a-iTrust – SGX
a-iTrust achieves strong half-year DPU of 2.95 Singapore cents, 17% above half-year forecast
a-iTrust delivered a strong set of results for the first half of the year ended 30 September 2007. Net property income was S$28.7 million or 66% higher than the same period last year, and 18% higher than its forecast for the period.
Distributable income for the half year was S$22.2 million or 17% above forecast(1). DPU was 2.95 Singapore cents, which represented an annualized yield of 5.0% over the Initial Public Offer price of S$ 1.18 per unit.
(1) A full-year distributable income of S$ 42.3 million was disclosed in the prospectus; if segregated into half years, the distributable income forecast for 1H is S$ 19.0 million and for 2H, S$ 23.3 million. Details of the full results announcement can be found at www.sgx.com and www.a-itrust.com.
The Trustee-Manager expects the trust to deliver the forecast performance for the second half of the year, and hence, given the first half’s results, is confident of at least meeting its DPU forecast of 5.6 Singapore cents for the full year, barring any unforeseen circumstances.
Net asset value (“NAV”) as at 30 September 2007 was S$ 869.6 million or S$ 1.16 per unit, which was higher than the pro forma NAV of S$ 1.05 per unit disclosed in the Capitalization and Indebtedness section of the prospectus dated 24 July 2007.
A key contributor to the sound results was the strong operational performance of aiTrust’s assets, underpinned by the quality of the assets and the booming Indian economy. Higher revenue and cost control had boosted operational performance and cash flows.
Chief Executive Officer of the Trustee-Manager, Mr. Jonathan Yap said, “We are pleased to report a strong set of results which has benefited from the vibrant Indian ITITES sector, resounding support from the user-clients and Trustee-Manager’s proactive asset and portfolio management. We remain focused to build on the momentum and deliver returns to unitholders.”
A Well Diversified Portfolio with High Occupancy
India is the world leader and centre for IT and ITES outsourcing with about 60% global market share and the cities a-iTrust invest in, namely Bangalore, Chennai and Hyderabad have a combined 64% of India’s IT and ITES revenue. a-iTrust has a diversified portfolio of four IT Parks in those cities.
Over the first half year, 700,000 sq. ft. of space within the portfolio of operating buildings was renewed or leased, at higher average rental rates than before. The overall occupancy rate of a-iTrust’s portfolio was 99% as at 30 September 2007.
a-iTrust’s portfolio spreads across a number of sub-sectors such as software development, business process off-shoring, research and development, and data centres. Presently, no single tenant accounts for more than 6% of the total monthly base rental.
Portfolio to Grow through Organic Growth and Three-Pronged Acquisition Strategy
The two completing buildings in the a-iTrust’s portfolio, namely Crest, the 2nd building at International Tech Park Chennai (“ITPC”) and Vega, the 5th building at The V had enjoyed strong pre-commitment of 73% and 72% of space respectively, and marketing of the balance space is in progress. The leased space is being progressively handed over to tenants for fitting-out, and income contribution is expected to commence in 2H FY2007/2008. These 2 buildings will add another 1.1 million sq. ft. of space to aiTrust’s current portfolio of 3.6 million sq. ft. of completed space, increasing a-iTrust’s total lettable space by more than 30% to 4.7 million sq. ft. of space.
There is additional 1.5 million sq. ft. of new space being planned for construction commencement in this financial year. Thereafter, there is still a development potential of 2.7 million sq. ft. within a-iTrust portfolio.
a-iTrust enjoys a right of first refusal from Ascendas Land International Pte Ltd. (“ALI”) to acquire substantially income producing business space. ALI owns Cybervale, (comprising of 4 completed/ potential buildings with a total built up of 1.1 million sq. ft.), an IT Park spreading over 18.5 acres of land within Mahindra World City, an IT Special Economic Zone (“SEZ”) in Chennai.
The first building (250,000 sq ft) of Cybervale, named “Lakeside” has recently been completed and is fully leased out. The development of 2 of the 3 remaining potential buildings are in different stages of implementation. The Trustee-Manager intends to explore with ALI on the acquisition of Cybervale upon its stabilisation.
a-iTrust also has a similar right of first refusal from Ascendas India Development Trust (“AIDT”). AIDT has committed equity of S$ 500 million and target investment size of S$ 1 billion. AIDT has already identified investments with about 7 million sq. ft. of development potential and is currently pursuing more opportunities. AIDT will make such announcements at the appropriate stage.
The Trustee-Manager is also concurrently pursuing acquisition opportunities from themarket.
Looking Forward
The Trustee-Manager will continue to focus on growing the operating earnings of its assets, optimizing its capital structure, and growing the portfolio through acquisition and developing its in-built development pipeline.
