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Be careful of the sell off in Singapore REIT.
http://mystocksinvesting.com/singapore-reits/singapore-reit-sell-off-should-you-take-profit-now/
Suntec REIT dropped 2.4%!
Suntec REIT's net property income fell 37.4% to S$30.7m
Blame it on the partial closure of SCM.
According to OCBC Investment Research, Suntec REIT announced its 1Q13 results after the market close yesterday. Gross revenue fell 32.2% YoY to S$49.7m, while NPI saw a 37.4% decline to S$30.7m amid the partial closure of Suntec City Mall (SCM) and Suntec Singapore for asset enhancement works (AEI).
Here's more:
However, distributable income dropped by a more benign rate of 13.3% to S$47.6m. Further aided by a S$2.7m top-up from Chijmes sale proceeds, the distributable amount eased only by 8.4% to S$50.3m.
This translates to a DPU of 2.228 S cents, down 9.2% YoY. We deem the results to be well within expectations, given that the quarterly distribution made up 24-25% of our and consensus FY13F DPU.
Retail segment registered a 38.9% YoY decrease in revenue as another portion of SCM next to Promenade MRT station was closed in Mar to execute the Phase 2 AEI. We also note that Suntec Singapore made minimal contribution during the quarter.
However, the office segment continued to perform, achieving a 7.6% growth in revenue on the back of positive rental reversions and consistently high occupancy of 99.7% (unchanged QoQ). Management updated that it has signed a total of 185,000 sqft of leases in 1Q, leaving it with only 10.3% of office leases due to expire in 2013. As such, we expect the segment to continue to exhibit resilience for the rest of FY13.
Pre-commitments for Suntec City Mall’s (SCM) Phase 1 post-AEI leases hit 83% in 4Q12 and we believe most were secured above the targeted SGD12.59 psf/mth. Suntec also reported that 37% of Phase 2 NLA has been pre-committed.
We noted that Phase 2 AEI for SCM has commenced and the intensity of the refurbishment works could mean that overall AEI works should wrap up as scheduled by 4Q14.
Optimistic on SCM Rental Uplift. We estimate that the average passing rents for SCM post-AEI may be secured at SGD13.50 psf/mth. We think this is still conservative, given that passing rents at nearby Raffles City Mall are contracted at ~SGD18-19 psf/mth.
In addition, the recent AEI at Causeway Point (suburban mall in Woodlands) has managed to uplift its average rent from SGD10.20 psf/mth (pre-AEI) to current SGD13.52 psf/mth, and we expect Suntec to do likewise, if not better, for a Downtown Core mall.
High chance of DPU top-up. Suntec received cash proceeds of ~SGD147m from the sale of Chijmes in 1Q12. We think it will keep the flexibility for DPU top-up in 2013, when its mall occupancy will be most affected (DPU: 9.22 cents in FY13F vs 9.49 cents in FY12).
1Q13/2Q13 quarters will witness the largest occupancy dip and we do not rule out the likelihood of a DPU top-up as early as 1H13.
Suntec REIT's DPU to dip 5%
No thanks to ongoing renovation works at SCM.
According to Maybank Kim Eng, Suntec’s 1Q13 DPU is likely to be lackluster, dragged down by Suntec City Mall’s (SCM) ongoing renovation works. Maybank estimates that the largest dip on FY13 DPU will occur in 1Q-2Q13, when Phase 1 new tenants have yet to start paying rentals and Phase 2 old tenants are being vacated for the AEI.
Maybank noted that it forecasts 1Q13 DPU at 2.20 SG-cts (-5% QoQ -10% YoY) and FY13 DPU at 9.2 SG-cts. (-3% YoY).
Here's more:
iluvboost ( Date: 24-Apr-2013 10:01) Posted:
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iluvboost ( Date: 24-Apr-2013 10:00) Posted:
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more upside from new Fund buyin?
http://citywire.co.uk/global/henders...e-fund/a672141
guoyanyunyan ( Date: 24-Apr-2013 09:52) Posted:
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SG Daily: Suntec REIT Singapore Daily Suntec REIT: Look Past the Expected Dip in 1Q13 DPU Buy TP $2.07 Suntec’s 1Q13 DPU is likely to be lackluster, dragged down by Suntec City Mall’s (SCM) ongoing renovation works. We estimate that the largest dip on FY13 DPU will occur in 1Q-2Q13, when Phase 1 new tenants have yet to start paying rentals and Phase 2 old tenants are being vacated for the AEI. We forecast 1Q13 DPU at 2.20 SG-cts (-5% QoQ -10% YoY) and FY13 DPU at 9.2 SG-cts. (-3% YoY). Suntec received cash proceeds of ~SGD147m from the sale of Chijmes in 1Q12. We think it will keep the flexibility for DPU top-up in 2013, when its mall occupancy will be most affected (DPU: 9.22 cents in FY13F vs 9.49 cents in FY12). 1Q13/2Q13 quarters will witness the largest occupancy dip and we do not rule out the likelihood of a DPU top-up as early as 1H13. Reiterate BUY with a TP of SGD2.07, priced at P/B of 1x. ...Last Done: $1.95... |
SG Daily: Suntec REIT
Suntec City Mall AEI in full gear Buy TP $1.90 Asset enhancements at Suntec City Mall (SCM) have stepped up with the impending completion of Phase 1 and the commencement of Phase 2. Judging by the intensity of the refurbishment works, the overall AEI should be completed on schedule in 4Q14. Post-AEI rental increases could also surpass expectations. We think SGD13.50 psf/pm (vs SGD12.59 psf/pm targeted by Suntec) is possible and we have thus raised FY14F DPU by 1% to reflect this. This should offset the expected FY13 dip in DPU caused by the AEI. Reiterate BUY on a higher TP of SGD1.90. We are positive on the earnings enhancement potential of the ongoing AEI, which has seen pre-commitments hitting 83% for Phase 1 and 37% for Phase 2, which is completing at the end of 2013.
... Prev Close: $1.76 ...
Just to add on the followings regarding the CB:
- Initial Conversion Price : S$2.154 for each new Unit.
- The Issuer expects to use 100% of the net proceeds from the Issue to refinance existing debt.
Trade with care!
Suntec Real Estate Investment Trust (Suntec Reit) has raised S$280 million from its issue of convertible bonds at an interest rate of 1.4 per cent per annum.
The bonds can be converted into cash and new ordinary units in the capital of reit, and are due on March 18, 2018.
" The issue was oversubscribed given strong investor demand and has been fully placed to institutional investors and accredited investors," the reit said.
Citigroup Global Markets Singapore and Nomura Singapore Limited are the joint lead managers, while Citigroup and Nomura International plc are the joint underwriters for the issue.
yeeen123 ( Date: 23-Jul-2012 10:10) Posted:
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krisluke ( Date: 23-Jul-2012 06:53) Posted:
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| No. | Date Announced |
Date Transacted |
Company Name |
Name | Relation | Type | Details | Quantity | Price |
| 1 | 2012-07-20 | 2012-07-20 | SUNTEC REAL ESTATE INV TRUST | Lim Hwee Chiang | Director | Buy | # Others | 5480341 | 1.3328 |