Author: tfwee
FSL – BT
FSL Trust plans distribution of US$11m
FIRST Ship Lease Trust (FSL Trust) is making a total distribution of US$11.15 million to unitholders for the third quarter ended September 2007, manager FSL Trust Management (FSLTM) said yesterday.
This represents 100 per cent of the amount available for distribution.
Based on 500 million outstanding units, the distribution per unit (DPU) is 2.23 US cents, 4.7 per cent higher than the DPU of 2.13 US cents projected at the time of the trust’s initial public offering in March 2007.
FSL Trust also reported revenue of US$12.82 million for the quarter, 10.7 per cent higher than projection. The rise in revenue was due primarily to the purchase and concurrent leaseback of three product tankers from James Fisher Everard Limited on June 1, 2007.
Said Philip Clausius, chief executive officer of FSLTM: ‘We are pleased with our third-quarter achievements. Our demonstrated ability to grow FSL Trust through accretive acquisitions has enabled the trust to announce distributions to our unitholders that exceed our projection.
‘This attests to the successful execution of our distribution growth strategy which we intend to continue, in order to enhance value to our unitholders. This will be underpinned by our active participation in the global ship finance market.’
FSL Trust had a portfolio of 16 vessels as at Sept 30, 2007, comprising four container ships, seven product tankers, three chemical tankers and two dry bulk carriers.
The trust’s distribution for the quarter translates into an annualised distribution per unit of 8.92 cents, 4.7 per cent higher than projected.
Based on FSL Trust’s closing unit price of US$0.86 on Oct 17, this translates into a distribution yield of 10.4 per cent.
APL Japan Trust – BT
Another Japan Reit seeks listing on SGX
APL Japan Trust hopes to raise up to $514.9m as it submits prospectus
APL Japan Trust lodged a prospectus with the Monetary Authority of Singapore yesterday, making it the second Japan-based real estate investment trust (Reit) to seek a listing on the Singapore Exchange (SGX) this month.
APL Japan Trust will offer 391.32 million units to institutional and other investors in Singapore and 20.59 million units to the public here at between $1.05 and $1.25 per unit.
Based on the target price, it hopes to raise between $432.5 million and $514.9 million.
JPMorgan is the sole financial adviser for the offering, while JPMorgan and Lehman Brothers International are joint global coordinators and joint bookrunners. UOB Asia is international co-lead manager and coordinator of the public offer.
The Reit sponsor, Asia Pacific Land, is a Japanese real estate company.
It has assets of more than 100 billion yen (S$1.26 billion) under management, as well as development projects totalling 159,000 square metres across Japan.
APL Japan Trust will comprise nine commercial buildings in Tokyo, Yokohama and Nagasaki initially. These buildings have an appraised value of $838.8 million and are primarily for retail use plus 4 per cent for office space.
According to the prospectus, APL Japan Trust forecasts an initial distribution yield of 4.34 to 5.16 per cent per unit and cash distribution growth of about 7 per cent.
The Reit has right of first refusal to five acquisition and development pipeline platforms, including four existing pre-stabilised assets in APL Group totalling about 95,000 sq m and and projects under development of about 61,000 sq m in total.
Earlier this month, Saizen Reit lodged its prospectus. It hopes to raise $244.4 million in an initial public offering at between $1 and $1.08 per unit.
Saizen Reit’s initial portfolio will comprise 146 residential buildings in 12 cities across Japan and is forecast to pay dividend yields of between 6.09 and 6.51 per cent per unit this year and 5.29 to 5.65 per cent next year.
Reference : Prelim Prospectus
AREIT – UOBKH
Secures new development projects
Two new development projects. A-REIT has committed to two development projects worth S$277m:
• two suburban business park facilities, including an amenity centre, at Plot 8 Changi Business Park to be completed in three phases; and
• an industrial facility at Pioneer Walk.
The built-to-suit portion at Changi Business Park of about 42,000sm is already pre-committed to a leading international financial institution.
Occupancy rate edges higher. A-REIT has renewed and signed new leases (including expansions) amounting to total net lettable area of 71,433sm for the September quarter. These leases represent 10.4% of the net lettable area for AREIT’s multi-tenanted buildings and generate annualised rental income of S$16.9m. A-REIT overall occupancy rate has increased to a high of 98.3% at Sep 07 compared to 97.2% last year. Occupancy rate for multi-tenanted buildings has also increased to 96.2% compared to 95.0% last year.