Source : SGX
FirstREIT – BT
First Reit posts distributable income of $4.61m for Q3
Trust confident of boosting value of assets to $500m before end-2009
SINGAPORE’S first healthcare real estate investment trust (Reit) said yesterday that its third-quarter distributable income came to $4.61 million – 5.4 per cent higher than forecast – due to rental contributions from newly acquired properties.
First Real Estate Investment Trust (First Reit) bought Pacific Healthcare Nursing Homes at Bukit Merah and Senja in April, The Lentor Residence in June and Adam Road Hospital in July.
Distribution per unit (DPU) came to 1.72 cents for Q3 ended Sept 30, ahead of a 1.6 cents forecast. Net property income totalled $7 million, or 15.6 per cent higher than forecast.
Ronnie Tan, chief executive of Bowsprit Capital Corporation, which manages the Reit, said: ‘The regional macro-economic environment, including Indonesia and Singapore, where we have the bulk of our properties, remains positive for 2007.
‘As such, we are confident of exceeding our forecast DPU of 6.51 Singapore cents for the full year.’
The trust is confident of boosting the value of its assets to $500 million before end-2009, Dr Tan said.
First Reit now has eight properties worth $328 million. Its net asset value per unit came to 0.88 of a cent as at Sept 30.
The Reit recently ventured into China, where it agreed with hospitals in Wuxi, Shanghai and Jiangsu province to ‘explore potential acquisitions’.
Earlier this month, First Reit signed a memorandum of understanding to acquire the 90-bed Wuxi New District Phoenix Hospital. In August, it said that it was investing in a 500-bed hospital property in Jiangsu province.
Then, the following month, it agreed to invest in the property assets of the 200-bed Shanghai Woman and Child Healthcare Hospital and the proposed Hengshan Urology Hospital, both in Shanghai.
First Reit said that it is continuing to explore potential acquisitions with its sponsor Lippo Karawaci in Indonesia.
First Reit’s shares closed half a cent down at 77 cents yesterday, with 112,000 shares changing hands.
FrasersCT – BT
FCT to pay up to $170.5m for Northpoint 2
It will acquire the upcoming shopping mall from its parent firm in Q4 2008
FRASERS Centrepoint Trust (FCT) has entered into a put and call option agreement to acquire the upcoming shopping mall Northpoint 2 for between $139.5 million and $170.5 million, it said yesterday.
The mall, which is being developed by Frasers Centrepoint, will be completed by August 2008. FCT will then acquire it from its parent company in the fourth quarter of 2008.
‘We are doing this (entering the put and call option agreement) now so that we can get a certainty of ownership,’ said Christopher Tang, chief executive of FCT’s manager.
FCT has plans to integrate the upcoming mall with Northpoint, which is already part of its portfolio.
The $30 million asset enhancement programme is expected to be completed by end-June 2009. Together, the two malls will have a combined net lettable area (NLA) of some 232,000 sq ft, an increase of some 56 per cent over Northpoint’s current NLA.
FCT said that the mid-point of the agreed price range for Northpoint 2 – $155 million – is based on an open market valuation. The actual purchase price will be determined by taking the average of two valuations – one each by FCT and Frasers Centrepoint – nearer to the time of the transaction.
FCT also reported its financial results for the fourth quarter ended September 30, 2007 yesterday.
The trust said that distributable income for the three months came to $10.3 million, 13.5 per cent higher than the forecast of $9.1 million as new and renewed leases as well as higher occupancy rates in its malls contributed to increased revenues.
Distribution per unit (DPU) for the quarter came to 1.67 cents, up 13.6 per cent from forecast of 1.47 cents.
Net property income came to $12.8 million, some 2.6 per cent higher than the forecast of $12.5 million.
For its full financial year, FCT reported distributable income of $40.4 million, 11.1 per cent higher than its forecast. DPU came to 6.55 cents, 12.0 per cent higher than forecast. And full-year net property income came to $51.7 million, 3.2 per cent higher than its forecast.
There are no comparable figures for the previous corresponding periods as FCT was only listed on July 5 last year.
FCT has three more Singapore malls awaiting injection into the Reit – Yew Tee Point, Bedok Mall and The Centrepoint. Yew Tee Point will be injected in early 2009 and Bedok Mall in 2010, Mr Tang said. He added that there is no timeline at present for Centrepoint’s injection. The four malls together will double the trust’s current portfolio.
The trust will also look at China and Australia for growth together with Malaysia, where it already has a presence through its stake in Hektar Reit, Mr Tang said.
FCT’s shares closed unchanged at $1.50 yesterday.