Highlights

SGX Stocks and Warrants

Author: kimeng   |   Latest post: Fri, 18 Jan 2019, 09:58 AM

 

ESR-REIT: 4Q18 Results Within Expectations

Author: kimeng   |  Publish date: Fri, 18 Jan 2019, 09:58 AM


4Q18 revenue increased 114.9% YoY to S$58.4m while NPI increased 112.1% YoY to S$42.3m. The increase in revenue and NPI were mainly due to 1) full quarter contributions from 8 Tuas South Lane and 7000 Ang Mo Kio Avenue 5 (“7000 AMK”) which were acquired in Dec 2017, 2) the inclusion of Viva Industrial Trust's portfolio from 16 Oct 2018, and 3) additional contributions from 15 Greenwich Drive which was acquired 25 Oct 2018.

Borrowing costs increased 106.7% YoY to S$10.9m. 4Q18 DI increased 140.2% YoY to S$29.3m while DPU increased 8.2% YoY to 1.005 S cents. All in all, FY18 DPU came up to 3.857 S cents or 101% of our full-year forecast.

Portfolio occupancy is at 93.0% as at end-FY18 and rental reversions have improved on a YoY basis (-2.9% for FY18 vs. -15.8% for FY17).

We maintain BUY but place our fair value of S$0.59 under review pending further details from this morning’s briefing.

Source: OCBC Research - 18 Jan 2019

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First REIT: Uncertainty Still Unsettling

Author: kimeng   |  Publish date: Fri, 18 Jan 2019, 09:57 AM


  • In-line scorecard
  • Reasons to be concerned
  • FV lowered to S$0.97

Receivables Have Dropped

QoQ First REIT’s (FREIT) 4Q18 results were in-line with our expectations. Gross revenue grew 2.7% YoY to S$29.3m, supported by contributions from Siloam Hospitals Buton & Lippo Plaza Buton, Siloam Hospitals Yogyakarta and existing properties. Finance costs jumped by 21.1% YoY to S$5.9m, largely on the back of higher loan costs and the full quarter interest expenses for the loan drawn down to finance the acquisition of Siloam Hospitals Yogyakarta in 4Q17.

FREIT booked S$5.4m of net fair value losses on investment properties, as the valuers employed a higher discount rate in their DCF valuations to account for depreciation in the IDR.

Receivables have increased 24.7% YoY to S$32.4m, but have (encouragingly) dropped 34.3% QoQ as Lippo Karawaci (LK), one of FREIT’s two sponsors, has caught up on their payments. 4Q18 DPU came in flat YoY at 2.15 S-cents, bringing FY18 DPU to 8.60 S-cents, Which Comprises 98.9% of Our Fullyear Forecast.

Murky Outlook

We believe that the concerns outlined in our Dec’18 report remain valid. In a recent press release, LK outlined that it is looking to raise in excess of IDR 6tr in net cash from the divestment of its remaining stake in FREIT, among other asset divestment projects. The market is likely to still be waiting for the conclusion of this, and also for clarity on the implications this would have on master leases as they start expiring from 2021.

Shareholders would also have to contend with the possibility of an equity raise, though management has mentioned the importance of keeping acquisitions DPU-accretive. On the specific concern that extended/new contracts would require FREIT to receive rental in IDR (without SGD equivalency), management has cited that there could be ways to mitigate potential downside risk.

This could include pegging the annual base rental escalation of Indonesian assets to Indonesia’s CPI, which has been higher than Singapore’s CPI over the last 5 years. As we roll forward our valuations, we reduce our assumption for Singapore’s 2018 CPI, and increase our market risk premium assumption. Thus, our fair value drops from S$1.05 to S$0.97.

Source: OCBC Research - 18 Jan 2019

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First REIT: In-line 4Q18 Results

Author: kimeng   |  Publish date: Thu, 17 Jan 2019, 12:39 PM


First REIT’s (FREIT) 4Q18 results were within our expectations. Gross revenue grew 2.7% YoY to S$29.3m, supported by contributions from Siloam Hospitals Buton & Lippo Plaza Buton, Siloam Hospitals Yogyakarta and existing properties.

Finance costs grew 21.1% YoY to S$5.9m, largely on the back of higher loan costs and the full quarter interest expenses for the loan drawn down to finance the acquisition of Siloam Hospitals Yogyakarta in 4Q17.

We note that FREIT booked S$5.4m of net fair value losses on investment properties, as a more conservative approach was adopted in the latest valuation exercise.

Receivables have increased 24.7% YoY to S$32.4m, but dropped 34.3% QoQ. 4Q18 DPU came in flat YoY at 2.15 S-cents, bringing FY18 DPU to 8.60 S-cents, which comprises 98.9% of our full-year forecast.

Pending an analyst briefing, we maintain our HOLD rating but place our FV of S$1.13 under review.

