STOCK IN FOCUS
STARHILL GLOBAL REIT 
Singapore property portfolio propping up growth. Starhill Global REIT (SGREIT) recorded growth of 4.4% YoY in its net property income (NPI) for 2QFY12, which was mainly buoyed by an improving performance of its Singapore property portfolio. Gross revenue, meanwhile, witnessed an increase of 4.8% YoY in the same quarter.
An increasingly challenging macro environment.  SGREIT generates 62.8% of its gross revenue from Singapore, leaving it heavily exposed to the underlying macroeconomic trends in the market. SGREIT's retail assets, namely Wisma Atria and Ngee Ann City, are positioned in the mid'to high'end segment, which means that its clientele comprises largely of discretionary spenders. The company's portfolio does not consist of Takashimaya department stores. Therefore, we do not believe the company is likely to escape unscathed from a broad'based retail spending slowdown. Retail sales growth in Singapore (excluding automobile sales), in YoY terms, is showing waning signs of momentum, signalling more cautious discretionary spending in the near future.

Asset Enhancement Initiatives ('AEI') completion at Wisma Atria to partly cushion against economic slowdown.  The majority of asset redevelopment works at Wisma Atria has already been completed in 2QFY2012, generating a return on investment (ROI) of around 12.8%, which exceeded the company's initial projected ROI of 8%. Thanks to its AEI at Wisma Atria, SGREIT recognised positive   rental reversions and higher occupancy rates. While the near'term operating environment is likely to serve up greater challenges, the completion of its AEI at Wisma Atria should leave SGREIT be''er positioned in the current macroeconomic climate.

Trading at a forward dividend yield of 6.3%, according to Bloomberg consensus estimate, SGREIT continues to o'er a decent yield, particularly amid the current low interest rate climate. The company has a price'to'book ratio of 0.85.

NEWS BUZZ
Keppel Corp (S$11.58) 
Deliver wind turbine vessel early  
Keppel Corp's shipyard unit, Keppel Fels, will deliver the 'rst o'shore wind turbine installation vessel built in Singapore, more than a month ahead of schedule and with a good safety record.

CapitaMalls Asia (S$1.645) 
Issue $250m 'xed rate notes
CapitaMalls Asia's wholly owned subsidiary, CapitaMalls Asia Treasury, intends to issue unrated $250,000,000 3.7% 'xed rate notes due 2022 to institutional and/or sophisticated investors. It has priced the notes at face value and are expected to be issued on or about Aug 29. DBS Bank has been appointed as the dealer.

Guan Chong Bhd   
Secondary listing plan on hold  
Malaysia'listed cocoa processor Guan Chong Bhd has dropped its plan for a secondary listing in Singapore for now.

RH Energy (S$0.150) 
Invests 25m yuan in Beijing Egotech Petroleum
RH Energy has, through its wholly owned subsidiary Langfang Ruihua Petrochemical, invested 25mil yuan (S$4.25m) as registered capital in Beijing Egotech Petroleum Technology. Following the investment, the registered capital of Beijing Egotech will increase to 40mil yuan. The increase in the registered capital of Beijing Egotech is to provide funds for working capital for the company's existing businesses in China.
Source: The Business Times

Source: AmFraser