BUY
Current Price: S$2.42
Target Price: S$2.73
CMT – SGX
CMT Achieves Higher Distribution per Unit of Over 19.3%1 for Third Quarter2 2007
Singapore, 19 October 2007 – CapitaMall Trust Management Limited (“CMTML”), the manager of CapitaMall Trust (“CMT”), is pleased to announce a distributable income of S$53.2 million to unitholders of CMT (“Unitholders”) for Third Quarter2 2007. The distributable income for Third Quarter2 2007 is based on 100.0% of CMT’s taxable income available for distribution to Unitholders for the same period. The distribution for Third Quarter2 2007 also includes a capital distribution of S$1.5 million received from CMT’s 20% investment in CapitaRetail China Trust (“CRCT”). CMT received a total capital distribution of S$3.1 million3 from CRCT, of which S$1.6 million has been retained for distribution in Fourth Quarter4 2007.
Distribution Per Unit in CMT (“DPU”) for Third Quarter2 2007 is 3.40 cents, including 0.09 cents capital distribution from its investment in CRCT, (13.49 cents on an annualised basis), which is 17.2% higher than the forecast5 DPU of 2.90 cents for Third Quarter2 2007 (11.51 cents on an annualised basis). When compared against the Third Quarter6 in 2006, the DPU registered an increase of 19.3% from 11.31 cents (on an annualised basis) to 13.49 cents (on an annualised basis). The Books Closure and Distribution Payment Date will be announced shortly.
CMT Group’s7 gross revenue for Third Quarter2 2007 was S$114.5 million. This is an increase of S$19.6 million or 20.7% over the forecast5 gross revenue for Third Quarter2 2007. Of the S$19.6 million increase in gross revenue, approximately 25.5% or S$5.0 million was due to top line revenue growth at malls within the CMT Portfolio8. The remaining S$14.6 million was due to the consolidation of CapitaRetail Singapore Limited9 (“CRS”) results.
CMT Group’s7 Net Property Income (“NPI”) for Third Quarter2 2007 also exceeded the forecast5 NPI for Third Quarter2 2007 by 21.7% or S$13.7 million. On the same store10 basis, CMT Group’s7 NPI for Third Quarter2 2007 outperformed NPI for Third Quarter6 2006 by 11.9% or S$5.9 million, while its NPI for First Three Quarters11 2007 was better than NPI for First Three Quarters12 2006 by 8.5% or S$12.7 million. Rental renewal rates for the First Three Quarters11 2007 saw robust growth, registering 12.1% over preceding rental rates, and 5.5% over forecast rental rates13.
1 Annualised Distribution per Unit for the period from 1 July 2007 to 30 September 2007 versus the annualised Distribution per Unit for the period from 1 July 2006 to 30 September 2006.
2 For the period from 1 July 2007 to 30 September 2007.
3 For the period from 23 October 2006 to 30 June 2007.
4 For the period from 1 October 2007 to 31 December 2007.
5 Based on the forecast and projection, together with the accompanying assumptions, in the CMT Offer Information Statement dated 29 August 2006.
6 For the period from 1 July 2006 to 30 September 2006.
7 Includes proportionate consolidation of the 40.0% interest in Raffles City, 100.0% interest in CRS (with effect from 1 June 2007) and CMT MTN Pte. Ltd. (with effect from 13 April 2007) and equity accounting of its associate.
8 Comprising Tampines Mall, Funan DigitaLife Mall, Junction 8, IMM Building, Plaza Singapura, Bugis Junction, Sembawang Shopping Centre, Hougang Plaza, Jurong Entertainment Centre and 40% stake in Raffles City.
9 Comprising Lot One Shoppers’ Mall, Bukit Panjang Plaza and Rivervale Mall.
10 Excluding 40.0% interest in Raffles City, Bukit Panjang Plaza, Lot One Shoppers’ Mall and Rivervale Mall.
11 For the period from 1 January 2007 to 30 September 2007.
12 For the period from 1 January 2006 to 30 September 2006.
13 Forecast rental rates for the period 1 July 2007
Source : SGX
CRCT – SGX
CRCT to acquire Xizhimen Mall in Beijing
Proposed yield-accretive acquisition enlarges CRCT’s portfolio asset size to more than S$1.1 billion and strengthens CRCT’s retail foothold in Beijing Singapore, 18 October 2007 – CapitaRetail China Trust Management Limited (“CRCTML” or the “Manager”), the manager of CapitaRetail China Trust (“CRCT”), is pleased to announce that HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”), as trustee of CRCT, has today entered into a conditional sale and purchase agreement with CapitaLand Retail Trustee Pte. Ltd., as trustee of CapitaRetail China Incubator Fund (“CRCIF”), for CRCT to acquire Xizhimen Mall, with a Gross Rentable Area (“GRA”) of 73,857 Square Metres (“sq m”), at an agreed property price of S$336.0 million. This transaction would mark CRCT’s first acquisition since its listing on Singapore Exchange Securities Trading Limited on 8 December 2006.