Source: OCBC Research - 17 Jan 2019

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Mapletree Industrial Trust: Another Step Up the Hi-tech Ladder

Author: kimeng   |  Publish date: Thu, 17 Jan 2019, 12:38 PM


  • Recent proposed acquisition accretive
  • Working with the best
  • Moving in right direction

Proposed Acquisition of 18 Tai Seng From Sponsor for S$268.3m

Mapletree Industrial Trust (MIT) recently announced its proposed acquisition of 18 Tai Seng from its sponsor Mapletree Investments Pte Ltd for an agreed property value of S$268.3m. The property is a nine-storey high specification mixed-use development located in the Paya Lebar iPark, has a total GFA of 443,810 sq ft and was completed only in Nov 2016.

This proposed acquisition is another positive step by MIT to move further up the hi-specs value chain. Post completion, the Hi-Tech Buildings segment will form 42.7% of its AUM, versus 39.2%, (as at 30 Sep 2018).

Operating metrics of 18 Tai Seng includes a high committed occupancy level of 94.3%, although physical occupancy was 87.4% (as at 30 Sep 2018); while 95.7% of leases have some form of annual rental escalation.

Current WALE is ~3.6 years. The property is expected to generate an initial NPI yield of ~6.8%, which is higher than MIT’s existing portfolio NPI yield of 6.4%. Although final funding structure has not been decided, management intends to make this transaction DPU and NAV accretive.

We assume full debt funding at this juncture, and raise our FY20 DPU forecast by 2.4% (FY19 unchanged). Consequently our fair value moves from S$2.01 to S$2.04. An EGM will be held on 22 Jan next week to seek unitholders’ approval on this acquisition. Given the positive merits, we recommend unitholders to vote in favour of this purchase.

Deepening Collaboration With Equinix

Other recent developments for MIT include the signing of a long 25-year lease agreement with Equinix at its 7 Tai Seng Drive property, and subsequently upgrading it to a data centre. Upgrading works have already commenced progressively since Sep 2018.

Looking ahead, although there are concerns of continued negative rental reversions amid challenging manufacturing and industrial data points globally and in Singapore (which we agree with as well), we believe management’s drive to scale up the hi-tech value chain will help to mitigate some of the weakness in the traditional industrial space. Time is needed to extract more value from this transition, but management is clearly moving in the right direction, in our view.

Source: OCBC Research - 17 Jan 2019

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CapitaLand Limited: Proposed Acquisition of Ascendas-Singbridge Pte Ltd

Author: kimeng   |  Publish date: Mon, 14 Jan 2019, 11:46 AM


CapitaLand announced this morning that it has entered into a transaction with Temasek to acquire from its subsidiary, Ascendas-Singbridge (ASB), all the shares in two wholly owned intermediary subsidiaries of ASB.

The proposed transaction is valued at an enterprise value of S$10.9b, of which S$6.0b is the equity value, while the remaining S$4.9b is made up of net debt and minority interest.

This acquisition is subject to approval by CapitaLand’s shareholders at an EGM. If completed, the combined total AUM of the group will exceed S$116b.

Under the terms of the agreement, Temasek will effectively receive S$6.0b, which will be satisfied 50% in cash (S$3.0b) and 50% in new CapitaLand shares (S$3.0b) which will be priced at S$3.50 per share.

This proposed transaction will significantly increase CapitaLand’s scale and allow it to have a strong presence in the industrial and logistics markets. CapitaLand expects to reap synergies given the complementary nature of ASB’s business to CapitaLand’s.

We currently have a BUY rating on CapitaLand with a fair value estimate of S$3.96, which is based on a 20% RNAV discount applied. More details will be provided after the analyst briefing later this morning.

Source: OCBC Research - 14 Jan 2019

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qps9999 Lets check what capital land news update
https://www.forexadviseclub.com/singapore-capital-update-news-stock-picks/
14/01/2019 16:46

Singapore Press Holdings: In-line Results

Author: kimeng   |  Publish date: Mon, 14 Jan 2019, 11:45 AM


SPH’s 1QFY19 operating revenue dropped 1.7% YoY to S$254.3m, with the lower print advertisement revenue partially offset by contribution from the group’s UK student accommodation portfolio.

While the group’s drop in Classified print ad revenue remained steep at 17.1% YoY, the print Display ad revenue drop of 2.7% was a welcomed improvement.

We note that finance cost has increased by 20.8% YoY to S$10.6m, due to the group’s acquisition of the UK student accommodation portfolio and the development of The Woodleigh Residences and The Woodleigh Mall.

Core PATMI grew 1.5% YoY to S$57.9m, after accounting for 1QFY18’s gain arising from the dilution of interest in MindChamps, retrenchment costs, and gain on disposal of investments. We deem this set of results to be broadly in-line with our expectations.

Pending an analyst briefing, we maintain our HOLD rating but place our fair value of S$2.55 under review.

Source: OCBC Research - 14 Jan 2019

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