Month: April 2011
CRCT – DBSV
Performance dragged by strong S$
• Improved operating performance and cost management dragged by strong S$
• Asset enhancement works successfully rolled out
• Maintain Hold with TP $1.28
Commendable quarter. CRCT reported a 4.7% yoy (+2.5% qoq) growth in topline to S$30.9m. Operating performance improved but hit by stronger S$ vs RMB. NPI rose 7.1% yoy and 8.8% qoq sequentially to $20.7m on improved cost management. In RMB terms, revenue grew by 11.1% yoy to RMB159m thanks to higher portfolio occupancy of 98.4% and an average 8% higher rental renewals on the back of +33.7% yoy greater tenant sales and 18.4% yoy increase in shoppers’ traffic. Distributable income grew a modest 1.0% yoy to S$13.5m due to under-provision of tax in prior years, translating to DPU of 2.15 Scts.
AEI works bearing fruit. AEI works undertaken in the past year has begun to bear fruits and the remaining 440 leases expiring this year should do well with the management’s proactive leasing strategies. Reconfiguration of shops at Xinwu and conversion of Saihan into a multi-tenanted mall raised renewal rents by 21% and 29% respectively. Occupancy at Qibao Mall improved to 92.1% post tenancy repositioning, including bringing in arcade operator Tom’s World ad children fashion retailer BaoDaXiang, led to a 47% jump in NPI. Meanwhile increased shopper footfalls in Xizhimen and Wangjing malls boosted revenue from tenant sales. Continued AEI and adoption of proactive leasing strategy would deliver future growths. With current gearing of 32.6%, CRCT will explore further acquisitions. Debts profile remains healthy with only $77m of debts due this year, of which $24.8m are onshore loans. Average cost of funds should remain fairly low compared to the present 2.8%.
Maintain Hold. As a pure China retail landlord, CRCT should benefit from the strong retail sales in China as domestic and international retailers expand their presence. Maintain Hold with TP of $1.28. CRCT currently offers FY11 and FY12 DPU yield of 6.6-6.7%.
MCT – BT
Mapletree Commercial Trust to raise S$898m in IPO
Mapletree Commercial Trust is set to raise at least S$898 million in a Singapore initial public offering after its IPO was priced slightly above the midpoint of an indicative price range, two sources said on Friday.
A source indicated earlier this week that the IPO’s orderbook was at least five times covered and it would be priced at between the midpoint to the upper end of the range.
The pricing, which was delayed by the earthquake that struck Japan last month, could be a good omen for other property-related listings in Singapore.
This week Perennial China Trust, a China-focused business trust managed by former CapitaLand shopping mall chief Pua Seck Guan relaunched, its Singapore IPO, looking to raise S$840 million.
Mapletree Commercial Trust, managed by Singapore state investor Temasek’s property arm, priced the IPO at S$0.88 a unit against an earlier indicative price range of S$0.84-S$0.91, two sources with knowledge of the deal told Reuters.
The company plans to sell 1.02 billion units, excluding an over-allotment option, according to its prospectus.
This is the city-state’s second-biggest IPO this year after Hong Kong billionaire Li Ka-shing’s Hutchison Port Holdings Trust’s completed a US$5.5 billion listing last month.
Mapletree Commercial, whose assets include Singapore’s largest shopping mall VivoCity, offers investors a chance to tap into the growth in Singapore’s retail market and to ride on a recovery in the city-state’s office sector.
The offering includes 302.2 million units, which will be sold to cornerstone investors AIA Group, Hillsboro Capital, Itochu Corporation and NTUC FairPrice.
Mapletree Commercial will have an initial portfolio worth about S$2.8 billion, including two office properties in the city-state, it said in a prospectus.
Mapletree Commercial’s sponsor, Mapletree Investments, has also granted the trust a right of first refusal for the acquisition of 10 properties including Mapletree Business City, an office precinct in the south of Singapore.
Citigroup, DBS Bank, Deutsche Bank and Goldman Sachs are the joint global coordinators and, along with CIMB, are also joint bookrunners and issue managers.
Mapletree was not immediately available to comment, while the banks either declined to comment or were not available to comment on the pricing. — REUTERS
CRCT – BT
CRCT does better in Q1, sees rosy outlook in China
CAPITARETAIL China Trust (CRCT) yesterday posted improved results for the first quarter ended March 31.
Gross revenue climbed 11.1 per cent year-on-year to 159.1 million yuan (S$30.4 million) largely from higher occupancy rates and higher tenant sales at some malls.
Net property income increased 13.6 per cent to 106.6 million yuan.
The results were slightly eroded by the Singapore dollar’s appreciation against the yuan. Converted to Sing dollars, gross revenue grew a smaller 4.7 per cent while net property income rose 7.1 per cent.
Income available for distribution was $13.5 million, up one per cent from a year ago. Distribution per unit (DPU) for the period was 2.15 cents, above last year’s 2.14 cents.
On an annualised basis, Q1’s DPU was 8.72 cents. Seen against CRCT’s closing unit price of $1.25 on March 31, the annualised distribution yield is 7 per cent.
The counter lost one cent on the stock market yesterday to end trading at $1.26.
CRCT is confident about the outlook for China’s retail market, pointing out that the Chinese government committed to boosting domestic consumer demand in its 12th Five-Year Plan in March.
‘Retail sales in China grew 15.8 per cent year-on-year in the first two months of 2011. Retail sales, driven by growing urbanisation and rising disposable income, are expected to remain robust,’ said Victor Liew, chairman of CRCT’s manager.
CRCT added that the authorities are also investing more in transport infrastructure and public transport, which is expected to improve accessibility and ‘retail footfall’.
CRCT’s portfolio comprises eight malls across five cities in China.
It said it will explore yield-accretive acquisitions to expand its portfolio, and continue rolling out asset enhancement initiatives. Its gearing in the first quarter was 32.6 per cent, up from 31.1 per cent in the fourth quarter of 2010.
K-Green – CNA
SINGAPORE: K-Green Trust said its profit after tax achieved for the first quarter of 2011 was S$3.5 million – 5.4 per cent higher than its forecast.
No comparative figures were given as the business trust, managed by Keppel Infrastructure Fund Management, was listed on the Singapore Exchange on June 29, 2010.
The trust's earnings per unit for the three months ended March 31 was 0.56 Singapore cents.
The trust said its free cash flow for the quarter was S$9.5 million, while its net asset value per unit as at 31 March was S$1.12.
The trust owns waste treatment and NEWater facilities Senoko Plant, Tuas DBOO Plant and Ulu Pandan Plant.
K-Reit – BT
By ANGELA TAN
K-Reit Asia, a real estate investment trust, reported on Thursday that the distribution per unit for the first quarter ended March 31, 2011 rose 34.6 per cent to 1.79 cents compared to 1.33 cents a year ago.
Distribution to unitholders increased by 36.1 per cent to S$24.3 million during the quarter compared to S$17.8 million a year ago.
Property income for the first quarter was S$18.7 million, a marginal increase of S$0.5 million or 2.5 per cent over a year ago, due mainly to higher property income from the two Australian properties and Bugis Junction Towers.
Net property income increased by 7.6 per cent to S$14.9 million in the first quarter as a result of increase in assets under management and lower property expenses.
Its manager expects to achieve its DPU forecast of 6.68 cents for the financial year ending 31 December 2011.
K-Reit Asia is managed by K-Reit Asia Management Limited, a wholly-owned subsidiary of Keppel Land Limited.