AREIT – SGX
1. Distributable income per unit (“DPU”) of 3.51 cents represents a 11.1% year-onyear (“yoy”) growth over 3.16 cents
2. Gross revenue of S$80.2 million is 15% above 2Q FY2006/07 of S$69.9 million
3. Net property income of S$60.1million is 16% above 2Q FY2006/07 of S$51.9million
19 October 2007, Singapore – The Board of Directors of Ascendas-MGM Funds Management Limited (the “Manager”), the manager of Ascendas Real Estate Investment Trust (“A-REIT”), is pleased to announce a DPU of 3.51 cents per unit for the three months ended 30 September 2007, an increase of 11.1% on the 3.16 cents recorded in the same quarter of the last financial year.
Chief Executive Officer of the Manager, Mr Tan Ser Ping said, “On the back of the positive
economic performance and the increasing demand for quality business space, we are pleased to report a 15.9% year-on-year increase in our net property income to $118.2 million and a 10.1% increase in our distribution income per unit for the first half of FY2007/08.
The occupancy rate for the portfolio reached a high of 98.3%. Rental rates have also increased by 32% and 15% for Business & Science Parks and Hi-Tech Industrial properties respectively over 1Q FY2007/08. This can be attributed to the spillover effect from the tight CBD office market and our active asset management initiatives.
For instance, enquiries for space at our partial build-to-suit business park development project (HansaPoint) at Plot 15 Changi Business Park have been very encouraging. We are pleased to report that 84% of the space has been pre-committed five months prior to completion with some recent commitments transacted at rental rates above $3.50 psf pm.
If the positive economic and market conditions are sustained, A-REIT is poised for another year of stable returns for its Unitholders.”
A-REIT will pay out a DPU of 3.51 cents for the three months ended 30 September 2007 on 29 November 2007. A-REIT recorded a DPU of 6.88 cents for the six months ended 30 September 2007. This represents an annualized yield of 5.0% based on the closing price of $2.73 per unit on 28 September 2007.
Source : SGX
AREIT – BT
A-Reit in development projects totalling $277m
ASCENDAS Real Estate Investment Trust (A-Reit) yesterday announced new investments for development projects at Changi Business Park and in Jurong totalling $277 million, including about 42,000 square metres of built-to-suit (BTS) business park space at Changi Business Park pre-committed to a ‘leading international financial institution’.
The trust did not identify the party but market watchers said that it may be Citibank.
Giving details of A-Reit’s new investments, the trust’s manager Ascendas-MGM Funds Management said that they include the development of Changi Business Park’s Plot 8 into three business park buildings – two BTS buildings and a multi-tenant block with an amenity podium. These buildings are on land of 29,864 sq m with 30 + 30 year tenure and will have a combined gross floor area of 74,660 sq m (803,633 sq ft).
The BTS portion pre-committed to the financial institution will be built in two phases, the first slated for completion in the first quarter of 2009 and the second in Q4 2010.
The multi-tenant building, with a gross floor area of about 33,000 sq m, will have about 6,000 sq m of amenity space to cater to the increasing population at Changi Business Park. The project is expected to be ready in second-half 2009.
The total cost for all phases of the development is $191 million.
Over at Pioneer Walk in Jurong, A-Reit will develop industrial space on a 36,600 sq m plot with a 30-year tenure.
On completion, the project will have 80,609 sq m of lettable floor area in two blocks of six-storey, ramp-up high-specification space.
Costing $86 million, the development will be built in two phases and is scheduled for completion in Q3-Q4 next year.
Eighty per cent or 28,376 sq m of phase 1 space has been pre-committed and 40 per cent or 18,396 sq m of phase 2 is under offer.
A-Reit also said yesterday that it renewed and signed new leases, including expansions, for a total net lettable area of 71,433 sq m in the quarter ended Sept 30. The overall portfolio occupancy rate increased to 98.3 per cent as at that same date, from 97.2 per cent a year earlier.
CRCT – BT
CapitaRetail China Trust in $336m deal
CAPITARETAIL China Trust (CRCT) – the first pure-play China retail real estate investment trust (Reit) in Singapore – has entered into a deal to buy a mall in Beijing for $336 million from CapitaRetail China Incubator Fund (CRCIF).
Located in Xizhimen in Xicheng district, Beijing, Xizhimen Mall is part of Xihuan Plaza, and has a gross rentable area of 73,857 sq metres. This is CRCT’s first acquisition since its listing on the Singapore Exchange in December 2006.
CRCIF is a US$450 million private equity fund sponsored by CapitaLand Limited to buy completed malls in China. CapitaLand holds a 30 per cent stake in the fund, while the remaining equity is held by pension funds, insurance companies and corporations. CRCT enjoys the first right of refusal to purchase malls held by CRCIF.
Commenting on the purchase, Lim Beng Chee, CEO of CapitaRetail China Trust Management (CRCTM), 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.’
He added that Xizhimen Mall along with the trust’s other retail malls will position CRCT favourably to capture the city’s strong retail growth opportunity which has averaged about 12 per cent annually in the last decade. CRCTM is the manager of CRCT.
Post-acquisition, CRCT’s portfolio asset size will grow from its current portfolio of seven properties valued at $763.7 million to $1.16 billion.
The other properties are Wangjing Mall, Jiulong Mall and Anzhen Mall in Beijing, Qibao Mall in Shanghai, Zhengzhou Mall in Zhengzhou, Jinyu Mall in Huhehaote, and Xinwu Mall in Wuhu.
Xizhimen Mall was valued at $338.4 million and $340 million respectively by two independent property valuers, Colliers International (Hong Kong) Limited and Knight Frank Petty Limited.
Hsuan Owyang, chairman of CRCTM, said the trust is on track to achieve its target portfolio size of $3 billion by 2009.
Xizhimen Mall is expected to achieve a net property income yield (NPI yield) of 5.7 per cent next year, based on an average mall occupancy rate of 88.7 per cent, and an NPI yield of 6.4 per cent in 2009, assuming 100 per cent committed occupancy rate.
The proposed acquisition, which is subject to conditions including unitholders’ approval, includes a conditional agreement for CRCT to buy the planned extension of the current Basement 1 of the mall from the original developer of Xihuan Plaza – Beijing Finance Street Construction Development.
The extension would increase the GRA of Xizhimen Mall by 15.6 per cent and would provide direct pedestrian connectivity to the underground Mass Rapid Transit station. The extension is expected to increase overall shopper traffic and enhance shopper flow within the mall.
To help fund the purchase, the trust said it is looking to raise about $280 million from an equity fund raising. It expects to fund the remaining purchase consideration through borrowings.
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