Rickmers – BT
Rickmers Q1 DPU up 5% at 0.60 US cent
Trust expects to continue generating steady cash flow
ON the back of a stable topline, Rickmers Maritime has declared a first-quarter distribution per unit (DPU) of 0.60 US cent, up 5 per cent from 0.57 US cent a year earlier.
The distribution was also equal to the preceding fourth-quarter’s DPU.
Net profit for the three months ended March 31, 2011, increased 72 per cent from US$5.43 million in Q1 2010 to US$9.33 million, helped by unrealised gains on cash flow hedges from four interest rate swaps and lower vessel operating expenses.
But cash flow available for distribution (before payment to debt capital providers) slipped from US$27.19 million to US$24.94 million due to movement in working capital and dry-dock reserves.
Rickmers Maritime’s charter revenue for the quarter dipped 3 per cent to S$35.86 million from US$37.16 million a year earlier. This was attributed to a smaller contribution from Kaethe C Rickmers, a 5,060 TEU container ship which earned a daily charter rate of US$8,288 up to March 24.
Since March 25, its daily charter rate has been increased to US$23,888, and the business trust expects stronger charter revenues in the upcoming quarters.
Rickmers Maritime has also upped its repayment of bank loans to US$12.66 million this quarter, from US$2.78 million in Q1 2010, and hopes to continue to improve its gearing. With a current debt/equity ratio of 2:1, its target is 1:1.
Rickmers Trust Management chief executive officer Thomas Preben Hansen said Rickmers Maritime has started the financial year positively.
He said: ‘Our financial position has strengthened significantly as we continue with deleveraging efforts.’
With its fleet of 16 vessels fully employed through 2011 and having a remaining committed revenue of about US$725 million in the coming eight years, Mr Hansen is confident about the container shipping market.
He expects better market conditions in the second half of the year and the trust to continue to generate steady cash flows.
PST – BT
PST’s DPU rises 2% to 0.809 US cent in Q1
Annualised yield at 8.7%; distributable income at US$4.8m
PACIFIC Shipping Trust’s (PST) first-quarter distribution per unit (DPU) inched up 2 per cent to 0.809 US cent from 0.793 US cent a year ago.
The DPU for the three months ended March 31, 2011, represents an annualised yield of 8.7 per cent, up from 8.6 per cent the year before.
Distributable income for the shipping trust rose 2 per cent year on year to US$4.8 million from US$4.7 million.
Gross revenue from PST’s fleet of 12 box-ships was flat at US$15.2 million. Net profit for the trust’s first quarter was US$6.9 million, up by 4 per cent from US$6.7 million the previous year.
PST’s trustee-manager, PST Management, said the slightly higher net profit was due to lower interest costs and no off-hire days for vessel repairs over the quarter.
While the numbers look dowdy, PST Management’s newly appointed CEO Lim Sim Keat said that in September 2011, income and profitability will get a fillip when two newbuild 180,000 deadweight ton capesize bulk carriers are delivered.
They will then start a 10-year time charter to Jiangsu Shagang Group, at a rate of US$27,000 per vessel per day.
In the past year, PST has made strides into diversifying its fleet from just purely container ships.
Since June 2010, PST has embarked on a diversification drive and bought two multi-purpose vessels and seven bulk carriers.
Bringing tidings of stronger ship financing, PST also announced it secured two loans – both high in loan-to-value ratios of above 80 per cent – to fund their purchases.
Its most recent was in March, for a US$132 million loan from Standard Chartered, OCBC Bank and ING to pay 86 per cent of the contracted price for five Supramax bulk carriers.
When asked if the company will pursue a debt-financed rather than equity-financed route, PST Management’s CFO Shaldine Wong said: ‘We are currently at a 1:1 debt-equity ratio with the ships currently in the construction phase and are all funded by debt. Moving forward, when the time is right, we will consider an equity raise which will average out this proportion.’
PST’s acquisition streak in the past year has also been entirely newbuilds, due to attractive asset prices relative to charter rates.
However, Mr Lim says that PST will not rule out acquiring second-hand vessels. He said: ‘If second-hand prices drop and if we are able to secure attractive charters, we will consider them. It will depend on the counterparty, and rates.’
PST’s shares closed half a US cent up at 37 US cents yesterday.
CRCT – DBSV
Performance dragged by strong S$
• Improved operating performance and cost management dragged by strong S$
• Asset enhancement works successfully rolled out
• Maintain Hold with TP $1.28
Commendable quarter. CRCT reported a 4.7% yoy (+2.5% qoq) growth in topline to S$30.9m. Operating performance improved but hit by stronger S$ vs RMB. NPI rose 7.1% yoy and 8.8% qoq sequentially to $20.7m on improved cost management. In RMB terms, revenue grew by 11.1% yoy to RMB159m thanks to higher portfolio occupancy of 98.4% and an average 8% higher rental renewals on the back of +33.7% yoy greater tenant sales and 18.4% yoy increase in shoppers’ traffic. Distributable income grew a modest 1.0% yoy to S$13.5m due to under-provision of tax in prior years, translating to DPU of 2.15 Scts.
