Month: July 2007
Suntec – SGX
SUNTEC REIT ACQUIRES STATE LAND ALONG PENANG ROAD
Singapore, 30 July 2007 – ARA Trust Management (Suntec) Limited (“ARA Suntec”), the
Manager of Suntec Real Estate Investment Trust (“Suntec REIT”), is pleased to announce the acquisition from the State today, a strip of land of about 1,261 square metres (13,572 square feet) along Penang Road, at a land premium of S$14.5 million for amalgamation with Park Mall to create an additional floor area of 5,825 square metres (62,704 square feet) for the property.
The total acquisition cost of the land amounted to S$15.9 million. With the additional floor area, the total permissible gross floor area for Park Mall will increase to 41,492 square metres (446,622 square feet).
Mr Yeo See Kiat, Chief Executive Officer of ARA Suntec, said, “The acquisition of the
subject land and the creation of the additional floor area would enable us to implement a more comprehensive asset enhancement program for Park Mall, which would significantly add value to the REIT and our unitholders. Details of the asset enhancement program will be unveiled in due course.”
Source : SGX
Suntec – SGX
SUNTEC REIT TO ACQUIRE ONE-THIRD STAKE IN ONE RAFFLES QUAY
ASSETS UNDER MANAGEMENT INCREASES TO S$4.81 BILLION, OFFICE PORTFOLIO TO 1.82 MILLION SQUARE FEET
Singapore, 30 July 2007 – ARA Trust Management (Suntec) Limited (“ARA Suntec”), Manager of Suntec Real Estate Investment Trust (“Suntec REIT”), is pleased to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of Suntec REIT, has entered into a conditional share purchase agreement with Cavell Limited (the “Vendor”) for the acquisition by Suntec REIT of a onethird interest in One Raffles Quay through the acquisition of the entire issued share capital of Comina Investment Limited (“Comina”). Comina is a special purpose holding company holding one-third of the issued share capital of One Raffles Quay Pte Ltd (“ORQPL”), the developer and owner of the Property.
The proposed one-third stake in One Raffles Quay is at a purchase value of S$941.5 million. The acquisition is expected to be yield accretive for Unitholders, taking into account the rental top up payments of S$103.48 million (inclusive of GST) over 54 months to be provided by the Vendor. It will also provide further geographical and income diversification for Suntec REIT. The Manager is currently reviewing various financing options for the Acquisition, including without limitation the issuance of units, loans, convertible bonds or other debt securities, or any combination of the aforesaid.
The acquisition is targeted for completion by the first quarter of FY2008. Upon completion, Suntec REIT’s total assets under management would increase to S$4.81 billion.
Mr. Yeo See Kiat, Chief Executive Officer of ARA Suntec, said, “This is a rare opportunity to own a key development such as One Raffles Quay, which offers excellent growth potential. This is in line with our strategy to focus on the exciting Marina Bay growth corridor in acquiring quality assets that would provide stable income streams and significantly enhance the income diversification of the REIT.”
“Given the increased portfolio exposure to the rising office market, we are pleased that this acquisition would allow us to deliver more value to our unitholders.”
Iconic development in the heart of Singapore’s upcoming financial hub
One Raffles Quay is a prime landmark office development situated within the new Business Financial Centre in the Marina Bay precinct with direct accessibility to Raffles Place MRT, a key interchange station in the heart of Singapore’s Central Business District.
Well-positioned to capitalise on the future growth of the area, the property offers a strategic fit in Suntec REIT’s existing portfolio of assets and allows greater exposure to Singapore’s rising office market, underpinned by strong demand for quality office space. Upon completion, the enlarged portfolio of 1.82 million square feet of office space will include reputable tenants such as ABN Amro Asia Pacific Pte Ltd, Barclays PLC, Credit Suisse (Singapore) Limited, Deutsche Bank AG, Ernst & Young Services Pte Ltd and other major financial institutions in addition to Suntec REIT’s existing strong tenant base.
Source : SGX
Suntec – SGX
Suntec REIT Distribution Income For 3QFY07 Up 22.9% To S$30.0 million Year-on-Year
Distribution Per Unit Up 11.9% To 2.100 Cents
Singapore, 30 July 2007 – ARA Trust Management (Suntec) Limited (“ARA Suntec”),
Manager of Suntec Real Estate Investment Trust (“Suntec REIT”), is pleased to announce a distribution income of S$30.0 million for the period 1 April 2007 to 30 June 2007 (3QFY07), 22.9% higher than the S$24.4 million reported for the corresponding period in 2006 (3QFY06). The distribution per unit of 2.100 cents for 3QFY07 was 11.9% higher than in 3QFY06.
Commenting on Suntec REIT’s performance, Mr. Yeo See Kiat, Chief Executive Officer of
ARA Suntec, said, “I’m pleased to report that Suntec REIT has achieved a very good growth for the office portfolio in this quarter. In addition, Suntec City Mall has also reached a new high in its committed average passing rent, to S$10.23 p.s.f. per month as at 30 June 2007.”
Office portfolio continues to enjoy strong rental growth.
