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  Bookmark this page   Friday, 25 Jul 2014
 
Today's Headlines
Ascendas REIT: Outlook remains healthy

Ascendas REIT (A-REIT) reported 1QFY15 DPU of 3.64 S cents, up 2.5% YoY. This is in line with our expectations. For the quarter, we note that positive rental reversion averaging 11.8% was achieved for leases renewed, as passing rents were still below the current market levels. Notably, the percentage of A-REIT’s rental due for renewal has been reduced from 21.3% at the start of FY15 to 15.4%, thanks to A-REIT’s proactive marketing and negotiation efforts. Looking ahead, management expects reversions to stay positive at mid-to-high single-digit rates in FY15. A-REIT announced two new asset enhancement initiatives (AEIs) to maximise the plot ratio and improve the marketability of the assets. We note that the acquisition of Hyflux Innovation Centre and AEI at 5 Toh Guan Road East was completed in 1Q, and both properties are expected to start contributing to A-REIT’s income. We maintain BUY with an unchanged fair value of S$2.45 on A-REIT.

 
  Market Pulse
Market Pulse: Suntec REIT, FCT, SATS, Vard, CMT, Ezion, Tee Int’l (23 Jul 2014)
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Market Pulse: CapitaCommercial Trust (21 Jul 2014)
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Market Pulse: First REIT (17 Jul 2014)
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Market Pulse: GAR, Ezion (15 Jul 2014)
Market Pulse: SPH REIT, Ezra Holdings (14 Jul 2014)
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Market Pulse: Tat Hong Holdings (10 Jul 2014)
  Research
Ascendas REIT: Outlook remains healthy
Ascendas REIT (A-REIT) reported 1QFY15 DPU of 3.64 S cents, up 2.5% YoY. This is in line with our expectations. For the quarter, we note that posi ...
CapitaMall Trust: Continued focus on AEIs
CapitaMall Trust (CMT) reported 2Q14 DPU of 2.69 S cents, up 6.3% YoY. The better performance, we note, was due mainly to higher secured rentals w ...
Frasers Centrepoint Trust: Boost from Changi City Point
Frasers Centrepoint Trust (FCT) reported 3QFY14 DPU of 3.022 S cents, up 6.0% YoY. This is largely in line with our expectation. Noteworthy in 3Q ...
Suntec REIT: Gaining strong traction
Suntec REIT announced 2Q14 DPU of 2.266 S cents, up marginally by 0.8% YoY. However, we note that only S$5.0m capital distribution was made in 2Q, ...
Vard Holdings: Recovery underway
Vard Holdings Limited’s (VARD) 2Q14 results came in within our expectations. Revenue was flat on a YoY basis at NOK2.9b. However, EBITDA surged 56 ...
SATS Ltd: Uninspiring 1QFY15 results
SATS’s 1QFY15 results came in below our expectations. PATMI dropped 6.3% YoY to S$43.3m, which is 4.6% below our estimate. This is due to: 1) lowe ...
 
 Strategy
Singapore Property: Deep value in West Orchard could be unlocked
With a dearth of upcoming projects in the Orchard retail space pipeline over 2015-17, we believe there could be a greater impetus for strategic re ...
Singapore REITs: Performing a reality check
Our assessment of the recent performance of S-REITs show that their fundamentals have generally remained sound, and S-REITs continue to benefit fr ...
Singapore Residential Property: Demand is out there but price-sensitive
We forecast residential prices to dip 10%-20% over 2014 – 2015 but see a price crash in excess of 20% to be unlikely, even after accounting for th ...
Strategy: Impact of Iraq conflict on companies
Oil prices have been more volatile of late due to the conflict in Iraq, with WTI crude rising close to about US$107/bbl and Brent US$113/bbl last ...
Consumer Sector: Run-up in valuation levels reminiscent of 2H13
We believe regional consumption growth ahead in China and selected ASEAN (Singapore, Malaysia, Indonesia, Philippines and Thailand) economies will ...
Technology Sector: Mixed performance as uncertainties remain
Continued macroeconomic uncertainties have manifested in the recent results of the cyclical tech sector. For companies under our coverage, Venture ...
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