Starhill Global ( former McQ Prime )

[tonylim]

Believe the new lease will increase the DPU tremendously , because it is of no secret that retail rent in NAC command even up to S$45.00 psf for good location units.

[Aspellian]

but Toshin being a huge anchor tenant is able to get lower rental rates... unlikely need to pay as high as $45 psf... could be closer to $20+psf

[tonylim]

But do Starhill need a anchor tenant to do the subletting job ? The actual space used by Toshin for its retail biz is rather small, most are subletting out to sub-tenants, especially at the basement level for food operators.
Starhill management can take all back and do it on its own.
This is just my H.O.
Cheers.

[winston]

not vested

Great Singapore Sale starts here

• Higher contribution from Wisma Atria in the 2H and upward rental reversion from Malaysia master tenant lease to boost DPU by at least 8%

• No overhang from CPU with minimal dilution of 0.4 - 1.2%

• Maintain BUY, TP raised to S$0.75


Compelling valuations with total return of 26%.

We see strong organic growth outlook for SGReit’s portfolio, backed by stable income derived from master tenants.

SGReit stands out for its compelling valuation of 0.7x P/NAV and attractive FY12/13F yields of 6.7-7.2% in the small mid cap REIT space.

We have raised our DCF-backed TP by 5.6%and FY12/13 DPU slightly to account for Wisma Atria’s stronger performance.

Our revised TP offers investors a total return of 26%.

One-off adjustment from Toshin’s lease.

Under the lease agreement, Toshin is the master tenant occupying the retail areas from basement two to level four of the retail portion at
SGReit’s Ngee Ann City, which contributes about 19% of the portfolio revenue.

Under the existing terms of Toshin’s lease, the rent review on June 2011 provided for an only upward rental reversion mechanism, capped at 25%.

While we note that negotiation of rental reversion for June 2011 is still ongoing due to a dispute on the determination of the market rents, we note that the rents will be adjusted retrospectively from the date of commencement of the next rental term upon the determination of market rents.

We have not factored the rental upward reversion in our numbers.

Assuming a 10% rental upside, we estimate that the reit could recognise a one-off gain of S$4.6m from the accumulated arrears of rents accrued between June 2011 to Dec 2012 in FY13. This would raise FY13/14F DPU by 11%/6.3% and translate to higher F13/14F yield of 7.9%, up from the current 7.2%.

http://www.remisiers.org/cms_images/res ... 2_buy_.pdf

[winston]

not vested

What we recommend

We reaffirm our Buy (1) rating for SGREIT as we continue to see deep value, trading at a 29% discount (one of the widest in the S-REIT
sector) to its NAV of S$0.87, as at 31 March 2012.

We also see potential upside catalysts from stronger-thanexpected revenue growth post-AEI at WA and a favourable ruling (and rent increase on the rent review) on its Toshin lawsuit.

We maintain our target price of S$0.75, pegged to parity with our finite-life Gordon Growth Model valuation.

The major risk to our positive call would be any REIT-specific or external factor that undermines the resilience of its DPU.


Source: Daiwa

[tonylim]

Share price strenghten with high volume, something up ?

[winston]

not vested

YTL Starhill Global REIT Management Limited (the “Manager”), the manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”) wishes to announce that it will release Starhill Global REIT’s financial statements for the second quarter 2012 and first half year ended 30 June 2012 on Tuesday, 24 July 2012 after market close.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[winston]

Vested

Some notes for myself:-

1. I sold this counter a long time ago, thinking that I was smart enough to buy it back at a lower price. Instead it kept on going up. And now, I'm buying it again, close to it's range high

2. Yield : 6%

3. RNAV: Sin$0.96

4. Gearing 30% ( Not much of a problem now, with YTL providing the support )

5. PE: 13 ( Not so relevant but it gives one a feel of it's Valuation )



Risks:-

1. How's Renhe Spring Zongbei, Chengdu ? ( 9.8% Turnover )

2. Rights issued at 0.35 ( Have they sold already or are they still sitting on their 100% profit ? )

3. Currencies Risk ? JPY, RMB, MYR, SGD, AUD

4. Rentals down ?

5. Target Price of Sin$0.70 reached. Now what ?


What other stuff have I missed ?

[winston]

vested

HIGHLIGHTS

• 2Q 2012 NPI increased 4.4% over the corresponding quarter to S$37.1 million. mainly due to the stronger performance of the Singapore property portfolio.

• 2Q 2012 DPU of 1.08 cents, representing an increase of 3.8% over 2Q 2011 despite ongoing redevelopment work at Wisma Atria.

• Committed occupancy rate for the portfolio remains strong at 99.5% in 2Q 2012 on strong demand for properties in quality locations.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement


Presentations:-

http://info.sgx.com/webcoranncatth.nsf/ ... penelement


Financials:-

http://info.sgx.com/webcoranncatth.nsf/ ... penelement

[tonylim]

Wisma Atria AEI contributes more than 12% ROI instead of 8% which was originally predicted.