Suntec REIT’s office portfolio continued to strengthen significantly. Suntec office leases achieved strong renewal and replacement growth rates for the quarter, with leases secured at rates of between S$9.00 – S$10.50 p.s.f. per month. Park Mall office leases also achieved strong renewal and replacement growth in 3QFY07. The committed office occupancy at Suntec City and Park Mall increased to 99.4% and 98.5% respectively as at 30 June 2007.
Committed average passing rent at Suntec City Mall achieved post-IPO high.
The average retail passing rent at Suntec City Mall achieved a high of S$10.23 p.s.f. per month as at 30 June 2007, underpinned by strong renewals and new leases from the asset enhancement projects, namely MY.PLAYGround and the Fashion zone at Galleria. Average passing rents at Park Mall and Chijmes were S$6.49 p.s.f. per month and S$10.38 p.s.f. per month respectively as at 30 June 2007. Suntec REIT’s other income revenue from A&P, pushcarts and kiosks for the nine months ended FY07 grew 14.8% year-on-year compared to the same period in FY06.
Asset enhancement updates. Suntec City Mall’s new Fashion zone at Galleria achieved an average rent of S$24 p.s.f. per month compared with S$12.27 p.s.f. per month previously, with a committed occupancy of 73% to date. This is expected to strengthen further in the next quarter.
Summary of Suntec REIT Results for 3QFY07
For the period 1 April 2007 to 30 June 2007, Suntec REIT recorded gross revenue of S$46.7 million and distribution income of S$30.0 million, which was 6.3% and 22.9% higher than 3QFY06 respectively. The distribution per unit amounted to 2.100 cents, which was 11.9% higher than 3QFY06.
Source : SGX
CMT – BT
CMT’s Q2 net income up 27.6% to $48.8m
The Reit’s strong Q2 showing is due to good revenue growth
CAPITAMALL Trust (CMT) yesterday said that distributable income for the second quarter ended June 30, 2007, rose 27.6 per cent year-on-year to $48.8 million, boosted by higher rents and earnings from its newly acquired stake in Raffles City.
Distributable income for the same three months in 2006 came to $38.3 million. CMT bought 40 per cent of the Raffles City retail and office complex on Sept 1 last year.
Distribution per unit (DPU) increased by 12.6 per cent to 3.12 cents, from 2.77 cents for 2006.
For the first six months of 2007, CMT recorded a 26.2 per cent jump in distributable income to $95.7 million while DPU rose 11.5 per cent to 6.12 cents.
CMT, which is the largest real estate investment trust (Reit) in Singapore, has an asset size of about $5.7 billion. The trust said that it owns 13 per cent of the private retail stock by net lettable area in Singapore.
The trust’s strong second-quarter showing was underpinned by good revenue growth as most of its malls performed better than expected in the second quarter, it said.
Net property income for the three months rose 36.2 per cent to $67.1 million, mainly due to revenue of some $16.3 million from CMT’s Raffles City stake. Another $6.4 million increase in revenue came from other malls mostly due to new and renewed leases as well as higher revenue from IMM Building which benefited from asset enhancement works.
‘We remain confident of the acquisition opportunities in Singapore and have raised our target asset size to $8 billion by 2010,’ said Hsuan Owyang, chairman of CMT’s manager.
In the second quarter, the trust said it will pay some $290.3 million for three local suburban shopping malls here.
The Reit may also buy 50 per cent of Ion Orchard, a mall its parent company CapitaLand is developing with Hong Kong’s Sun Hung Kai Properties along the Orchard Road shopping belt.
CapitaLand’s stake in the mall, which is expected to be completed by end-2008, is worth more than $1 billion, Pua Seck Guan, chief executive of CapitaLand’s retail arm, told reporters yesterday.
The trust also plans to spend $169 million upgrading its malls this year, and another $127 million in 2008.
Amid a broad market retreat, CMT’s shares fell 12 cents to close at $3.64 yesterday. The stock has climbed 25.1 per cent since the start of the year.
MapleTree – DBS
Acquisitions to drive growth
Comment on Results
MLT reported 2Q07 results in line with our expectations. Gross revenue increased 83% y-o-y to S$34.1m, mainly due to the 30 new properties acquired during the year. Cost efficiencies and economies of scale have also resulted in higher net property income margin. Net distributable income grew 84% y-o-y to S$17.7m.
DPU increased by 33.6% y-o-y to 1.59 cents.
Outlook
To date, MLT has a portfolio of 67 properties with a total value of S$2.2bn(including properties pending completion). Moving forward, MLT is expecting to see more growth coming from outside Singapore. With a ready development pipeline from the sponsor in Vietnam, China and Malaysia, MLT is set to expand its footprint in Asia. In the medium to long term, MLT would also be exploring emerging markets such as South Korea, India, Thailand and Taiwan.
Recommendation
With nine announced acquisitions pending completion (worth around S$166m), there is still an acquisition target balance of around S$200m to S$300m. MLT is on track to achieve its target acquisition pipeline of S$1 bn to reach S$2.4bn by year-end.
Maintain Buy recommendation and target price of S$1.46 (based on DCF Valuation).