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Bookmark this page   Sunday, 01 Aug 2010

Today's Headlines LMIR Trust: DPU disappoints on higher tax expenses LMIR Trust (LMIR) reported 2Q net property income of S$21.6m, up 17% YoY and 6% QoQ on the strong Indonesian Rupiah (IDR). NPI was in line with our S$21.6m estimate. Retail mall occupancy improved 360 bps to 97.4% from three months ago; this is significantly higher than the market average of 82.7%. Conversely, DPU fell 20% YoY and 13% QoQ to 1.04 S cents as the hedged rate on distributions is more unfavorable than the physical rate, resulting in a realized cash loss. While we had expected the forex impact, DPU was 14% below our 1.21 S cents estimate due to higher taxes; this as LMIR is now incurring revenue tax on the additional service charge and utilities income. We have adjusted our tax estimates upwards. On the plus side, we have increased our occupancy estimates. Our FY10-11F DPU estimates fall 11.5% and 12.6% to 4.4 S cents and 4.5 S cents. Our fair value estimate (at an unchanged 20% discount to SOTP value) falls to S$0.52 from S$0.55 previously. With an estimated total return of 14%, maintain BUY on valuation grounds. Previous Headlines >>     Market Pulse DBS, SATS, CPO Sector, KepCorp and LMIRT (30 Jul 2010) MLT and SingPost (29 Jul 2010) Koda and Telecom Sector (28 Jul 2010) Parkway, Starhill, MLT & Ezion (27 Jul 2010) FCT, SIAE and MLT (26 Jul 2010) KepCorp, Suntec REIT and ART (23 Jul 2010) Golden-Agri, CCT, KepCorp, Wilmar and CMT (22 Jul 2010) Ezion, OSIM, KepLand, Midas and CCT (21 Jul 2010) NOL, Viking, Yangzijiang and Ezion (20 Jul 2010) Midas, A-REIT, Olam and CCT (19 Jul 2010) more >>   Research LMIR Trust: DPU disappoints on higher tax expenses LMIR Trust (LMIR) reported 2Q net property income of S$21.6m, up 17% YoY and 6% QoQ on the strong Indonesian Rupiah (IDR). NPI was in line with ou ... CPO Sector: Near-term outlook positive Crude palm oil prices have recovered quite nicely to hover around US$750/ton, after dipping to a low of US$682/ton in early Jul; this amidst weath ... SATS Limited: Strong execution in 1QFY11 SATS Limited reported its 1QFY11 results last evening. Revenue came in at S$382.1m (+8.6% YoY, -2.2% QoQ), forming 24.1% of our FY11 sales forecas ... CPO Sector: Near-term outlook positive Crude palm oil prices have recovered quite nicely to hover around US$750/ton, after dipping to a low of US$682/ton in early Jul; this amidst weath ... Mapletree Logistics Trust: Acquisition frenzy continues Mapletree Logistics Trust (MLT) intends to acquire three distribution centers in the Kanto region (Greater Tokyo) of Japan. The total acquisition ... Singapore Post: Cautiously optimistic on its outlook Singapore Post (SingPost) reported a 13.5% YoY rise in revenue to S$138.2m and a 3.2% increase in net profit to S$40.7m in 1QFY11, just 1% shy of ... more >>    Strategy Property: Pre-sales momentum continued to slow in June Property developers stayed cautious in Jun 2010, with launches of non-landed property units falling 10.9% MoM to 991 units, the lowest number in 2 ... Oil and Gas Sector: Updates on deepwater drilling ban Following a US federal judge’s ruling against the initial deepwater drilling moratorium in the Gulf of Mexico (GOM) and failed appeals by the US g ... S-REITs: Guidance could diverge at 2Q10 results Economists are increasingly turning positive on Singapore, with a median real GDP growth forecast for 2010 of 10.65% (Bloomberg). Singapore’s stro ... Semiconductor Industry: Stronger sequential growth in May In line with our expectation that the worldwide semiconductor sales growth is likely to accelerate in May, statistics as published by Semiconducto ... Oil and Gas sector: Near term uncertainties According to ODS Petrodata, 73 out of 123 mobile offshore drilling rigs are under contract in the Gulf of Mexico (GOM), but only 35 are actually w ... Singapore Property: 2Q10 flash estimates released Last week, the URA and HDB released the flash estimates of price indexes for 2Q10. The URA Property Price Index gained 5.2% QoQ in 2Q10 and has su ... more >>

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