Author: tfwee
Saizen – UOB
Issue statistics
Offer size: 196.7m new shares(subject to the Over-allotment Option)
Public Tranche – 18.5m shares
Placement Tranche – 178.2m shares
Price: S$1.00
NAV per share (post-IPO): ￥79.78 (S$1.05)
Market Cap (post-IPO): S$472m
Open: 30 October 2007, 12.00 noon
Close: 5 November 2007, 8.00 a.m
Trading: 9 November 2007, 2.00 p.m
Lead Manager: Morgan Stanley, Credit Suisse
Background
Saizen REIT’s portfolio comprises 148 Initial Properties located in 12 regional cities throughout Japan with a total appraised value of ￥47.7 billion (approximately S$626.8 million). As at 31 August 2007, the Initial Properties have a total Gross Floor Area of 226,250 sq m, a total Net Lettable Area of 197,743 sq m and an occupancy rate of approximately 91.2%. Occupancy rates shown below are as at 31 August 2007.
Potential acquisition of 15 Additional Properties with a total indicative purchase consideration (excluding transaction costs) of approximately ￥5.4 billion (approximately S$71.4 million). Also considering the acquisition of over 40 properties worth approximately ￥20 billion (approximately S$263.0 million).
Saizen REIT’s distribution policy is to distribute at least 90.0% of Saizen REIT’s Distributable Income in each financial year. For Forecast Period 2008 and Projection Year 2009, Saizen REIT, to the extent possible, will distribute Distributable Income in excess of 90.0% in order to meet the Manager’s forecast and projection set out.
Forecast Yield
Forecast Period 2008 – DPU 4.67ct ; Annualised Yield 6.51%
Projection Year 2009 – DPU 5.65ct ; Yield 5.65%
Reference : IPO Prospectus
CDLHTrust – BT
CDL HT distributable income jumps 138.5%
Hotels put up strong showing with total revenue at $65m and gross operating profit at $32.4m
CDL Hospitality Trusts (CDL HT) has reported distributable income of $18.8 million for Q3 2007, up 138.5 per cent from $7.9 million a year earlier and 90.8 per cent higher than its projection.
Revenue was $23.97 million, up 112.9 per cent from $11.3 million previously. And distribution per unit was 2.36 cents, up 108.8 per cent from 1.13 cents.
CDL HT said its hotels put up a strong showing.
Average occupancy rates at the Orchard Hotel Singapore, Grand Copthorne Waterfront Hotel Singapore, M Hotel Singapore and Copthorne King’s Hotel Singapore increased 3.9 percentage points from a year earlier to 89.4 per cent, while the average daily rates increased 21.8 per cent to $201. Revenue per available room (RevPAR) rose 27.4 per cent to $179.
The four hotels achieved combined hotel revenue of $56.4 million and a combined gross operating profit of $28.2 million.
Including Novotel Clarke Quay Hotel, which was acquired on June 7 this year, total hotel revenue for Q3 was $65.1 million and gross operating profit $32.4 million.
Combined weighted average RevPAR for the five hotels – including Novotel Clarke Quay Hotel – was $176. The average occupancy rate was 90 per cent.
Vincent Yeo, CEO of M&C REIT Management, manager of CDL HT, said: ‘Even though September’s growth against the previous year was diluted because of the extremely high rates achieved last year due to the one-off International Monetary Fund/World Bank meeting held in Singapore, the third quarter still showed very strong growth rates overall.’
CDL HT said that of the $18.8 million of distributable income, $3.6 million – representing income available for distribution for the period from July 1 to July 18 – has already been distributed. The remaining $15.2 million of income available for distribution will be included in the computation of the next distributable income for the period July 19 to Dec 31.
CDL HT units closed eight cents higher at $2.47 yesterday.
CDLHTrust – UOBKH
3Q07: DPU up 69% than IPO forecast
3Q revenue higher than IPO forecast by 69% to S$24.0m. The initial portfolio of four Singapore hotels registered strong revenue growth ranging from 25% to 41% yoy. Novotel Clarke Quay, acquired in June 07, made its maiden contribution of $3.8m or 16% of total revenue. In tandem with revenue growth, DPU increased 69% to 2.36 cents than IPO forecast, suggesting annualized yield of 3.92%.
RevPAR grew 27.4% to $179 on same-store basis, driven by increase in both occupancy rate and Average Daily Rate (ADR). Singapore welcomed visitor arrival of 7.6m in the first three quarters, 5.3% growth yoy. Due to tight supply of hotel rooms, the Trusts’ Singapore hotel portfolio enjoyed ADR increment of 20%, in line with industry level. Its occupancy rate was also up 7.1 ppt to 89.9%
The largest hotel owner in Singapore, still with room to grow. All CDL REIT’s assets are close to CBD or Orchard Road, which allows it to cater for both leisure and business travelers. High margin corporate business accounted for 77% of total revenue in ytd 07, up from 71% in 06. Boasting 2324 hotel rooms in Singapore, CDL is set to benefit from booming tourism sector in the Lion City. Its gearing remains low at 23%, with $550m debt capacity for asset acquisition given 45% optimal gearing ratio.
Maintain BUY with earning forecast under review.
Cambridge – DMG
– Results in line with projections. Cambridge posted Q3 distributable income of $8.8m (DPU 1.7cts), +10% qoq and 29% ahead of its IPO forecast, on a 25% yoy and 8% qoq rise in revenue to $13.5m. The improved results were due to additional contributions from new acquisitions. For the 9M, distributable bottomline came in at $24.2m or 72% of our full year forecast. – Added 6 properties to portfolio since beginning 07. For the 9M07, the group had acquired 6 buildings valued at $137m, bringing its portfolio to 33 properties. New contributions from these properties had boosted bottomline. It has another $190.5m of new purchases which are expected to be completed over the next 1 month. In all, these assets are expected to add about $25m rental revenue annually to topline. – A further $94m of MOUs. The key driver to DPU growth is new acquisitions. In this respect, the group has expanded its portfolio by $328m with another $94m of MOUs. Given the increasingly competitive domestic acquisition environment, CIT also plans to venture into Malaysia and China and could look to possibly invest offshore over the next 12 months. Recent $193.9m cash raising exercise via an issue of 276.9m new units has lowered gearing to 38% and has freed up $480m of debt headroom for the group to seek new buys. – Maintain Buy. Share price has retraced 26% from the recent high and at present, offers significant value in view of its stable and secure income profile and long lease life. FY08 yield of 8.6% is amongst the highest with the S-reit sector. Our price target of $0.94 is conservative and is based on discounting cashflow from existing portfolio and has not imputed earnings accretion from potential new purchases. Reiterate buy with potential upside of 33%.