Month: May 2007

 

CDL – BNP

CDL REITS, bnp remains a BUY with target price $2.28

– CDREIT, a BNPP Top Buy, will benefit from Singapore’s rising room rates over the next few years, driven by strong growth in tourist numbers but a limited supply of new hotel rooms. It plans to double its SGD846m portfolio over the next three years We maintain our BUY rating on this scarcely-covered stock, with a TP of SGD2.28.
– Robust 1QFY07 earnings growth . CDREIT posted a 37.8% increase in net property income of SGD16.7m in 1Q07. DPU was SGD0.0175 with an annualised yield of 3.8%. Overall occupancy rose from 78% in 1Q06 to 84% in 1Q07, while RevPAR rose 25.4% from SGD122 (ADR SGD157) to SGD153 (ADR SGD182) over the same period.


– Bold acquisition plans to drive DPU growth . CDREIT has a strong sponsor (Millennium and Copthorne) with a portfolio of 101 hotels globally. The management plans to double its existing portfolio (SGD846m) within the next three years, and intends to concentrate its acquisition efforts in the Asia Pacific and Middle East regions. We are confident that the management’s aggressive acquisition targets will underpin continual increases in DPU.

– Dynamic pricing underpinned by rising demand . Against the background of an improving tourism market, we believe stocks with leveraged plays in this segment could see further re-ratings in valuations, underpinned by higher RevPARs. The dynamics of revenue contribution in the hospitality segment are generally robust, considering that hotel operators respond very quickly to surging demand with higher room rates.

– Ascendant revision in hotel rates to drive DPU growth . CDREIT’s strong operating trends will continue to feed through to 2008. New supply of rooms are likely to be limited to only 2% in 2007 and 6% in 2008, with visitors growth estimated to grow by between 6-7% annually. We expect the ascendant revision in hotel rates to continue to drive DPU growth. Maintain BUY with a target price of SGD2.28.

May 5, 2007 CDL H-Trust No Comments »

CMT – GS

CAPITAMALL remains a BUY

– CMT said on Thursday that it has earlier received planning permission from the Urban Redevelopment Authority for Funan DigitaLife Mall to erect a 9 storey commercial building utilizing GFA of approximately 385,000 sf. CMT’s manager is, however, appealing to URA on an alternative waiver scheme so as to achieve a more efficient floor plate for the proposed development of an office block and to minimize disruptions to the retail tenants. We continue to have a positive bias on the stock, as CMT has shown a remarkable track record in generating incremental earnings growth from its portfolio of assets.


– Analysis . The addition of space at Funan has always been a possibility as CMT had during its IPO in 2002 said that this property, which was part of its initial portfolio, had unutilized GFA. We think given the existing shortage of CBD office space in Singapore, it is timely if CMT quickly brings on additional office space at Funan, which is located within the CBD. Assuming building efficiency of around 80%, we estimate the addition of space can generate some S$30 mn in revenue a year, almost 7% of our FY2007 forecasted revenue, on rentals of approximately S$8 psfpm. We do not see this addition of office space at Funan diluting the predominantly retail mall flavor of CMT. Also, we think this trust has enough debt capacity to fund the addition of new space even though the impending addition of 3 malls should raise the gearing for CMT from 37% to 41%.

– Implications. We await the details on the costs, timing and plans for the new office space at Funan and as such we put our earnings estimates and target price under review. We continue to like CMT’s top quality management plus its attractive organic and acquisition growth prospects. On current valuations, CMT trades at a 3.3% dividend yield. Risks include the inability to continue executing on growth via accretive acquisitions and an interest rate spike.


May 5, 2007 CMT No Comments »

CMT – Lim and Tan

Every Sq Ft Counts

May 4, 2007 CMT Comments Off on CMT – Lim and Tan

CMT – SGX
Funan DigitaLife Mall Receives Provisional Permission to Erect a Nine-Storey Commercial Building Utilising Additional Gross Floor Area of Approximately 385,000 Square Feet

Singapore, 3 May 2007 – We refer to the article “URA okays 1.3m sq ft office space” published in the Business Times on 28 April 2007. In CapitaMall Trust’s (CMT) Initial Public Offering (IPO) Circular dated 28 June 2002, it was stated that Funan DigitaLife Mall (previously known as Funan The IT Mall) had only utilised 3.861 of its allowable Gross Plot Ratio of 7.0 and has an unutilised Gross Floor Area (GFA) of about 385,000 square feet.

In order to maximise the unutilised GFA at Funan DigitaLife Mall, CapitaMall Trust Management Limited (CMTML), as manager of CMT, has submitted a planning application to the Urban Redevelopment Authority (URA) and has earlier received URA’s provisional permission to erect a nine storey commercial building and for additions and alterations to the existing Funan Digitalife Mall.

However, CMTML is appealing to URA on an alternative waiver scheme so as to achieve a more efficient floor plate for the proposed development of an office block and to minimise disruptions to the retail tenants. Further details will be provided in due course upon finalisation of details with the URA.

May 3, 2007 CMT Comments Off on CMT – SGX

MapleTree – BT

MapletreeLog in HK$780m HK property deal

MAPLETREE Logistics Trust has signed a conditional deal to buy a Hong Kong commercial property for about HK$780 million, or S$151 million. The acquisition, which is expected to be completed by June next year, is yield-accretive and has a pro forma effect on MapletreeLog’s distribution per unit for the financial year ended Dec 2006 of an additional 0.16 Singapore cents per unit. The properties include various warehouse units and carpark spaces, and a procurement agreement for 95 public lorry park spaces at Grandtech Centre in Shatin, New Territories.

The area is ‘a key cargo hub for China-linked businesses’ with ‘quick access via key railways and expressways to the Chinese border and the container port’, said Chua Tiow Chye, chief executive of MapletreeLog. He said the acquisition will be one of the trust’s top three in terms of revenue contribution. When all announced deals are completed, MapletreeLog’s portfolio value will reach $2.2 billion, up from $1.4 billion at the end of 2006, it said.

May 2, 2007 MLT Comments Off on MapleTree – BT