AEI works bearing fruit. AEI works undertaken in the past year has begun to bear fruits and the remaining 440 leases expiring this year should do well with the management’s proactive leasing strategies. Reconfiguration of shops at Xinwu and conversion of Saihan into a multi-tenanted mall raised renewal rents by 21% and 29% respectively. Occupancy at Qibao Mall improved to 92.1% post tenancy repositioning, including bringing in arcade operator Tom’s World ad children fashion retailer BaoDaXiang, led to a 47% jump in NPI. Meanwhile increased shopper footfalls in Xizhimen and Wangjing malls boosted revenue from tenant sales. Continued AEI and adoption of proactive leasing strategy would deliver future growths. With current gearing of 32.6%, CRCT will explore further acquisitions. Debts profile remains healthy with only $77m of debts due this year, of which $24.8m are onshore loans. Average cost of funds should remain fairly low compared to the present 2.8%.
Maintain Hold. As a pure China retail landlord, CRCT should benefit from the strong retail sales in China as domestic and international retailers expand their presence. Maintain Hold with TP of $1.28. CRCT currently offers FY11 and FY12 DPU yield of 6.6-6.7%.
MCT – BT
Mapletree Commercial Trust to raise S$898m in IPO
Mapletree Commercial Trust is set to raise at least S$898 million in a Singapore initial public offering after its IPO was priced slightly above the midpoint of an indicative price range, two sources said on Friday.
A source indicated earlier this week that the IPO’s orderbook was at least five times covered and it would be priced at between the midpoint to the upper end of the range.
The pricing, which was delayed by the earthquake that struck Japan last month, could be a good omen for other property-related listings in Singapore.
This week Perennial China Trust, a China-focused business trust managed by former CapitaLand shopping mall chief Pua Seck Guan relaunched, its Singapore IPO, looking to raise S$840 million.
Mapletree Commercial Trust, managed by Singapore state investor Temasek’s property arm, priced the IPO at S$0.88 a unit against an earlier indicative price range of S$0.84-S$0.91, two sources with knowledge of the deal told Reuters.
The company plans to sell 1.02 billion units, excluding an over-allotment option, according to its prospectus.
This is the city-state’s second-biggest IPO this year after Hong Kong billionaire Li Ka-shing’s Hutchison Port Holdings Trust’s completed a US$5.5 billion listing last month.
Mapletree Commercial, whose assets include Singapore’s largest shopping mall VivoCity, offers investors a chance to tap into the growth in Singapore’s retail market and to ride on a recovery in the city-state’s office sector.
The offering includes 302.2 million units, which will be sold to cornerstone investors AIA Group, Hillsboro Capital, Itochu Corporation and NTUC FairPrice.
Mapletree Commercial will have an initial portfolio worth about S$2.8 billion, including two office properties in the city-state, it said in a prospectus.
Mapletree Commercial’s sponsor, Mapletree Investments, has also granted the trust a right of first refusal for the acquisition of 10 properties including Mapletree Business City, an office precinct in the south of Singapore.
Citigroup, DBS Bank, Deutsche Bank and Goldman Sachs are the joint global coordinators and, along with CIMB, are also joint bookrunners and issue managers.
Mapletree was not immediately available to comment, while the banks either declined to comment or were not available to comment on the pricing. — REUTERS
CRCT – BT
CRCT does better in Q1, sees rosy outlook in China
CAPITARETAIL China Trust (CRCT) yesterday posted improved results for the first quarter ended March 31.
Gross revenue climbed 11.1 per cent year-on-year to 159.1 million yuan (S$30.4 million) largely from higher occupancy rates and higher tenant sales at some malls.
Net property income increased 13.6 per cent to 106.6 million yuan.
The results were slightly eroded by the Singapore dollar’s appreciation against the yuan. Converted to Sing dollars, gross revenue grew a smaller 4.7 per cent while net property income rose 7.1 per cent.
Income available for distribution was $13.5 million, up one per cent from a year ago. Distribution per unit (DPU) for the period was 2.15 cents, above last year’s 2.14 cents.
On an annualised basis, Q1’s DPU was 8.72 cents. Seen against CRCT’s closing unit price of $1.25 on March 31, the annualised distribution yield is 7 per cent.
The counter lost one cent on the stock market yesterday to end trading at $1.26.
CRCT is confident about the outlook for China’s retail market, pointing out that the Chinese government committed to boosting domestic consumer demand in its 12th Five-Year Plan in March.
‘Retail sales in China grew 15.8 per cent year-on-year in the first two months of 2011. Retail sales, driven by growing urbanisation and rising disposable income, are expected to remain robust,’ said Victor Liew, chairman of CRCT’s manager.
CRCT added that the authorities are also investing more in transport infrastructure and public transport, which is expected to improve accessibility and ‘retail footfall’.
CRCT’s portfolio comprises eight malls across five cities in China.
It said it will explore yield-accretive acquisitions to expand its portfolio, and continue rolling out asset enhancement initiatives. Its gearing in the first quarter was 32.6 per cent, up from 31.1 per cent in the fourth quarter of 2010.