Singapore - Comm Properties & REITS 02 (Jan 13 - Jan 19)

Singapore - Comm Properties & REITS 02 (Jan 13 - Jan 19)

Postby winston » Mon Jan 14, 2013 10:08 am

S-REITs: Go Selective On REITs; Neutral

The S-REITs has been one of the best performers in 2012 (39% price return in FY12). We DO NOT think that S-REITs will be able to repeat its stellar performance in 2012.

In our view, S-REITs will find it challenging to complete yield-accretive acquisitions in 2013, given that property prices in most segments are already past their 2008 peak levels.

We also see limited opportunities for further positive rental reversions (3-8% DPU upside per annum) as rentals face more downward pressure in 2013, following looming supply and softening of business sentiments.


2013 is probably a year of consolidation for S-REITs that will warrant further yield compression of at most 30-40bps, translating to a maximum of 6-8% upside. Given the high price-to-book of S-REITs (1.14x sector-wise), we downgrade S-REITs to NEUTRAL from OVERWEIGHT.

For greater upside, we see more prevailing opportunities in developers (especially local high-end and diversified big caps) tha landlords. We also see heightened risk of equity fund raising for S-REITs in asset enhancements, redevelopment projects or/and sponsor injections.

Selectively, our TOP picks remain with the more defensible Retail and Industrial REITs, namely Starhill Global (SGREIT SP, BUY, TP SDG0.85), Capitamall Trust (CT SP, BUY, TP SGD2.29) and Ascendas REIT (AREIT SP, BUY, TP SDG2.60), that can expect to benefit from near-term DPU upside with asset enhancements and ongoing redevelopment projects.

We will advise investors to shun the more cyclical Office and Hospitality REITs.

Source: Kim Eng

http://www.remisiers.org/cms_images/res ... 401131.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 01 (Oct 08 - Dec 12)

Postby winston » Wed Jan 30, 2013 6:23 am

Singapore's Slowing Office Growth to Boost Rents: Southeast Asia

Singapore's office rents are set to rebound from their first annual decline in three years as new supply shrinks and more businesses expand, according to the biggest office property trust in Asia outside of Japan.

Additional office space in the past two years came mainly from the downtown Marina Bay area, with banks including Standard Chartered Plc and Barclays (BARC) Plc taking bigger offices. Standard Chartered relocated from 11 buildings across the city to one tower in the new office area, while Barclays moved from six to two in the district.

Average gross rents of prime office space declined 11 percent in 2012 and could fall 5 percent to 10 percent this year, Colliers International said in a Jan. 25 report. Leasing rates climbed 14.6 percent in 2011, the property brokerage said.

New tenants took up 1.9 million square feet of space last year, a 17 percent drop from the five-year high of 2.3 million square feet in 2011, Colliers said.


http://www.bloomberg.com/news/2013-01-2 ... -asia.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 01 (Oct 08 - Jan 13)

Postby winston » Wed Feb 13, 2013 9:34 am

Office sector bottoming out

OUTPERFORM - Maintained
S$7.43
Tgt. S$8.52

--------------------------------------------------------------------------------

Office portfolio came in stronger, as negative rental reversions appear to have reached an end in FY12.

The company booked 2H12 revaluation gains on investment properties of S$165m.

Its slight earnings miss was due to weaker Pan Pac in 4Q12 post-renovations.

4Q/FY12 earnings were in line at 18%/95% of our full-year estimates but below consensus at 17%/88%.

We introduce FY15 estimates and tweak FY13-14 EPS on recognition timing.

We raise RNAV-based target price (40% disc to RNAV) on lower cap rates for office assets.

Maintain Outperform. The stock has lagged its peers and trades close to trough valuations. The bottoming-out story for the office sector is still in play.

Source: CIMB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 01 (Oct 08 - Feb 13)

Postby winston » Sat Feb 16, 2013 7:00 pm

Office REITs to be the most attractive within the S-REITs cycle.

As per all classes of properties, we believe REITs similarly undergo a cycle.

In our study, we identified the S-REITs sector to have undergone a full, four-stage cycle (by the end of GFC in end-2008). Currently, we believe this sector is at the second stage of a new four stages cycle.

Going forward, assuming interest rate and liquidity continue to be held at such levels, coupled with the current supply and economical fundamental of each sub-sector, we expect the rental rate of Grade A office to bottom and enter into a growth phase after 2H13; making this sub-sector one of the most rewarding in the medium to long term timeframe.

Within this space, we believe Suntec REIT (SUN SP; NEUTRAL; TP: S$1.80) is well positioned to benefit from it going forward.

Source: DMG

http://www.remisiers.org/cms_images/res ... Feb_13.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 01 (Oct 08 - Feb 13)

Postby winston » Thu Mar 21, 2013 9:04 pm

Singapore’s property trusts, were the best performers in Asia in the past year after Japan. Singapore REITs were the biggest fundraisers in the city’s initial public offering market in the past year, raising S$3.4 billion ($2.7 billion), or 68 percent, of the S$5 billion of stock sold in Singapore IPOs in the past 12 months, according to data compiled by Bloomberg.

The biggest share sale was the S$1.6 billion raised by Mapletree (MAGIC) Greater China Commercial Trust, a REIT that owns assets including the Festival Walk shopping mall in Hong Kong and an office complex in Beijing. The trust, which was also Asia’s biggest share sale this year, surged 12 percent from its IPO price.

Singapore REITs posted a one-year total return of 45 percent, trailing Japan’s 66 percent, according to data compiled by Bloomberg. The measure tracking REITs in Singapore climbed 29 percent in the past year, compared with the 8.8 percent increase in the Singapore benchmark Straits Times Index.

