Suntec REIT

Re: Suntec REIT

Postby winston » Mon Oct 26, 2015 2:21 pm

vested

Results were in line with our expectations as Suntec REIT announced 3Q/9M15 DPU growth of 8.3/6.3% YoY, accounting for c.74% of our full year estimates.

We maintain our SELL recommendation with an unchanged target price of SGD1.31, since we remain cautious as Suntec REIT faces more than 40% of its total office space for lease renewal in the next 2 years.

In addition, we note that the overall passing rent for Suntec City AEI has declined to SGD12.03psf/mth, or 4.4% below its initial target.

Source: RHB
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Re: Suntec REIT

Postby winston » Thu Nov 05, 2015 10:26 am

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Suntec REIT: Acquisition and leaseback of strata floors in Suntec Tower Two

Suntec REIT announced that it had entered into a sale and purchase agreement with Maybank Kim Eng Properties Pte Ltd to purchase and leaseback three floors of strata office space at Suntec Tower Two.

The purchase consideration amounts to S$101.6m (total acquisition outlay estimated to be S$105.7m), and is expected to generate a NPI yield of ~3.9%, which is higher than the NPI yield of 3.2% achieved in 2014 for Suntec REIT’s portfolio.

The estimated transaction price of ~S$2,605 psf NLA appears fair, in our view.

A day prior to this announcement, Suntec REIT also said that it had launched and priced S$105m 2.83% notes due 2018 under its US$1.5b Euro Medium Term Note Programme.

We believe the proceeds of this issuance would be used to finance the above mentioned acquisition.

Maintain HOLD and S$1.50 fair value estimate on the REIT.

Source: OCBC
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Re: Suntec REIT

Postby winston » Wed Dec 02, 2015 6:47 pm

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Time: 4:37PM
Exchange: SGX
Stock: Suntec Reit(T82U)
Signal: Resistance - Breakout with High Volume
Last Done: $1.575

Source: UOBKH
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Re: Suntec REIT

Postby winston » Wed Jan 27, 2016 10:07 am

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Share Price: SGD1.51
Target Price: SGD1.40
Recommendation: Sell

Narrow yield not justified

We lift our FY16-17 DPU by 5.1%/2.4% and raise our TP to SGD1.40 (from SGD1.33), based on unchanged FY16E target yield of 7.25%.

Maintain SELL.

We believe the REIT’s narrow trading yield is not justified as it includes significant capital distributions that do not reflect the underlying performance of its properties.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/C ... 3e9c48.pdf?
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Re: Suntec REIT

Postby winston » Wed Jan 27, 2016 10:54 am

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Suntec REIT: 4Q15 beat on higher distribution from capital

Suntec REIT reported 4Q15 gross revenue of S$87.5m, representing an increase of 13.9% YoY.

DPU jumped 6.7% YoY to 2.75 S cents, exceeding our expectations.

However, the beat came largely because of a distribution from capital (0.332 S cents per unit).

One of the concerns we had was the significant amount of office leases expiring in 2016 for Suntec REIT’s portfolio.

We note that while progress has been made, we believe there are still downside risks ahead.

On the retail front, overall committed passing rent for Suntec City Mall appears to have stabilised at S$12.04 psf/month (flat QoQ), while 98% committed occupancy has been achieved.

Nevertheless, Suntec REIT still has 27% of its retail NLA which is expiring in 2016.

We make some minor tweaks to our FY16 forecasts, and introduce our FY17 projections.

Rolling forward our valuations, we derive a slightly higher fair value estimate of S$1.51 (previously S$1.50).

Maintain HOLD as we see limited potential upside at this juncture.

Source: OCBC
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Re: Suntec REIT

Postby winston » Wed Jan 27, 2016 12:03 pm

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Suntec REIT (SUN SP, SELL, SGD1.31)

Further Downside Risk In Office Renewals

Results Review

4Q15/FY15 results were within our expectations, while we note that its retail portfolio has stabilised.

However, we maintain SELL with a SGD1.31 DDM-derived TP (13% downside), implying 0.61x FY15 P/BV.

We are cautious on Suntec REIT mainly due to its high exposure to office space.

Also, we highlight that more than a third of its office portfolio would be facing renewal in the next two years, which would post further declines in office rent rates.

Source: RHB

http://rhb.ap.bdvision.ipreo.com/NSight ... 4dcf7be109
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Re: Suntec REIT

Postby winston » Fri Apr 22, 2016 8:19 am

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Unwavering against headwinds
SUN SP / SUNT.SI | HOLD - Maintained | S$1.75 tp:S$1.67
Mkt.Cap:US$3,279.00m | Avg.Daily Vol:US$5.75m | Free Float:92.60%


1QFY16 DPU of 2.37 Scts (+6.3% yoy) was largely within consensus and our expectations, forming 23% of our FY16F estimate.

Distributions were boosted by capital distribution of S$4m from the sale proceeds of Park Mall, confirming our view that SUN’s DPU profile should be stable.

Retail: actively renewing leases for Suntec City Phase 1. Office operating metrics worse off than retail.

Headwinds counterbalanced by resolution to keep dividends steady. Maintain Hold with a slightly higher DDM-based target price of S$1.67.

Source: CIMB
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Re: Suntec REIT

Postby winston » Fri Apr 22, 2016 9:11 am

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Suntec REIT: Valuations appear rich, downgrade to SELL

Suntec REIT’s 1Q16 results were within our expectations. Gross revenue came in at S$78.3m, representing an increase of 5.2% YoY, while DPU grew 6.3% to 2.371 S cents.

This was boosted by a distribution from capital of S$4.0m (~0.158 S cents per unit). Excluding this, Suntec REIT’s distribution from operations would have declined marginally by 0.8%.

Although management successfully renewed and replaced ~225k sq ft of office leases during the quarter, we believe risks remain.

Following Suntec REIT’s 12.6% share price appreciation YTD, we believe valuations now appear stretched, with the stock trading at 5.8% FY16F distribution yield.

This is close to half a standard deviation below its 5-year average forward yield of 6.1%, at a time when headwinds are plaguing both the retail and office sectors. Hence we are downgrading our rating on Suntec REIT from ‘Hold’ to SELL, with an unchanged fair value of S$1.51.

Source: OCBC
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Re: Suntec REIT

Postby winston » Fri Jul 22, 2016 9:19 am

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Suntec REIT: Take profit on rich valuations

Suntec REIT’s 2Q16 gross revenue declined 3.1% YoY to S$78.9m. DPU was flat at 2.501 S cents, and was boosted by a distribution from capital amounting to S$8m (0.316 S cents per unit).

Results were in-line with our expectations. Suntec REIT proactively managed its lease expiry profile during the quarter, bringing down both its office and retail lease expiries for the remainder of the year. However, committed portfolio passing rents continued to soften.

We raise our fair value estimate on Suntec REIT to S$1.54 (previously S$1.51), as we factor in a lower risk-free rate assumption of 2.4% (previously 3.0%) in our model.

Nevertheless, we maintain our SELL rating as we believe valuations remain rich.

Suntec REIT is trading at 5.6% FY16F distribution yield, which is more than half a standard deviation below its 5-year average forward yield of 6.1%.

Source: OCBC
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Re: Suntec REIT

Postby winston » Sat Aug 13, 2016 12:54 pm

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Moody's Investors Service changed its outlook on Singapore-listed Suntec Real Estate Investment Trust to negative on Tuesday after it proposed to buy a stake in a Melbourne property and fund the acquisition with debt.

Source: Straits Times
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