Month: January 2008
AREIT – DBS
Slowly and steadily
Comment on Results
A-REIT reported 15% higher net income available for distribution yoy at S$47.2, on the back of 13% increase in gross revenues to S$80.2m. This was mainly due to additional rental income from completed acquisitions and positive rental reversions from its high-tech industrials and business as well as science parks.
Average occupancy levels rose to 98.7% as at 31 Dec 07 compared to 96.1% a year ago.
Leverage at 38.6%. As at end Dec 07, AREIT had an aggregate gearing of 38.6%, which was 88% fixed at 3.39% and an average weighted term of 3.92 years. Interest cover ratio was 5.32x.
Recommendation
As at 31 Dec’07, A-REIT’s portfolio consisted of 79 properties with five additional investments worth S$277m and MOUs worth S$200m expected to be included into the portfolio in stages
over the next few years. In the near future, we await HansaPoint @ Changi Business and Plot 7 & 8 Changi LogisPark to be injected into the portfolio (Total value: S$61m).
Moving forward, we expect A-REIT to seek higher yielding development projects and purchase 3rd party acquisitions at the same time.
Maintain BUY at TP S$2.80 based on DCF valuation. We have reduced FY09 DPU contribution by 2% as we are now assuming S$200m worth of acquisitions in FY08 (previous : S$400m). YTD, acquisitions have hit S$98m and we expect part of the MOUs worth S$200m to materialise in FY08. In view of the additional investments secured and possible 3rd party acquisitions coming on stream, we maintain our forward acquisition assumptions of S$400m p.a.
till FY10.
MI-REIT – BT
MI-Reit postpones fund-raising exercise
MACARTHURCOOK Industrial Reit (MI-Reit) is postponing its $200 million equity fund-raising exercise given the poor market conditions, the trust said yesterday.
‘We have taken into consideration the current turmoil in the international capital markets in reaching the decision to postpone the proposed equity fund- raising to preserve the value of unitholders’ equity,’ said Chris Calvert, CEO of MI-Reit’s manager.
The trust announced in December that it intended to raise up to $200 million in gross proceeds. But now, the proposed equity fund-raising will be postponed until ‘markets are more conducive’, the trust said.
MI-Reit had intended to use the proceeds of the exercise to refinance its recent property acquisitions in Singapore and Japan, thereby freeing up capital for further acquisitions.
Following the expected completion of its committed acquisitions in the fourth quarter ending March 31, 2008, the aggregate leverage of MI-Reit and its subsidiary and controlled entity Japan Industrial Property will be about 41 per cent – notwithstanding the equity fund-raising, the Reit said yesterday. ‘This gearing is comfortably within MI-Reit’s long-term target gearing of 40- 50 per cent,’ the trust said in a filing to the Singapore Exchange.
Stock markets across Asia have taken a beating this month on the back of turmoil in the global capital markets, brought on by the sub-prime loans crisis and fears of a recession in the United States.
In Singapore, the benchmark Straits Times Index has slipped 10.4 per cent since the start of the year. In contrast, MI-Reit’s stock has fallen 18.2 per cent, losing three cents to close at a one-year low of 90 cents yesterday.
AREIT – BT
A-Reit distributable income up 15% in Q3
ASCENDAS Real Estate Investment Trust (A-Reit) yesterday reported distributable income of $47.2 million for the three months to end-December, up 15 per cent from a year earlier.
Gross revenue for the third quarter of its financial year, which ends on March 31, rose 13 per cent to $80.2 million, due mainly to additional rental income from a string of completed acquisitions, including the Courts and Giant warehouse retail facilities in Tampines and the completed asset enhancement at The Alpha building in Science Park II.
A-Reit’s distribution per unit for the three-month period was 3.56 cents, 11 per cent higher than a year ago.
For the nine months ended Dec 31, A-Reit’s distributable income came to $138.3 million, up 14 per cent from the same period a year ago. Gross revenue rose 14 per cent to $237.8 million.
The trust’s annualised distribution per unit of 13.92 cents – based on the 10.44 cents for the nine months ended December – translates into a distribution yield of 6.4 per cent, based on A-Reit’s closing price of $2.19 yesterday. The counter ended nine cents higher in yesterday’s trading.
A-Reit’s spokeswoman declined to comment on market speculation that Australia’s Goodman Group is poised to exit Ascendas-MGM Funds Management, a 60-40 joint venture between Ascendas Pte Ltd and Goodman International that manages A-Reit.
A-Reit’s portfolio comprised 79 properties at the end of 2007, compared with 68 properties a year earlier. The trust’s portfolio includes logistics and distribution centres, business and science park buildings, and light industrial and high-tech industrial properties.
In Q3, A-Reit’s portfolio occupancy rate rose to a high of 98.7 per cent, from 96.1 per cent a year ago. The trust’s properties in the business and science park sector achieved a 46.1 per cent increase in renewal rental rates versus existing rental rates while lease renewals for its high-tech industrial properties were at rental rates 71.5 per cent above existing rents, said A-Reit in a statement.
Cambridge – SGX
ANNOUNCEMENT
COMPLETION OF THE ACQUISITION OF 6 TUAS BAY WALK FOR S$7 MILLION
1. Cambridge Industrial Trust Management Limited (the “Manager”), the Manager of Cambridge Industrial Trust (“CIT”), is pleased to announce the completion of the acquisition of 6 Tuas Bay Walk (the “Property”) today for a purchase price of S$7 million.
For More Detail report, Click Here
MI-REIT – SGX
SGX-ST ANNOUNCEMENT
MI-REIT TO POSTPONE PROPOSED EQUITY FUND RAISING
We refer to the announcements by MacarthurCook Investment Managers (Asia) Limited, as manager of MacarthurCook Industrial REIT ( “MI-REIT”, and manager of MI-REIT, the “Manager” ), on 21 December and 27 December 2007 in relation to the proposed equity fund raising to raise gross proceeds of up to S$200 million.
Given current market conditions, the Manager has decided to postpone the proposed equity fund raising until markets are more conducive.
Mr Chris Calvert, Chief Executive Officer of the Manager noted, “We have taken into consideration the current turmoil in the international capital markets in reaching the decision to postpone the proposed equity fund raising to preserve the value of unitholders’ equity.”
The Manager had intended to use the proceeds of the proposed equity fund raising to refinance MIREIT’s recent property acquisitions in Singapore and Japan, thereby freeing up capital for future acquisitions.
Following the expected completion of its committed acquisitions in the fourth quarter of MI-REIT’s financial year ending 31 March 2008 ( “4QFY2008” ), the aggregate leverage of MI-REIT and its subsidiary and controlled entity, Japan Industrial Property Pte Ltd, will be approximately 41%, notwithstanding the equity fund raising. This gearing is comfortably within MI-REIT’s long term target gearing of 40% to 50%. MI-REIT has an investment grade credit rating which permits a gearing of up to 60%, under the Property Funds Guidelines.