Source: Bloomberg
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 01 (Oct 08 - Mar 13)

Postby winston » Sun Mar 24, 2013 8:28 pm

Reiterate NEUTRAL for S-REITs following uninspiring risk-reward profile as:

(1) Yield spreads against ten-year bond yields continue to tighten with rising bond yields.
(2) Downward pressures on rentals with slowing growth in Singapore.
(3) Risk of asset-price declines in the event that monetary tightening is not conducted gradually (a case in point: Japan’s “lost decade” after the Finance Ministry sharply raised interest rates in late 1989).

Our top picks remain only with the Retail REITs, in which the mismatch between rentals and physical prices have not proved unnerving. Reiterate BUY for CMT (TP: SGD2.36), SGREIT (TP: SGD0.95), SUN (TP: SGD1.85).

http://www.remisiers.org/cms_images/res ... 203131.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 01 (Oct 08 - Mar 13)

Postby winston » Sun Apr 14, 2013 7:30 pm

Hot Singapore REITs Still Seen Offering Attractive Yields

If dividend stocks are sexy, Singapore’s real-estate investment trusts (REITs) just might be.

But while Singapore-listed REITs may seem expensive after a rally over the past year or so, they aren’t when compared with equities and bonds, says Tim Gibson, head of Asian property equities at Henderson Global Investors, which manages US$106.7 billion. “They should sit somewhere between the two.”

The FTSE ST REIT index tacked on 5.1 percent in the first quarter and was up 30.7 percent for the year ending 31 March.

REITs are generally required to pay out much of the income from their underlying properties as dividends. Gibson says S-REITs offer the highest yields, both on an absolute basis and compared with the country’s five-year government bonds.

While Australian REITs’ yields come close, the country’s bond yields are higher than Singapore’s, he says.

The yield on the FTSE ST REIT Index is around 5.17 percent, while the five-year Singapore bond yields around 0.5 percent and the Straits Times Index’s (STI) dividend yield is around 2.8 percent.

“As long as interest rates remain under control, S-REITs are in the sweet spot to continue their strong performance,” Gibson says.

Henderson’s new Global Property Income Fund will invest around 25 percent of its assets in Singapore-listed REITs, compared with 44 percent in the US, 9.5 percent in continental Europe and 5 percent in Japan.

S-REITs’ income is growing despite Singapore’s slowing economic growth, he says, partly because many are trading above their net asset values, meaning they can issue equity to finance acquisitions. Meanwhile, leases signed during the global financial crisis are now being renewed at higher rates and many S-REITs have begun buying assets outside the land-starved city-state, he says.

Gibson likes the office markets, citing the relatively low supply in Singapore and the length of time needed to create new supply. He tips Suntec REIT as one of the cheapest plays, offering a 5.5 percent dividend yield and an ongoing asset enhancement which should increase asset yield and cash flow. Henderson also holds CDL Hospitality Trusts.

Gibson says he is also positive on Singapore’s industrial REITs, whose offerings are sophisticated and multi-story.

http://www.sharesinv.com/articles/2013/ ... ve-yields/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 01 (Oct 08 - May 13)

Postby winston » Fri May 24, 2013 8:18 pm

Singapore REITs earnings edged up 6.7% to $924.9m

According to OCBC, in their latest assessment of the S-REITs sector, they continue to see familiar trends.

REIT managers have generally maintained firm growth in their trusts’ rental income, on the back of contributions from past acquisitions, completed developments/asset enhancement initiatives (AEIs) and improved operational performance.

In addition, positive rental reversions remained on the cards, while leasing demand has mostly been healthy.

Here's more from OCBC:

For 1Q13, we note that the sector as a whole delivered 6.7% YoY increase in NPI to S$924.9m, while DPU showed a 3.9% growth to 47.93 S cents.

On the subsector level, the retail REITs’ NPI performance was the strongest, followed by industrial REITs.

Only the office and hospitality REIT subsectors posted declines in their quarterly NPI. However, the former was dragged down mainly by soft results from Suntec REIT amid temporary closure of the Suntec City Mall for AEI works.

Leasing activity for the office segment has by far been resilient, with positive rental reversions achieved upon renewal of most of the leases.

http://sg.finance.yahoo.com/news/singap ... 00726.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 02 (Jan 13 - Dec 13)

Postby winston » Sat May 25, 2013 9:21 pm

Prudent to be selective

Nevertheless, the S-REIT index has been enjoying a good run-up, raking up 36.7% gain in 2012 and another 12.7% increase YTD.

Given that the S-REITs are now trading at a 24% premium to book value on average, we feel that it is prudent to be selective on S-REITs.

We continue to prefer S-REITs with good growth potential, strong financial position and compelling valuations (relatively lower P/B
and decent DPU yields). In this respect, we continue to pick CapitaCommercial Trust [BUY, S$1.80 FV], Fortune REIT [BUY,HK$8.64 FV]
and Starhill Global REIT [BUY, S$1.05 FV] as our preferred BUYs.

Reiterate our OVERWEIGHT view on the broader SREITs sector.

http://www.remisiers.org/cms_images/res ... 22-OIR.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Singapore - Comm Properties & REITS 02 (Jan 13 - Dec 13)

Postby winston » Thu May 30, 2013 7:57 pm

not vested

We saw a surge in short-selling in REITs names in Singapore yesterday, led by Sabana Shariah, Suntec REIT and CDL REIT.

This could exacerbate the down-side pressure on these names if the shortselling persists.


Source: Lim & Tan
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Next

Return to Archives

Who is online

Users browsing this forum: No registered users and 7 guests