarter.

Related Posts

• A-Reit Q3 2010 Quarterly Earnings Report

A-Reit, Ascott Reit, AIMSAMPI Reit - Date of Result Release for Q4 2010

Updated date of Result Release for Q4 2010:

A-Reit  JAN 17
Ascott Reit  JAN 21 (AM)
AIMSAMPI Reit JAN 25

Latest Update at Results Release.

Updated Target Price by OCBC for various Reits

Updated Target Price by OCBC:

REIT	Recommendation	Target Price (S$)	Date
AscendasReit	HOLD	2.210	10/12/10
AscottReit	BUY	1.380	10/12/10
CapitaComm	HOLD	1.520	10/12/10
CapitaMall	HOLD	2.050	10/12/10
FrasersComm	BUY	0.180	10/12/10
FrasersCT	HOLD	1.500	10/12/10
LippoMapleTrust	BUY	0.590	10/12/10
MapleTreeLog	BUY	1.000	10/12/10
Starhill Gbl	BUY	0.660	10/12/10
Suntec	HOLD	1.500	10/12/10

 
Latest updates at Stock Target Price.

A-Reit explores regional investment opportunities - 22 NOV 2010

A-Reit explores regional investment opportunities. See press release.

Key Points

• A-REIT will be expanding its investment scope to cover the Asia region.
• Currently, the Manager is actively exploring investment opportunities in China and has set up a representative office in Shanghai, China to enhance the Manager’s visibility in the various business space sub-segments and micro property markets.
• A-REIT’s portfolio will remain predominantly Singapore-based assets in the foreseeable future.

Author's Note
To date, all the properties of A-Reit are located in Singapore. It is also the only S-Reit to date to have undertaken development projects. The scope of the development projects are also in Singapore, subject to a cap of 10% of its total asset value by MAS regulation. The positive point about the expansion of its investment scope will be more investment opportunities will be opened up, as there may be very limited opportunities left in Singapore. Its sponsor, Ascendas Pte Ltd, has a real estate portfolio that includes science, business and industrial parks in countries such as India, China, South Korea, Vietnam, Malaysia and the Philippines. These can be potential targets for injection into A-REIT in the future. Of course the move also subject the Reit to other types of risks, currency risk being an example.

Related Posts

• All about REIT - REIT as a Property Developer

Smaller REITs more attractive on price-to-book ratio: analysts - 25 OCT 2010

Source

SINGAPORE : Singapore's real estate investment trusts (REITs) have risen more than 140 per cent since March 2009 and their value could go up by another 60 per cent, according to analysts.

REITs are currently offering juicy yields, which may start looking less attractive to investors when Singapore government bond yields start to climb higher.

Even then, analysts said there still are some standout performers among REITs that are offering value at current prices.

Singapore REITs are gearing up to acquire more properties.

Leverage ratios - which measure how indebted a REIT is in relation to its assets - have continued to fall this year.

Leverage is now at an average 28 per cent. This shows the REITs are well capitalised and in a better position to buy new properties with debt.

Loy Wee Khim, associate director, Corporate & Infrastructure Ratings, Standard & Poor's, said: "Most of the REITs are also thinking of where they are coming from - a low position because of the recapitalisation during the downturn.

"I think they are ready to acquire new assets to enhance their portfolio, so we find that most of them have the appetite to increase their gearing to below 40 per cent or 40 per cent level."

But OCBC Research said valuations of some REITs are now a tad too rich.

OCBC analysts said investors should shy away from the bigger REITs that are trading at premiums to their book value and focus on some of the smaller ones which are trading at a discount.

Meenal Kumar, an investment analyst at OCBC Investment Research, said: "From the perspective of long-term investors, we're actually calling to avoid the first tier large-cap REITs and instead, focus on what we call the forgotten, but still credible REITs.

"And by credible, I mean strong balance sheets, strong sponsors and of course importantly, high absolute yields. And also they should be trading at most, at parity to book value, but ideally at a discount to book value. And in terms of some of our top picks, we like Starhill Global REIT and Ascott Residence Trust."

Similarly, CIMB has recommended smaller REITs in the industrial space, such as Cache Logistics, as bigger players such as A-REIT are trading at a 30 per cent premium to book value.

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

A-Reit Updated Target Price following its Q3 2010 result release:

DMG	NEUTRAL	S$2.11	19/10/10
OCBC	HOLD	S$2.11	19/10/10
CIMB	NEUTRAL	S$2.13	19/10/10
DBS Vickers	HOLD	S$2.19	19/10/10
Kim Eng	HOLD	S$2.30	20/10/10

Latest updates at Stock Target Price.

A-Reit Q3 2010 Quarterly Earnings Report

Q3 2010 results for A-Reit:

• Press Release
• Financial Statements
• Presentation Slides Part 1
• Presentation Slides Part 2

Key Points

• DPU for the quarter is 3.30 cents.
• Net Property Income increased 3.5% year-on-year to S$83.9million.
• Positive rental reversion of between 0.6% and 11.6% on lease renewals across most sub-sectors.
• Upgrade in corporate family rating to “A3” by Moody’s Investors Services.
• Occupancy rate moderated slightly to 95.3% for the portfolio and 90.5% for the multi-tenanted buildings. 
• The Manager has identified three asset enhancement opportunities within the portfolio to capitalize on underutilized plot ratio or to enhance the attractiveness of the properties.
• Redevelopment of 1 Senoko Avenue
• Asset Enhancement Planned for 10 Toh Guan Road
• Asset Enhancement for Techview
• These asset enhancement initiatives are expected to deliver a weighted average yield in excess of 8.5%.
• Diversified portfolio comprising 92 properties in Singapore with a total asset value of about S$4.9b.
• As at 30 September 2010, A-REIT’s aggregate leverage was 34.3% with a weighted average cost of funding of 3.92% and an average term of debt maturity of 3.4 years. All of A-REIT’s floating interest rate exposure is hedged into fixed rate for the next 2.9 years.
• The  Transfer  Books  and  Register  of  Unitholders will be closed at 5.00 pm on 26 Oct 2010 for the purpose of determining unitholders’ entitlements to distribution.  
• The distribution that will be paid on 26 Nov 2010. 

Author's Note
The DPU of 3.30 cents will be paid on 26 Nov 2010. The DPU was 3.37 cents in the previous quarter.

Ascendas Reit, CDL H-Trust - Date of Result Release for Q3 2010

Updated date of Result Release for Q3 2010:
Ascendas Reit   Oct 18
CDL H-Trust      Oct 29

Latest Update at Results Release.

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.