Singapore Stock Market News

Singapore Land - Stable rental income

StockFanatic
Publish date: Mon, 05 Nov 2012, 11:58 AM
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SingLand's 3Q12 benefited from development profits in China. Rental income stabilised which, together with low interest rates, bodes well for asset values. A pick-up in capital deployment this year promises more development profits and returns, which could catalyse the stock.

3Q/9M12 core earnings met estimates at 28%/77% of our FY12 forecast and 26%/72% of consensus, on lumpy recognition of 3Q China development profits. We adjust EPS by -14%/+9% for recognitions and raise our target price for the Bright Hill Drive acquisition, lower cap rates and lower RNAV discount of 40% (prev. 45%). Maintain Outperform.
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