After a year of yield-compression led outperformance in share prices, the S-REITs sector now trades at a weighted average FY13F yield of 5.8% and a P/BV of 1.13x. While we believe the S-REITs are fairly valued at these levels, interest in the sector is likely to remain firm. This is because of the strong S$, a sustained low interest rate environment, and sector yields supported by yield spreads of 450bps above long bonds, which are still fairly decent. This could mean that capital allocations within the S-REITs sector are likely to remain high. With organic growth prospects looking modest and most SREITs trading above their respective NAVs, we believe that acquisitions will be a key theme in 2013. We prefer S-REITs with the ability to make accretive acquisitions and see possibilities coming from the sponsored REITs given their visible pipelines and REITs with regional mandates. Our picks are Mapletree Commercial Trust (TP: S$1.35), Mapletree Logistics Trust (TP: S$1.22) and Far East Hospitality Trust (TP: S$1.09).

Cosco Corp has secured a US$370m contract to build a floating production, storage and offloading (FPSO) unit. The order was made by a European client and will be delivered in June 2015. Measuring 78m in diameter and 32m in height, the FPSO will have a storage capacity of up to 400,000 barrels of oil.

SIA operating results for November 2012. In November 2012, Singapore Airlines' systemwide passenger carriage grew 9.1% against a 5.6% increase in capacity. Consequently, passenger load factor (PLF) improved by 2.5 percentage points to 77.7%. PLF improved for all regions except South West Pacific where growth in demand lagged the increase in capacity. The Americas region led the growth as demand was boosted by promotional activities. Passenger yields are likely to continue to come under pressure as a result of the challenging operating environment and promotional activities. Overall cargo traffic was 8.8% lower y-o-y, while cargo capacity was reduced by 11.4%. Consequently, the cargo load factor (CLF) in November 2012 increased by 1.9 percentage points. CLF was higher for all route regions, except East Asia, with better capacity management.

A fire outbreak at the premises of China Paper has destroyed the company's financial records. The financial records for FY2011 were destroyed by the fire, whereas the financial records for the first eight months of 2012 were partially damaged and the financial records for September to November 2012 were severely damaged. The company estimates that it will take approximately four to six months to reconstruct the financial records. As such, the company has informed its auditors of the situation and will discuss a possible delay to the annual audit for FY2012.

Asiatravel.com Holdings is proposing to undertake a bonus issue of up to 60.8m free warrants comprising one tranche of 30.4m Warrants and a second tranche of 30.4m, on the basis of one (1) Tranche 1 Warrant and one (1) Tranche 2 Warrant for every eight (8) existing shares held. The exercise price for tranche 1 warrant is S$0.245 while Tranche 2 warrant has an exercise price of S$0.273 per share.

United Engineersis acquiring 79 Anson Road for $410m or $2,029 psf. It plans to rename the 23-storey freehold office tower to UE BizHub Tower - subject to approval from the authorities. UE is buying the building from its two owners -Singapore's Central Provident Fund Board and German fund manager SEB. This will be UE's first commercial property in Singapore's Central Business District.

Developers here sold 44.2% fewer private homes in November compared with the month before, as they held back launches during the holiday season. 1,087 private homes, excluding executive condominiums (ECs), were sold last month, compared with 1,948 in October. November's sales figures were the lowest since December 2011. Compared with the same period last year, transactions fell 36.1%. The slump was largely due to a lack of major launches, market watchers said. For the first 11 months of 2012, developers moved 20,879 private homes (excluding ECs), adding to a record year. The previous mark for full-year sales was 16,292 units, set in 2010. The market expects 21,000-24,000 homes to be sold for the entire 2012. For ECs, 3,672 units were sold up to November, and some consultants expect full-year sales to cross the 4,000 mark.

Source: DBSV