HPH Trust – Lim and Tan

• In US$ terms, HPH Trust is at its lowest in 3 months.

• Clearly, the introduction of the S$ counter (announced on Mar 22nd) has not really “helped”, other than the knee jerk up-tick in unit price, as we had expected, to 79 US cents (on Mar 27th).

• In fact, trading volume, on an aggregate basis, has actually declined:

– In the 7 trading sessions since debut of the S$ counter, total volume came to 106 mln units (87.68 mln in US$, and 19 mln S$, which could also suggest less-than-strong retail interest) or 15 mln units average a day.

– In March, volume totaled 554.42 mln units or 25.2 mln units average a day.

– For the week ended Feb 24th, when 2011 results were released, it was 222.7 mln units or 44.5 mln units daily average.

• For period Mar 16 – Dec 31 ’11, HPHT earned HK$1970.3 mln and paid out 37.7 HK cents / 4.86 US cents a unit (6.09 US cents annualized ) to unit holders. Yield would be 8.5%.

• Profit in H2 was HK$1316.6 mln; distribution 23.4 HK cents / 3.02 US cents or 5.99 cents annualized, a unit, giving a yield of 8.3%.

• We maintain individual investors in Singapore would do better sticking with S-Reits / business trusts. Our picks remain City Spring, Fraser Centrepoint, Mapletree Commercial, Parkway Life.

Notes

* Suggesting exchange rate of US$1=S$1.27. Note the rate has been pretty stable at this level, although most experts expect MAS to allow S$ to strengthen to combat the difficult inflation situation in Singapore.