Author: tfwee
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.
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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.