Based on the agreed property price of S$336.0 million and an average occupancy rate of 88.7%, Xizhimen Mall is expected to achieve a net property income yield (“NPI yield”) of 5.7% in Forecast Year 2008, The committed occupancy rate, which registered 87.1% as at 11 October 2007, is expected to reach close to 100% within the next few months.
The mall is expected to attain a NPI yield of 6.4% in 2009, assuming 100% committed occupancy rate. The proposed acquisition is thus yield accretive to CRCT unitholders when compared to CRCT’s implied property yield of approximately 3.3%, based on CRCT’s closing unit price of S$2.78 as at 17 October 20071 .
The proposed acquisition also comprises an agreement to purchase, when completed, the planned extension of the current Basement 1 of the mall (“Phase 2”) with a GRA of approximately 11,539 sq m from the original developer of Xihuan Plaza, Beijing Finance Street Construction Development Co., Ltd., subject to certain conditions being fulfilled. The extension would increase the GRA of Xizhimen Mall by 15.6%.
Phase 2 would provide direct pedestrian connectivity to the underground Mass Rapid Transit (“MRT”) station for Line 2 and the future Line 4, and to the National Railway Beijing North station situated next to the mall. The completion of this extension is expected to increase overall shopper traffic and enhance shopper flow within the mall, hence providing further upside to the mall’s overall rentals. With the strong leasing performance at the existing Basement 12, and the favourable price to be paid for Phase 2, we are confident that the acquisition of Phase 2 would provide growth to CRCT unitholders.
Two independent property valuers, Colliers International (Hong Kong) Limited (“Colliers”) and Knight Frank Petty Limited (“Knight Frank”), were commissioned by the Manager and Trustee respectively to value Xizhimen Mall. Colliers and Knight Frank have valued the property at S$338.4 million3 (RMB1,692.0 million) and S$340.0 million3 (RMB1,700.0 million) respectively, as at 30 September 2007.
Mr Hsuan Owyang, Chairman of CRCTML, said, “The yield-accretive acquisition of the prime Xizhimen Mall will grow CRCT’s portfolio asset size from its current S$763.7 million4 to S$1.16 billion5. With the secured and proprietary pipeline of quality assets from CapitaLand-sponsored private China retail property funds, as well as from potential direct acquisitions from the market, CRCT is on track to achieve its target portfolio size of S$3.0 billion by 2009. On the back of rising consumerism and growing retail sales in the Chinese retail market, we remain committed to deliver stable and growing distributions with sustainable total returns, through leveraging on our multi-pronged strategy, to our unitholders.”
Mr Lim Beng Chee, CEO of CRCTML, said, “Sitting atop one of Beijing’s only two key transportation hubs with an average commuter flow of 300,000 on weekdays and 600,000 on weekends, Xizhimen Mall is well-positioned to capture the tremendous daily pedestrian traffic to the mall. The commuter traffic will be further strengthened with Xizhimen Mall’s Phase 2 extension plan, which would provide direct pedestrian connectivity to the MRT station and the adjacent railway station from the Basement Level. The acquisition of Xizhimen Mall will also extend CRCT’s market presence to the western part of Beijing, allowing it to benefit from the large pool of middle-class shoppers and tenancy demand in areas such as Beijing Finance Street and Zhongguancun District.
Together with Anzhen, Jiulong and Wangjing Malls in other locations in Beijing, Xizhimen Mall will position CRCT favourably to capture the city’s strong retail growth opportunity which has averaged approximately 12% annually in the last decade.”
1 The “implied property yield” is calculated as the net property income of CRCT’s existing portfolio in Forecast Year 2008 over the value imputed to the portfolio by investors in CRCT, as reflected by the price at which CRCT Units are currently trading on Singapore Exchange Securities Trading Limited.
2 Committed occupancy rate for Basement 1 is 84.5% as at 11 October 2007
3 The valuers have assumed the exchange rate of S$1 = RMB5.00
4 Based on CRCT’s existing portfolio of seven properties as at 30 June 2007
5 After taking into account the proposed acquisition
Source : SGX