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

Re: Singapore - Commercial Properties & REITS

Postby winston » Wed Jul 11, 2012 5:29 pm

Demand for office better than expected in 2Q12.

Despite the volatile global economy during 2Q12, the demand for office space in Singapore beat expectations with strong leasing performance and positive net absorption reaching 473,200 sf.

During 1H12, net absorption of office space in Singapore reached 1.06m sf; lowering vacancy rate to 8.4% and 6.4% for core CBD and island-wide respectively.

Although the demand for office space has remained strong during 2Q12, Grade A and Grade B rents declined by 4.7% (8.2% YTD) and 0.6% (2.1% YTD) respectively during this period, on the back of a highly competitive leasing market.

These corrections in office rental rates fall within our expectations, where we have previously forecasted a drop in Grade A office rents by 10-15% during 2012.

Going forward, on the back of limited new supply of Grade A office space for the rest of the year, we expect the downward adjustment of these office rents to stabilize.

On the other hand, due to additional second hand space (c.1.2m sf according to CBRE) to be released in the next 18 months, Grade B office rents is expected to remain weak in the coming months.

Source: DMG
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Re: Singapore - Commercial Properties & REITS

Postby winston » Tue Jul 17, 2012 9:17 am

Singapore Property - REITs 2H12 strategy – Key beneficiary of yield compression.

(CapitaMall Trust/BUY/S$1.945/Target: S$2.33)
(CDL HTrust/BUY/S$1.955/Target: S$2.21)
(MapletreeLog/BUY/S$1.00/Target: S$1.21)
(Suntec REIT/BUY/S$1.445/Target: S$1.67)

We maintain OVERWEIGHT on Singapore REITs, as we believe that yield compression to the long-term spread levels, still implies an over 35% capital upside on top of the 6.5% yields.

Prefer selected high-beta REITs balanced against high-yielding defensive REITs. We raise the target prices of the REITs by 5.7-13.2% mainly factoring in a 50bp reduction in the riskfree rate as yield compression sets in.

We prefer selected high-beta office and hospitality REITs for risk-on recovery play with Suntec REIT, CDL Hospitality Trust (CDREIT) as our top picks.

This is balanced against high-yielding defensive REITs in the retail and logistics space with CapitaMall Trust (CMT) and Mapletree Logistics Trust (MLT) as our preferred picks.


Source: UOBKH
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Re: Singapore - Commercial Properties & REITS

Postby winston » Wed Jul 18, 2012 9:17 am

Singapore REITs: Yield to the yields

We are reiterating our OVERWEIGHT view on the S-REIT sector, as most of the REITs have a positive outlook.

We continue to favour the industrial, retail, hospitality and healthcare REITs.

We are currently NEUTRAL on the office REITs.

Among the subsectors, we like S-REITs with strong financial positions, robust portfolios, strong track records and growth potential.

In this respect, we choose CACHE [BUY, FV: S$1.18], CDLHT [BUY, FV: S$2.04], and FRT [BUY, FV: HK$5.22] as our top picks for the sector.

Source: DBS
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Re: Singapore - Commercial Properties & REITS

Postby winston » Tue Aug 21, 2012 11:19 am

Singapore REITs – Switch to the right REITs

As our house advocated an OVERWEIGHT rating on the S-REIT sector throughout FY12, we saw the FTSE ST REIT index appreciate 22.7% YTD, versus the STI’s 15.7% gain, driven mostly by a flight to safety amidst macro uncertainties and a liquidity driven search for yield.

At this juncture when we are seeing prices taking new heights and gaining updated visibility for subsector outlooks, we ask investors:
Are you switching to the right REITs today?

We present three key ideas for investors with REITs portfolios:
1) Move to office REITs from local retail REITs - prefer CCT [BUY, FV: S$1.53] over CMT [HOLD, FV: S$2.04],
2) Stay in industrial REITs for yield – top pick is CACHE [BUY, FV: S$1.18],
3) Hospitality outlook is intact but rotate to ART [BUY, FV: S$1.34] from CDLHT [HOLD, FV: S$2.06].

Other BUY rated REITs include FCT [FV: S$1.89], SGREIT [FV: S$0.79], MLT [FV: S$1.19], FCOT [FV: S$1.23] and CRCT [BUY, FV: S$1.70].

Source: OCBC
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Re: Singapore - Commercial Properties & REITS

Postby winston » Mon Sep 03, 2012 12:55 pm

STOCKS NEWS SINGAPORE-Retail, industrial REITs most resilient - Maybank

Maybank Kim Eng said funds are not likely to switch out of Singapore real estate investment trusts (S-REITs) as there are not many investable alternatives in the market, and within this space, retail and industrial REITs are the most resilient.

There are a total of 25 S-REITs spanning the office, retail, healthcare, hospitality, industrial and residential sub-sectors.

