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Bookmark this page   Saturday, 13 Mar 2010

Today's Headlines LMIR Trust: Implications of Matahari Department Stores sale Matahari Department Stores (MDS), a related company of LMIR Trust (LMRT), is being sold by its 90.8% owner PT Matahari Putra Prima (MPP). MDS, which has over 80 department stores in Indonesia, is LMRT’s second largest mall tenant – it contributed 4.1% of mall portfolio gross income in FY09. Meanwhile, all seven retail spaces are leased to MPP for a term of 10+10 years starting from 2007, and a significant portion of that space is utilized by MDS. We understand that the sale has no impact on the current lease agreements between MDS and LMRT. W believe the commercial relationship between LMRT and MDS still makes sense – both on a target customer level and also because LMRT has consistently been able to maintain portfolio occupancies significantly above market. Still there could be a risk of tighter negotiations on rents and lease terms. Our view on LMRT is unchanged. We maintain our BUY rating and S$0.59 fair value. Previous Headlines >>     Market Pulse Property, LMIR & Parkway (12 Mar 2010) Rig Builders and Valuetronics (11 Mar 2010) CapitaCommercial and Hospitality REITs (9 Mar 2010) Land Transport, Genting and Property Sector (8 Mar 2010) Oil & Gas and Straits Asia Resources (5 Mar 2010) S-REIT, Suntec REIT, Semiconductor & Midas (4 Mar 2010) Property & Swiber (3 Mar 2010) Wilmar, Shipping Trust and Swiber (2 Mar 2010) Midas, Venture, UOB, Wilmar, Property & Straits Asia (1 Mar 2010) Rotary, GAR, CityDev, Li Heng & Oceanus (26 Feb 2010) more >>   Research LMIR Trust: Implications of Matahari Department Stores sale Matahari Department Stores (MDS), a related company of LMIR Trust (LMRT), is being sold by its 90.8% owner PT Matahari Putra Prima (MPP). MDS, whi ... Singapore Property: Finding value among office landlords Leasing activities in the office market continue to pick up over the recent months. We continue to see a flight to quality and the development of ... Singapore Rig Builders: Rig tender delay but fundamentals remain intact Petrobras has delayed its tender for 28 rigs. The latest deadline for the first package has been pushed to May 18, 2010, compared to March 18, 201 ... Valuetronics Holdings: Maintain BUY on brighter outlook Market research firm iSuppli recently projected for the global electronics contract manufacturing industry to rise by 7.8% in 2010, following a pa ... Hyflux Ltd: Secures S$43.8m Jurong Island Job Hyflux Ltd has just been awarded a S$43.8m contract by Tuas Power unit TP Utilities (TPU) to undertake the engineering, procurement and constructi ... Commodities: Prefer supply chain managers over pure miners Commodity players turned in generally satisfactory 4Q CY09 results. Olam Int’l (Olam) surpassed expectations, while Noble Group (Noble) and Strait ... more >>    Strategy Singapore Property: Finding value among office landlords Leasing activities in the office market continue to pick up over the recent months. We continue to see a flight to quality and the development of ... Commodities: Prefer supply chain managers over pure miners Commodity players turned in generally satisfactory 4Q CY09 results. Olam Int’l (Olam) surpassed expectations, while Noble Group (Noble) and Strait ... Hospitality REITs: Riding on earnings recovery The Singapore Tourism Board (STB) is projecting 11.5m to 12.5m visitor arrivals to Singapore in 2010, up 18.6% to 28.9% from the 9.7m visitors in ... Land Transport Sector: Prospects looking bright Singapore public transportation stocks have performed well in 2009, in line with market expectations. Going forward, we continue to view the Singa ... Oil and Gas: 4Q09 results wrap With the close of the 4Q09 results reporting season, we find that oil and gas companies under our coverage turned in a mixed bag of results. The r ... S-REITs: Upgrading to Overweight; Ascott & Suntec top picks Five out of the eight S-REITs under our coverage reported 4Q CY2009 earnings in line with our estimates. The remaining three – A- REIT, Mapletree ... more >>

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