Champion REIT 2778

Champion REIT 2778

Postby winston » Fri Mar 13, 2009 11:33 am

DJ MARKET TALK: Daiwa Trims Champion REIT Target 11.3% To HK$2.12

1008 [Dow Jones] STOCK CALL: Daiwa trims Champion REIT (2778.HK) target to HK$2.12 from HK$2.39 on larger degree of uncertainty beyond 2010; keeps at Hold. Notes stock trading at 68% discount to FY09E NAV, yielding 13%-16% for next three years, based on house's forecasts.

Says FY08 DPU down 5.9% on-year at HK$0.32, due to substantial dilution from share placement during Langham Place acquisition; but DPU in line with house's forecast of HK$0.314.

Says despite weaker rental market outlook, still expects REIT's 2009 on-year rental income growth +25% on-year on spot-passing catch-up at Citibank Plaza, full-year Langham Place contributions. Notes occupancy at 98% at both buildings, only 10% of GFA to be renewed this year. But tips larger challenge for rents, occupancy in 2010 when about 50% of GFA up for review. Stock up 6.5% at HK$1.79.

Source: Dow Jones Newswire
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Re: Champion REIT 2778

Postby winston » Mon Mar 16, 2009 5:27 am

Dr Check and/or The Standard bear no responsibility for any investment decision made based on the views expressed in this column.

REIT fails to champion itself Monday, March 16, 2009

Dr Check does not understand why Champion REIT (2778), paying 19 percent in dividend yield, is still failing to attract investors.

As at December 31, 2008, its total revenue rose by 92.4 percent to HK$1.61 billion on the back of higher rental levels at Citibank Plaza and the addition of Langham Place since June.

Occupancy in Citibank Plaza was steady at 97.9 percent. Spot rental rates stood around HK$120 per square foot. Average passing rent rates (the average rental rate of existing contracted tenancies) rose significantly to HK$87.46 psf.

Langham Place's reputation as a quality project and its prime location has allowed the office tower to compete effectively for tenants.

Its year-end occupancy rate reached 98.3 percent. The spot rent for office space was between HK$32 and HK$40 psf throughout the second half of last year.

The number of visitors to Langham Place mall jumped by 28 percent year on year in 2008. The mall remained almost fully let throughout the period with the occupancy rate hitting 97.7 percent and the average passing rent rate of the mall rising to HK$88.90 per lettable square foot.

Some argued that the high dividend payout was related to interest rate swaps. But the firm's recent annual report shows all derivative positions were unwound when acquiring Langham last year.

In other words, a high dividend yield is possible in coming years. With net asset value of HK$5.37, the stock is selling at HK$1.66, or a 69 percent discount. It looks attractive.
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Re: Champion REIT 2778

Postby winston » Fri Jul 24, 2009 8:39 am

Not vested. From Dr. Check, The Standard HK:-

Let us focus today on Champion REIT (2778), whose rental income comes mainly from Citibank Plaza in Central and Langham Place in Mong Kok. As of December 31, Champion REIT's total revenue had soared 92.4 percent to HK$1.61 billion from a year earlier.

Occupancy in Citibank Plaza is steady at 97.9 percent. The average rental rate is HK$87.46 per square foot.

Langham Place Office Tower's occupancy rate reached 98.3 percent at year's end. The spot rent had ranged between HK$32 and HK$40 psf during the second half of last year. And occupancy at Langham Place Mall reached 97.7 percent, with an average rent of HK$88.90 psf.

A high dividend yield of 11 percent can be maintained. Champion REIT closed at HK$2.80 yesterday. This is another stock you may want to focus on when the price slips
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Re: Champion REIT 2778

Postby stilicon » Fri Jul 24, 2009 5:34 pm

17.06.2009 04:22:25 - MARKET TALK: Citi Raises Champion REIT Target 20.1% To HK$3.05

0222 GMT [Dow Jones] STOCK CALL: Citigroup raises Champion REIT (2778.HK) target to HK$3.05 from HK$2.54, mainly on lower interest costs, lower discount rates; raises 2009-10 earnings estimates by 7%-9%.
Keeps at Buy. "While we expect office rentals for Champion to remain under pressure, we believe that it is more or less in the price." Adds, current ample liquidity to keep HK interest rates low, should benefit Champion REIT via higher capital value for its properties. Says low interest rates should help boost REIT's distributions on reduced interest costs, help alleviate debt refinancing concerns. Says despite assuming REIT's office portfolio rentals to fall 30%-40% in 2008-10, 20% drop in Langham Place Shopping Mall rentals, still forecasts 2009-10 dividend yields at 8.1%, 6.6%; views as attractive vs savings deposit interest at about 0.01%.
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Re: Champion REIT 2778

Postby winston » Fri Aug 07, 2009 7:40 am

REIT income surges 162pc

KathyWang, The Standard HK

Champion Real Estate Investment Trust (2778) reported a HK$609 million distributable income for the first half this year, up 162 percent year-on-year.

Total distributable income amounted to HK$621 million in the second half of 2008. The company noted it acquired Langham Place last June, making the second half of last year a more relevant comparison to its performance during the first six months of this year.

Distribution per unit in the first half was 13.14 HK cents, versus 13.94 HK cents in the second half of last year.

Gearing ratio dipped 2.7 percent to 33 percent from 36 percent.

The REIT sees the pace of rental downturn in Central decelerating and demand for office space stabilizing.

But chairman Lo Ka-shui said: "Unless there is a substantial rebound in demand in the short term, a double-digit vacancy rate at Citibank Plaza is expected by the end of 2009 ... We are therefore expecting to see lower income from Citibank Plaza for the second half of 2009 and also 2010."