Examples are CapitaCommercial Trust , CapitaRetail China Trust , Ascott Residence Trust and Ascendas REIT .

Maybank, which met 17 Hong Kong-based fund houses recently, said most clients view S-REITs positively as they have one of the highest yield spreads among their peers, outperforming even major REITs markets such as the United States, Australia and Japan.

S-REITs were currently trading at a 2012 fiscal year yield of 6.1 percent and a yield spread of 462 basis points (bps), Maybank said, adding that many funds believe there is headroom for another 80-90 bps compression.

Retail and industrial REITs appear to be the most resilient partly because retailers hold inventory and there are steady income streams backed by shopping for necessities, while industrial REITs are characterised by long lease tenures with rental escalation every year, Maybank said.

Source: Reuters
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Re: Singapore - Commercial Properties & REITS

Postby winston » Mon Sep 24, 2012 10:59 am

Investors’ hunt for yield will also likely continue with the extended low interest rates environment and uncertain global economic outlook.

Our picks among the S-REITs are Suntec REIT, Fraser Commercial Trust and Fraser Centrepoint Trust.


Source: DBS
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Re: Singapore - Commercial Properties & REITS

Postby winston » Mon Sep 24, 2012 5:49 pm

Grade A Raffles Place office rent dips 1.1% q-o-q in Q3: JLL By Kalpana Rashiwala

Property consultancy group Jones Lang LaSalle said Singapore office rents stabilised during the third quarter of 2012, bringing some optimism to the office market, which has been hit by weak demand since the EU debt crisis returned fear to the global economy a year ago.

According to JLL's data, the average gross effective rental value for Raffles Place (excluding Marina Bay) Grade A office space dipped 1.1 per cent quarter on quarter to $9.10 per square foot per month in the third quarter of 2012. This rate of decline is similar to the rate observed in Q2 2012, JLL said on September 24.

Average rents in the Shenton Way and Marina Centre submarkets similarly showed a "moderate decline" at 0.8 per cent and 1.3 per cent q-o-q respectively in the third quarter - almost half the 1.6 per cent and 1.9 per cent quarterly declines seen in Q2.

These numbers point to relatively stable market conditions.

http://www.businesstimes.com.sg/breakin ... l-20120924
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Re: Singapore - Commercial Properties & REITS

Postby winston » Wed Sep 26, 2012 5:00 pm

RENTAL DECLINES LIKELY SLOWING IN 3Q12

• Rental decline likely slowing in 3Q12
• Limited supply till 2H13
• Maintain OVERWEIGHT

Maintain OVERWEIGHT on Office REITs

We note that, since we have upgraded Office REITs to OVERWEIGHT on 21 Aug 2012, our top pick CCT has appreciated 4.0% against the
STI’s 0.2 gain%.

We maintain an OVERWEIGHT rating on Office REITs.

Our top picks in the sector are CCT [BUY, FV: S$1.53] and FCOT [BUY, FV: S$1.23].


Source: OCBC

http://www.remisiers.org/cms_images/res ... 26-OIR.pdf
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Re: Singapore - Commercial Properties & REITS

Postby winston » Thu Sep 27, 2012 9:10 am

not vested

Industrial REITs: Still hot on portfolio management activities

Summary: Industrial landlords continue to be very engaged in their capital management activities.

For 3Q to-date, we note that a number of industrial REITs have launched several debt facilities, where the proceeds will be used to refinance part of their existing borrowings.

This is in line with our view that the industrial REIT subsector’s debt maturity profile will remain healthy, with limited refinancing risks in the near term.

We also observe that there was a pickup in investment activity during the period. We estimate that the total subsector acquisition value for 3Q will be at S$182.9m. This significantly exceeds the S$66.0m acquisition size clocked in 2Q, albeit still lower than the S$678.2m value registered in 1Q.

We are currently maintaining our view that the subsector acquisition activity is likely to be skewed more towards smaller REITs.

Reiterate OVERWEIGHTview on the industrial REIT subsector. Cache Logistics Trust remains our preferred pick, given its robust portfolio, healthy financial position and attractive forward DPU yield of 7.1%.


Source: OCBC
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Re: Singapore - Commercial Properties & REITS

Postby winston » Tue Oct 09, 2012 10:20 am

Prime office rentals continue to slide in Q3 ,despite improvement in vacancies.

Grade A vacancies fell in Q3 to 6.8% from 7.9% in Q2, according to an industry report.

Overall Grade A rent in Q3 2012 fell 3.6% from the previous quarter to $9.13 psf.

The largest drops were recorded in the core CBD areas of Marina Bay and Raffles Place, where rents slipped by 2.5% and 3.9%, respectively.

Rentals in the City Hall and Marina Centre vicinity fell 1.8% in Q3 after remaining flat in the previous quarter.

Source: DBS
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