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

Re: Singapore - Commercial Properties & REITS

Postby winston » Wed Dec 12, 2012 4:22 pm

STOCKS NEWS SINGAPORE-Retail rents to fall 1-2 pct in 2013-DTZ

Retail rents in Singapore are expected to fall by about 1-2 percent next year, amid slowing retail sales, labour cost pressures and large supply coming onstream, said property consultant DTZ.

This year, only rents in suburban areas showed positive growth of 0.2 percent, while those in Singapore's main shopping belt on Orchard Road fell by 0.2 percent and by 1.5 percent in other city areas, DTZ said in a report.

Retail property landlords in Singapore include CapitaMalls Asia , CapitaMall Trust and Frasers Centrepoint Trust .

"With the difficulty in recruiting staff and the strong Singapore dollar, retailers are increasingly finding Singapore a less cost-effective place to set up presence in the region," said Anna Lee, DTZ's director of retail.

"Some of them have begun exploring options to expand operations in other countries which offer cheaper labour and rents, and a huge domestic demand base," Lee said.

However, DTZ said prices of retail properties continued to rise as lower interest rates attract investment. This year, the average capital value of prime resale retail units in Orchard and Scotts Road and the suburban areas rose 11.2 percent and 9.6 percent respectively. The divergence in rents and prices is expected to continue next year.

Source: Reuters
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Re: Singapore - Commercial Properties & REITS

Postby winston » Tue Dec 18, 2012 10:20 am

Singapore REITs - S-REIT valuations fair but ample liquidity should sustain interest.

Focus on those with acquisition drivers. Picks are MCT, MLT and FEHT.

After a year of yield-compression led outperformance in share prices, the S-REITs sector now trades at a weighted average FY13F yield of 5.8% and a P/BV of 1.13x.

While we believe the S-REITs are fairly valued at these levels, interest in the sector is likely to remain firm. This is because of the strong S$, a sustained low interest rate environment, and sector yields supported by yield spreads of 450bps above long bonds, which are still fairly decent.

This could mean that capital allocations within the S-REITs sector are likely to remain high.

With organic growth prospects looking modest and most SREITs trading above their respective NAVs, we believe that acquisitions will be a key theme in 2013.

We prefer S-REITs with the ability to make accretive acquisitions and see possibilities coming from the sponsored REITs given their visible pipelines and REITs with regional mandates.

Our picks are Mapletree Commercial Trust (TP: S$1.35), Mapletree Logistics Trust (TP: S$1.22) and Far East Hospitality Trust (TP: S$1.09).

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

Postby winston » Fri Dec 28, 2012 10:00 pm

Downtown Grade A office rent falls 0.9% in fourth quarter: Savills By Dennis Chan

AVERAGE rents of Grade A offices in the central business district (CBD) declined a modest 0.9 per cent in the fourth quarter, propped up by steady demand amid limited supply, said Savills.

The property consultant noted in a report today that the creme de la creme office space, also known as Grade AAA, in the Marina Bay precinct once again showed the highest quarterly drop of 3.4 per cent to $10 per square foot (psf) per month.

This takes the fall for top grade office space in Marina Bay to 14.9 per cent for the whole year.

On the other hand, other Grade A building rents softened by 3.3 per cent year-on-year on the back of healthy occupancy rates.

Source: Straits Times
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