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  Bookmark this page   Wednesday, 10 Mar 2010
 
Today's Headlines
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 2009. The estimates bolster the earnings recovery theme for hospitality REITs CDL-Hospitality Trusts [CDREIT, NOT RATED] and Ascott Residence Trust (ART). We expect hospitality players to enjoy revenue growth this year on the back of improving occupancy and a stabilization (and potential recovery) in room rates. We also see scope for further earnings growth through acquisitions via a combination of debt and equity. CDREIT and ART are up 302% and 251% from their 2009 lows. Nevertheless, we believe ART’s valuations remain attractive at 0.92x book. Depending on the trajectory of the hospitality recovery, there could be room for further upwards earnings revisions (we are currently below consensus). We do not have a rating on CDREIT. Maintain BUY with S$1.38 fair value for ART, one of our top picks for the S-REIT sector.

 
  Market Pulse
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)
Hyflux, CDL, SAR, Li Heng, Rotary Engineering and Oceanus (25 Feb 2010)
Noble Group, UOL, Parkway, Yangzijiang & Hyflux (24 Feb 2010)
  Research
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 ...
CapitaCommercial Trust: Working towards refinancing
Recently, CapitaCommercial Trust (CCT) issued S$70m of fixed rate Medium Term Note and repurchased an aggregate principal amount of S$15m of its c ...
Genting: Universal Studios opening on 18 Mar
Genting Singapore (GS) intends to open the doors of Universal Studios Singapore (USS) to the public at 8.28am on 18 Mar 2010; this after wrapping ...
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 ...
Straits Asia Resources: Conference call with new CEO
Straits Asia Resources Ltd (SAR) hosted a post FY09 results conference call last evening, during which its new CEO Mr Martin Purvis allayed concer ...
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 ...
 
 Strategy
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 ...
Semiconductor Industry: Market recovery seems imminent
Recent quarterly results by semiconductor companies under coverage showed that chip and related segmental sales had improved in 4Q09, in line with ...
Singapore Property: Good results overshadowed by policy uncertainties
The 4Q09 results reporting season came to a close and majority of the property developers under our coverage reported earnings that exceeded our e ...
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