Author: tfwee
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.
HPH Trust – DJ
Newly-listed port operator Hutchison Port Holdings Trust (NS8U.SG) said Friday that it expects "minimal" impact from Japan''s destructive earthquake and tsunami.
"It''s minimal," Chairman Canning Fok said when how Hutchison Port''s operations might be affected by last week''s magnitude-9 earthquake and ensuing tsunami, which has forced the closure of many production lines and ports in Japan.
"Our trade is more intercontinental, 70% of our trade is intercontinental. I think we are well protected by the nature of our business," he added.
The unit of Hong Kong conglomerate Hutchison Whampoa Ltd. (0013.HK) made its debut on the Singapore Exchange Friday at US$0.975 a unit, 3.5% below its initial public offer price of US$1.01, in the largest ever listing on the Singapore bourse.
Fok said he was happy with the opening price given the current market conditions.
The debut comes at a difficult time for new listings in Asia, with equity markets being sold off heavily after the destructive earthquake and tsunami in Japan and worsening geopolitical tensions in the Middle East.
Mapletree Commercial Trust – BT
Mapletree Commercial Trust IPO indicative yield 5.2-5.8%
SINGAPORE – MAPLETREE Commercial Trust, a real estate industrial trust managed by Singapore state investor Temasek's property arm, has set an indicative yield of 5.2 to 5.8 per cent for its upcoming initial public offering, IFR reported on Thursday.
The REIT, whose assets include Singapore's largest shopping mall Vivocity and two office blocks, is seeking to raise about $1 billion and is currently going through a pre-marketing exercise ahead of an April listing.
Citigroup, DBS and Goldman Sachs are the global co-ordinators and joint bookrunners with CIMB and Deutsche Bank.
Healthcare REITs – OCBC
Robust outlook underpinned by strong growth drivers
Positive 4QFY10 results. Currently, there are only two healthcare REITs listed on SGX. They are First REIT (FREIT) [BUY, FV: S$0.80] and Parkway Life REIT (PLREIT) [NOT RATED]. FREIT and PLREIT both reported a respectable set of 4QFY10 results recently. FREIT’s growth was largely driven by higher rental income from its Indonesian properties; while PLREIT registered a 16.1% YoY increase in DPU to 2.38 Scents as a result of higher rent from its Singapore hospitals and contribution from the 11 Japan nursing homes acquired in 2010.
Favourable stable and long master leases. Both healthcare REITs function on long-term master leases that offer downside revenue protection, hence providing investors with stability. Moreover, there is also potential upside rental reversion that can be reaped. These master leases are important because the operations for healthcare REITs are specialised. Hence having the right operator/master lessee is critical as frequent turnover of operators would be very disruptive to operations.
Healthcare services as growth driver. Growth for Singapore’s healthcare REITs is driven by demand for healthcare and nursing home services. According to the Department of Statistics, Singapore’s private consumption expenditure on healthcare has increased at a CAGR of 8.8% to S$8.29b from 2006 to 2010. On the other hand, statistics from WHO revealed that Indonesia’s private expenditure on health grew at a CAGR of 12.7% to Rp45.3t from 2000 to 2008. We believe that such healthy growth trends are likely to continue, underpinned by strong fundamentals. These include Singapore’s aging population and influx of medical tourists; and Indonesia’s rising affluence which has increased demand for higher quality healthcare services. This would lend support to the rental income growth of PLREIT and FREIT.
OVERWEIGHT on healthcare REITs. We are OVERWEIGHT on healthcare REITs given their favourable master lease structure, strong sponsor support and optimistic outlook on the healthcare sector in Singapore and Indonesia. As seen from Exhibit 5, healthcare REITs on average command a higher yield and have a lower leverage ratio than their S-REIT peers, although their price-to-book ratio is higher. We believe this premium is justified due to the quality of assets owned and defensive nature of earnings which result in increased stability.
In terms of recent share price performance, PLREIT has increased 5.5% YTD while FREIT has risen 5.0% YTD, ranking them first and second respectively in the entire S-REIT universe (FSTREI Index has declined 2.1% YTD and STI Index has dropped 3.0% YTD). This corroborates the defensiveness of healthcare REITs in times of current market uncertainty.