Chief executive Adrian Lee Ching- ming said although the rental income from Langham Place could rise, it may not be enough to offset the decline from Citibank Plaza.

Champion REIT's property portfolio was valued at HK$43 billion by June 30, up 7.5 percent from second-half 2008.
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Re: Champion REIT 2778

Postby winston » Mon Jan 18, 2010 7:28 am

Not vested. From Dr. Check, The Standard HK:-

For defensive plays, check Champion REIT (2778), a real estate investment trust formed primarily to own and invest in office and retail properties.

Its rental income comes mainly from Citibank Plaza in Central and Langham Place in Mong Kok.

As of June 30, Champion REIT's total revenue rose 3.1 percent to HK$1.03 billion. The firm distributed HK$676 million as dividends. Citibank Plaza occupancy was steady at 94.9 percent. The average rental of existing contracted tenancies was HK$90.49 per square foot. Langham Place Office Tower's occupancy rate reached 97.9 percent. The spot rent for office space was HK$30 psf on average.

Occupancy at Langham Place Mall is a very high 99.7 percent and the average rent has risen to HK$87.28 psf.

The stock is still attractive as it offers a dividend yield of 9.5 percent.

http://www.thestandard.com.hk/news_deta ... 00118&fc=1
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Re: Champion REIT 2778

Postby winston » Tue Feb 23, 2010 5:58 am

REIT readies for downturn after robust year by Mandy Lo

Champion Real Estate Investment Trust (2778) has warned that 2010 revenues are unlikely to repeat those of last year due to higher vacancies and reduced rents at its Central office property developments.

For the year ended December 31, the REIT's total distributable income grew 26.5 percent to HK$1.31 billion, but total distribution shrank 11.8 percent from 2008 to HK$1.24 billion as the company intended to hold more cash amid market uncertainties.

"We prefer to keep more cash and are looking for acquisition opportunities.

"However, it is not the best timing to act now when there are signs of bubbles in the property market," said Adrian Lee Ching- ming, chief executive at Champion's manager, Eagle Asset Management.

Distribution per unit declined 17.8 percent to 26.17 HK cents.

Net property income hit HK$1.71 billion and revenue jumped 26.1 percent to HK$2.04 billion.

The occupancy rate at Citibank Plaza, an office property which generated two-thirds of total income, fell to 87.2 percent as at December, a record low since the REIT came into being 2006. Lee said the occupancy rate may stay low this year as it takes time to fill office space while financial sector gradually recovers and eventually starts expanding.

About 15 percent of tenants will have to renew leasing contracts this year, he said.

Langham Place, a commercial complex in Mong Kok, posted rosy performance numbers, the shopping mall was fully occupied and offices enjoyed a 98.5 percent occupancy rate.

Forty three percent of tenants at the mall will have to renew leases this year and Lee expected a double-digit growth in rents. About 36 percent of leases at Langham office will expire this year.

Shares of Champion REIT slid 0.297 percent to HK$3.36 yesterday.

http://www.thestandard.com.hk/news_deta ... 00223&fc=2
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Re: Champion REIT 2778

Postby winston » Fri Feb 26, 2010 7:31 am

Not vested. From Dr. Check, The Standard HK:-

In January, I mentioned that if you had plenty of cash, invest in Champion REIT (2778) to benefit from its attractive dividend yield. At that time, the stock hovered around HK$3.20. Yesterday it closed at HK$3.50.

Champion just announced it will distribute 13.13 HK cents per share. If you had bought Champion and do not want to wait until April 19, the ex-dividend day, then you can take profit by selling the stock.

As for the local market, I expect the HSI next month to either clear 21,000 and resume an upward trend or fall below 19,500 and trigger a sell-off.

I don't have a crystal ball to see which direction it will go, but I am worried the situation in Europe may worsen.

So until the dark clouds clear, it is better to hold more cash.

( Hmm... sounds like Dr. Check has turned bearish from bit quite bullish while I'm initiating positions from being very bearish. Maybe we may will meet somewhere in the middle :D )

http://www.thestandard.com.hk/news_deta ... 00226&fc=8
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Re: Champion REIT 2778

Postby winston » Tue Aug 17, 2010 3:37 pm

Not vested

DJ MARKET TALK: Champion REIT Off 3.1%; 1H Below Expectations-JPM

1454 [Dow Jones] Champion REIT (2778.HK) down 3.1% at HK$3.74, likely due to post-results profit-taking (stock +5.5% over past month vs HSI's 0.2% rise in same period).

JPMorgan notes 1H results below expectations, with distributable income coming in at HK$574 million (down 15.1% on-year), which 3.7% below house's estimate.

Notes, discrepancy mainly attributable to higher-than-expected operating expenses-to-income ratio, while decline in rental income from Citibank Plaza was due to negative rental reversion.

"As the timeline to lower the vacancy level at Citibank Plaza to a more comfortable level is uncertain, we revise our occupancy level assumption for FY11 down to high-80% from low-90%."

Accordingly, house cuts FY11E DPU forecast to HK$0.20 vs HK$0.203. Raises target to HK$3.74 vs HK$3.18 after rolling over to target base time-frame to June 2011. Keeps at Neutral.

Source: Dow Jones Newswire
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Re: Champion REIT 2778

Postby winston » Tue Dec 07, 2010 8:59 am

Not vested. From Dr. Check, The Standard HK:-

I recommended the REIT at HK$3.30. So far this year, it is up 36 percent and shareholders got another 6 to 8 percent in dividend yield, depending on the buy price.

Yesterday, it closed at HK$4.50. The REIT's rental income mainly comes from the Citibank Plaza, Central.

It also owns Langham Place, the Mong Kok landmark. Visit Langham Place Mall and see for yourself its 100 percent occupancy rate in the crowded shopping district.
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