Capitaland 01 (May 08 - May 10)

[LenaHuat]

Thanks a million too, iam802.
I've a feeling that this is a suckers' sell-off which means I won't be able to pick it up @2/80

[LenaHuat]

I'm convinced that this market is a suckers' sell-off to trap novices into dumping their stocks.
Will wait for another opportunity, most likely at year-end.

[LenaHuat]

The Edge's drumming up CapitaLand's development projects in China. LML has a much younger team in the stable now and I wonder if they would be up to the tasks.

[winston]

So the story is back to China now ? A while back it's was the Vietnam's growth story ..

[helios]

The Edge's drumming up CapitaLand's development projects in China. LML has a much younger team in the stable now and I wonder if they would be up to the tasks.

Yeah, Lena Jie.

I saw the article too; interest reading.

let's wait till Q4 for entry.

[Aspellian]

So the story is back to China now ? A while back it's was the Vietnam's growth story ..

talked to capitaland's economist in some event - he mentioned that Vietnam is their LONG-term growth story. Vietnam to capitaland is what China was 10 years ago.

[millionairemind]

Published July 28, 2009

CapitaLand answers A$281.6m cash call
Australand posts first-half loss, to raise A$475m from rights issue

By EMILYN YAP

(SINGAPORE) CapitaLand will inject A$281.6 million (S$333.1 million) into Australand by taking up its full entitlement in the Australian property unit's A$475 million rights issue.

Sydney-based Australand - which yesterday posted a first-half net loss of A$268.8 million - says the proceeds will strengthen its balance sheet amid a challenging second half. It is the company's second rights issue in about a year.

The exercise will 'provide additional headroom against the covenant limits of Australand's debt facilities, sufficient liquidity to meet all anticipated funding requirements over the next two years and (to) take advantage of selective opportunities in a disciplined manner', Australand said.

To raise A$475 million - comprising A$380 million from an institutional tranche and A$95 million from a retail tranche - Australand is making a seven-for-10 non-renounceable pro-rata entitlement offer of new stapled securities at A$0.40 apiece. The offer price is a 20 per cent discount to the last closing price of A$0.50 on July 24.

CapitaLand, which has a 59.27 per cent stake in Australand, will take up its full entitlement for A$281.6 million cash. It does not expect its subscription or the rights issue to materially affect its net tangible assets per share or earnings per share for the financial year ending Dec 31. Its effective interest in Australand should stay the same.



'The current weak environment in Australia is largely the result of uncertainties in global financial markets,' CapitaLand said. It believes Australand - a 'strategic business unit' - will benefit from Australia's future economic growth.

The rest of the rights issue is fully underwritten by JP Morgan Australia and UBS Australia. The proceeds would have lowered Australand's pro forma gearing at June 30 from 39.8 per cent to 27.6 per cent.

In September last year, Australand raised A$461 million through a rights issue. CapitaLand also took up its full entitlement in that exercise.

Australand announced the latest fund-raising with its financial results yesterday. For the half-year ended June 30, the company incurred a net loss attributable to stapled security holders of A$268.8 million - reversing a net gain of A$25.6 million a year ago.

This followed a 29 per cent year-on-year fall in revenue from continuing operations to A$311.3 million. Results were hurt by unrealised losses from property revaluations amounting to A$235.3 million, and impairments to development and joint venture inventories of A$93.5 million after tax, which Australand warned about last week.

Australand expects the rest of the year to be challenging and has downgraded its performance guidance. It expects its full-year operating profit after tax - excluding unrealised revaluations gains or losses, impairments and the impact of the rights issue - to be 35 per cent lower than last year, not 30 per cent as previously thought.

It will pay an interim distribution of A$0.03 per stapled security for the half-year ended June 30. There could also be a final distribution of A$0.02 per stapled security for the year ending Dec 31.

CapitaLand shares lost three cents yesterday to close at $3.94. Trading in Australand's shares will resume tomorrow, after a two-day trading halt at the company's request.

[winston]

Do you know what you are buying ?

CapitaLand posts first quarterly loss since 2003

SINGAPORE, July 30 (Reuters) - CapitaLand , Southeast Asia's biggest developer, on Thursday posted its first quarterly loss since 2003 due to writedowns on investments and said the outlook for 2009 was uncertain.

CapitaLand, which is 40 percent held by Singapore state investor Temasek [TEM.UL], reported a net loss of S$156.9 million ($108.4 million) for the three months ended June 30 compared with a net profit of S$515.2 million a year earlier.

Its bottomline was hit by writedowns and impairment charges at Australian unit Australand , as well as the drop in the value of real estate held by Singapore property trusts CapitaCommercial Trust and CapitaMall Trust .

"Although some stability has been restored in the financial markets, the outlook for 2009 remains uncertain," CapitaLand Chairman Richard Hu said in a statement.

Excluding revaluations and impairments, CapitaLand said it made a net profit of S$124 million for the quarter.

[LenaHuat]

Writedowns have been expected. CapitaLand revalues (and hence correspondingly should "devalue") their property portfolio every quarter.

[winston]

Not vested. Dont have much luck with this counter ever since it's DBS Land days...

CIMB say short Capitaland. Long OCBC...

==================================================

Frm CIMB:-

Capitaland Ltd (S$3.99) – 2Q09 results -Taking a big bath

In line. 2Q09 core net profit of S$124m forms 31% of our full-year forecast and consensus. Revenue fell 28% yoy to S$591m on poorer sales in Australia and the timing of sales recognition in Singapore

Cautious optimism on China. The segment that stood out again was China. Revenue from its China Holdings grew 45% yoy to S$158m on robust home sales in Beijing, Foshan and Ningbo. CapLand sold 1,163 units in 1H09, exceeding FY08 sales of 782 units. However, ASPs were still below 2007 levels, albeit 10% higher yoy. We were more aggressive, assuming ASPs closer to peak levels. Management acknowledges that Chinese officials are looking closely into property lending growth.

Taking a big bath. CapLand booked net impairment charges and revaluation losses amounting to S$284m in 2Q09. Notable revaluation losses were booked for Char Yong Gardens (S$49m) and One North Project (S$109m), while mark-downs for CCT, CMT and Australand are old news. We suspect this marks the start of more impairments to come. A notable revaluation gain of S$358m (S$3,800psf) came from ION Orchard. All in, 2Q09 NTA/share fell from S$2.86 to S$2.73. Net gearing also rose from 0.32x to 0.43x, back to pre-rights issue levels in 4Q08.

Searching for next leg. While the mood during the briefing was more upbeat than during the last round, CapLand signalled its uncertainties over the sustainability of current selling prices in Singapore. Nevertheless, it plans to launch Gillman Heights in 2H09 to capitalise on pent-up demand. In China, CapLand intends to inject another S$500m into property investments. However, plans to monetise assets through IPOs and/or injections into CRCT are still in the infancy stage.

Hefty premium to RNAV unwarranted; maintain Underperform. We lower our FY09 core EPS estimate by 28% but raise our FY10-11 estimates by 29-38% as we defer recognition of some Singapore presales. We lower our end-CY10 RNAV estimate from S$3.06 to S$2.86 on lower asset-value estimates and dilution from the CBS issued (adjusted for rights issue). Our target price, however, rises from S$3.06 to S$3.44 on a 20% premium to RNAV (vs. parity previously) to account for its scale of operations and exposure to a booming China. The stock is expensive in our view, trading at a 40% premium to our RNAV or 1.5x P/BV post-write-downs. Maintain Underperform.