FSL – OCBC
– First Ship Lease Trust (FSLT) staged a breakout above the downtrend line 2 weeks ago.
– And this breakout was confirmed shortly when FSLT pulled back to test the resistance-turned-support before heading higher. At this juncture, the rally has broken past the 50-day moving average.
– We expect FSLT to rise towards the 1st resistance at S$0.925 before the rally weakens for a temporary consolidation.
– Our confidence in its underlying strength is derived from both the RSI and stochastic indicators which are on the uptrend, as well as the bullish candlestick formation on 27 Sept and 10 Oct.
– 1st resistance at S$0.925, 2nd resistance at S$0.98, and support is set at S$0.83.
Rickmers – OCBC
– Rickmers has fallen below its IPO price (??) after closing at S$1.51 yesterday.
– Yesterday’s sell off was on the back of high volume, which indicates a little more downside is expected, but the reversal candlestick formation also suggests the sell off is close to bottoming.
– Hence, we do not expect the Rickmers to slip very much further as it is trading close to the lower band of the descending trend channel, which is also close to our support at S$1.49.
– We also observed that the short-term stochastic indicator has just cut up inside the oversold territory, hence we anticipate a rebound ahead.
– 1st resistance level set at S$1.58 and 2nd resistance level set at S$1.66.
K-REIT – BT
K-Reit’s Q3 distributable income up 31%
Better occupancies and higher rentals lead to improved performance
K-REIT Asia yesterday said that its third-quarter income distributable to its unitholders rose 31.3 per cent to $5.4 million – from $4.1 million a year ago – as the trust benefited from higher rents in its properties.
The better performance pushed the real estate investment trust’s distribution per unit to 2.23 cents, up 30.4 per cent from the 1.71 cents paid out for the same three months last year.
Net property income increased 19.7 per cent to $7.5 million, from $6.3 million a year ago.
K-Reit attributed the improved performance to higher revenues as a result of better occupancies and higher rentals achieved for new and renewed leases.
‘The portfolio attained 99.6 per cent committed occupancy as at end-September 2007 on the back of continued strong underlying demand for office space,’ K-Reit said. ‘Average gross rental rates reached $4.43 per square foot per month (psf pm) in September 2007, from $3.71 psf pm for the same period in 2006.’
Also in the third quarter, the trust announced its maiden acquisition since its listing in April 2006.
It said it will buy parent company Keppel Land’s one-third stake in One Raffles Quay for $941.5 million. The acquisition will more than double K-Reit’s portfolio to $1.8 billion.
The acquisition is subject to the approval of shareholders of both Keppel Land and K-Reit at their respective extraordinary general meetings, which will be held today. Keppel Land owns about 40 per cent of K-Reit.
Going forward, K-Reit will actively seek acquisitions of prime commercial properties in Singapore and other Asian growth cities to grow its portfolio size to a targeted $2 billion, it said.
The trust said that about 70 per cent of its portfolio’s net lettable area is due for renewal between 2008 and 2010, which puts it in a good position to ride on the rising rental market, which is underpinned by strong demand and tight supply.
K-Reit’s shares closed one cent down at $2.95 yesterday. The stock has climbed 18 per cent since the start of the year.
Hyflux Water Trust – BT
Hyflux to list trust based on China water plants
SINGAPORE – Water treatment firm Hyflux said on Thursday it will set up a business trust that includes 13 China water treatment plants to be floated on the stock market in a deal that a source said would be worth more than US$100 million.
Hyflux plans to list the trust on the Singapore stock market by the end of this year. Called Hyflux Water Trust (HWT), the entity will own 13 plants with a total daily capacity of 445,000 cubic metres. The trust will also have right of first refusal on all other water assets owned by Hyflux, the Singapore company said in a statement.
Hyflux will retain between one-quarter and one-third of the trust after the IPO, it added.
The spinoff of the plants into a business trust will enable Hyflux to achieve its asset-light strategy and allow it to use its capital for expansion elsewhere, Hyflux Chief Executive Olivia Lum said.
Hyflux had previously assigned first right of refusal to CitySpring Infrastructure Trust, which earlier on Thursday said the agreement had been called off by mutual consent.
