CDLHTrust – SGX
CDL HOSPITALITY TRUSTS REPORTS STRONG GROWTH IN FIRST SIX MONTHS OF FY2007
- Continuing strength in the hospitality market:
- Income available for distribution of S$27.1 million for 1H FY2007 equivalent to 40% growth against projections
- Cumulative distribution for the period 1 January 2007 to 18 July 2007 to Stapled
Security Holders as at 18 July 2007 of 4.37 Singapore cents
- • Q2 FY 2007 ARR1 of S$203 and occupancy1 of 84.9%
• 1H FY2007 RevPAR1 increasing 29.4% to S$163 from proforma 1H FY2006
CDL Hospitality Trusts (“CDLHT”), a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment trust, and CDL Hospitality Business Trust (“HBT”), a business trust, is pleased to report strong growth for the second quarter and first six months of the financial year ending 31 December 2007 (“FY2007”).
Gross revenue in the quarter ended 30 June 2007 grew by 47.9% over IPO projections. Income available for distribution amounted to S$14.8 million, representing an increase of 52.1% over projections for the quarter.
Gross revenue for the six months ended 30 June 2007 grew by 38.8% over IPO projections. Income available for distribution amounted to S$27.1 million, representing an increase of 39.9% over projected distribution of S$19.4 million for the period. Distribution Per Unit (“DPU”) for the period from 1 January 2007 to 30 June 2007 is 3.86 Singapore cents, an increase of 40.4% over the projected DPU over the same period.
Source : SGX
Fortune – SGX
Distribution Per Unit Improved To 17.70 HK cents
Attractive Tax Exempt Yield Of 5.4%
31 July 2007. ARA Asset Management (Singapore) Limited (“ARASL”), as manager of Fortune Real Estate Investment Trust (“Fortune REIT”), is pleased to announce the results for Fortune REIT for the half year ended 30 June 2007 (“1H07”).
“We are pleased to continue to deliver stable returns and growth to our Unitholders. The net property income (“NPI”) for the quarter ended 30 June 2007 and 1H07 grew by 3.0% and 2.6% year on year (“Y-o-Y”). Correspondingly, the income available for distribution for 1H07 improved to HK$143 mil with a distribution per Unit (“DPU”) of 17.70 HK cents, reflecting an attractive tax exempt yield of 5.4%1 to Unitholders. In the reporting period, the portfolio of assets has also performed admirably with healthy rental reversion of 11% for 1H07. We are glad that ongoing asset enhancement initiatives in Waldorf Garden Property is on target as more than 80% of the enhanced space has been pre-committed at rents which are about 3 times over preceding rents. We believe Fortune REIT’s strong asset and financial performance has been driven by buoyant economic conditions, real wage growth, record low levels of unemployment and positive local consumption demand. We are optimistic that Hong Kong’s retail sector will continue to benefit from sustainable economic growth and positive social sentiments for the remainder of 2007.” Sam Wu, Chief Executive Officer of ARASL commented.
Source : SGX
Suntec – UOBKH
3Q07: Not Much Good News
NPI increased 4.3% yoy, DPU up 11.9% yoy to 2.1 Scts. Suntec REIT’s Q3 results recorded a gross revenue of S$46.7m, a 6.3% increase yoy, while NPI was only a mere 4.3% yoy increase at S$34.1m. The slight increase in revenue was a result of higher office rental income, partially offset by a S$0.2m (or 0.8%) dip in retail revenue. The committed office occupancy also strengthened to 99.3%. Property expenses were 12.0% higher than 3Q06 as a result of higher maintenance charges for Suntec City, marketing expenses and property taxes. DPU however, improved by 11.9% yoy to 2.1 Scts.
Proposed acquisition of One Raffles Quay. Suntec REIT has entered into a conditional share purchase agreement with Cavell (SPV holding one-third of issued share capital of One Raffles Quay) for the acquisition of One Raffles Quay for S$941.5m. The acquisition is expected to be yield accretive, taking into account potential rental top-up payments of S$103.5m over 54 months. The acquisition is targetted to complete by first quarter of 1Q08, upon which Suntec
REIT’s total portfolio would increase to S$4.8b.
Revise HOLD, fair value at S$2.31. Since our initiation with a HOLD at S$2.09, the share price has declined to the current price of S$1.86, and trading at an attractive yield of 4.41%. We will be revising our call and factor in higher acquisitions to our FY07F forecast of S$4.0b at present.
KREIT – UOBKH
Proposed Maiden Acquisition of One Raffles Quay
Proposed maiden acquisition of One Raffles Quay. K-REIT has announced the proposed maiden acquisition of one-third interest in One Raffles Quay for S$941.5m from the its sponsor, Keppel Land’s divestment of the property. It has also entered into a conditional share purchase agreement with Boulevard for the acquisition, who will provide K-REIT with an income support of S$103.4m through 2011 should the financial performance of the property does not meet certain requirements. The acquisition will be funded through equity fund raising whereby Keppel Land will subscribe to the issued new units to maintain its proportionate stake of 40.7% in K-REIT.
One Raffles Quay – Prime office property. One Raffles Quay is one of the largest prime office building with an NLA of 1.3m sf located in the heart of CBD. It comprises of a 50-storey North Tower and a 29-storey South Tower, with an underground link to the Raffles MRT station, a plaza featuring a water fountain, and a sheltered drop-off point and carpark hub with 713 carparking lots. The property also boasts of large banks and financial institutions such as ABN AMRO, Deutsche Bank AG, Ernst & Young and UBS AG as its tenants.
Potential trigger to a series of injections. With the first seen divestment of interest in One Raffles Quay from Keppel Land to K-REIT, we believe this is only the start to a series of potential injections of properties into K-REIT from its parent. The proposed acquisition will also bring K-REIT’s portfolio to S$1.6b from S$677m, a step nearer to meeting its target portfolio of S$2.0b over the next few years.
Maintain BUY, target price at S$3.39. We have previously assumed S$100m-150m of acquisitions p.a in our model, and will be revising our acquisition assumptions to accommodate a more aggressive scenario. Currently, it has a gearing of 28.0%. We re-iterate BUY on K-REIT with a target price of S$3.39. The stock is currently trading at a yield of 2.57%.
Cambridge – SGX
Cambridge Industrial Trust’s (“CIT”) DPU outperform forecast by 22.2%
Highlights:
• Annualised distribution per unit (“DPU”) of 6.257 cents is 22.2% higher than the forecast DPU of 5.120 cents for the second quarter ended 30 June 2007.
• Net Property Income of S$11.0 million exceeds IPO forecast by 22.8%, total Distributable Income to Unitholders exceeds forecast by 18.5%, giving DPU of 1.560 cents for the second quarter ended 30 June 2007.
• In 2Q2007, three investment properties valued at S$40.4 million were acquired bringing total investment properties under management to S$662.4 million as at 30 June 2007.
• Option Agreements with a total asset value of approximately S$196.38 million were signed and announced to date. MOUs for approximately S$82.47 million worth of properties were entered into as at 31 July 2007.
Source : SGX