HWT will be headed by Saud Ibne Siddique, while Hyflux Chief Financial Officer Grace Goh Bee Kheng will take care of the trust’s finances after resigning from Hyflux.
Shares of Hyflux rose as much as 4.12 per cent to a two-year high of $3.56 with 2.3 million shares traded when they resumed trading at 2pm. — REUTERS
Rickmers – SGX
RICKMERS MARITIME SECURES GROWTH FOR 2008 WITH ACQUISITION OF FIVE 4,250 TEU CONTAINER VESSELS
Ten-year time charters to major Japanese shipping company
Acquisitions expected to be yield-accretive
Provides near term expansion of fleet capacity
Singapore, 11th October 2007 – Rickmers Trust Management Pte. Ltd. (“RTM”), the trusteemanager of Rickmers Maritime, is pleased to announce that it has entered into a memorandum of understanding (“MOU”) to acquire five 4,250 TEU container vessels (the “Vessels”) from Polaris Shipmanagement Company Limited pursuant to the right of first offer granted to RTM under the Omnibus Agreement dated 24 April 2007 entered into by (1) RTM (acting on behalf of Rickmers Maritime), (2) Rickmers Holding GmbH Cie. KG, (3) Pacific Holdings International GmbH & Cie. KG and (4) Mr. Bertram R. C. Rickmers. The new acquisitions are in addition to the recently announced acquisitions of four 13,100 TEU and four 4,250 TEU container vessels, which together will increase Rickmers Maritime’s current total contracted fleet capacity by 220% from 40,910 TEU to 131,560 TEU.
The five new Vessels are scheduled to be delivered between June 2008 and February 2009 from Dalian Shipbuilding Industry Co., Ltd. (“DSIC”) shipbuilding facilities in Dalian, the People’s Republic of China (“PRC”). DSIC is one of the leading state owned shipbuilders in the PRC with whom the Rickmers Group have concluded a number of newbuilding contracts in the past. The purchase price of each vessel is US$72.0 million, to be paid upon delivery of the respective Vessels to Rickmers Maritime.
Each vessel will commence service upon delivery with ten-year, fixed-rate time charters to MOL, Tokyo (the “Charterer”). MOL is one of the largest vessel operators in the world, operating in excess of 800 vessels, including about 120 containerships. The Vessels have been chartered out at accretive hire rates, which for competitive reasons cannot be disclosed at this time.
The Vessels will be of identical design to Rickmers Maritime’s current fleet of 4,250 TEU vessels, and this is expected to result in economies of scale and operating efficiencies. Rickmers Maritime expects to have 15 of these sister vessels in operations at the end of 2009.
Each of the Vessels will be 260 metres in length, 32.25 metres in breadth and will have a cargo carrying capacity of 50,000 metric tonnes. The MAN B&W 49,720 horsepower fuel-efficient engines will allow each vessel to sail at a service speed of 24.5 knots.
The Vessels are among the nine 4,250 TEU vessels that were disclosed in Rickmers Maritime’s Initial Public Offering Prospectus1 as falling under the right of first offer granted to RTM through Rickmers Group. These Vessels will provide a boost to Rickmers Maritime’s already fastgrowing fleet capacity.
Mr. Thomas Preben Hansen, Chief Executive Officer of RTM said: “With the acquisition of the five vessels we can present our investors with a pearl string of accretive deliveries throughout the next three years while bringing further Asian flavour to our valuable portfolio of highly reputable container liner shipping companies. MOL ranks among the world’s top carriers and we are privileged to have entered into this long-term contract with them.”
Mr. Quah Ban Huat, Chief Financial Officer of RTM, added, “Although it has been less than 6 months since our listing, we have delivered and will continue to deliver on our promise of growth through accretive acquisitions. With the vessel acquisition announcements made so far, we will have visible earnings for years to come. Once delivered, the five new vessels will contribute approximately US$49m per annum of charter hire revenue to the trust.”
The purchase of the Vessels is subject to the entry into of Memorandum of Agreements. The transaction will be classified as an interested person transaction under the Listing Manual of the SGX-ST and is subject to the approval of Unitholders at an extraordinary general meeting (“EGM”) to be convened. A circular in relation to the acquisition containing more detailed financial information, a notice of the EGM and the recommendation of the audit committee will be dispatched to Unitholders in due course.
Source : SGX