VIVA INDUSTRIAL TRUST T8B.SI Viva Industrial Trust: Initiate with BUY
- 58.1% of portfolio in business parks
- S$6.9m in additional NPI by FY18
- FY16F DPU yield of 9.8%
Business Park-focused REIT
- Viva Industrial Trust (VIT) is a Singapore- focused REIT which primarily invests in business parks and industrial real estate assets.
- Its current portfolio comprises eight industrial properties with a NLA of 3.0m sq ft.
SMRT CORPORATION LTD S53.SI SMRT Corporation Ltd: Defects on trains covered under warranty
- An article reported by Hong Kong media on Tuesday revealed that several of Singapore’s first China-made trains operated by SMRT Corporation Ltd (SMRT) are being shipped back to their manufacturers (i.e. CSR Qingdao Sifang and Kawasaki Heavy Industries) for structural defects.
BREADTALK GROUP LIMITED 5DA.SI BreadTalk Group: Helped by gain from divestment
- S$8.5m gain from sale of 112 Katong
- Deeper losses from Food Atrium
- Significant increase in overall staff costs
NOL NEPTUNE ORIENT LINES LIMITED N03.SI Neptune Orient Lines: Stuck in the red
- Neptune Orient Lines Ltd’s (NOL) 1Q16 core earnings (liner business) remained in the red as net loss widened 190.5% YoY to US$105.1m.
- 1Q16 liner revenue fell 28.0% YoY to US$1.14b due to falling freight rates and weak container trade demand.
OUE HOSPITALITY TRUST SK7.SI OUE Hospitality Trust: 1Q16 results in line with expectations
- Gross revenue up 2.0% YoY
- Flat REVPAR for MOS, CPCA
- Weak retail performance
ROXY-PACIFIC HOLDINGS LIMITED E8Z.SI Roxy-Pacific Holdings: Impacted by absence of Centropod TOP
- Roxy-Pacific Holdings reported that its 1Q16 PATMI fell 79% YoY to S$9.9m mostly due to the absence of profit recognition from the TOP of Centropod@Changi in the corresponding period last year.
CWT LIMITED C14.SI CWT Ltd - 1Q16 WITHIN EXPECTATIONS
- Improvement in logistics margin
- Privatisation still a possible catalyst
- Keep forecasts largely unchanged
Ascendas REIT ASCENDAS REAL ESTATE INV TRUST A17U.SI Ascendas REIT - DRAG FROM PERFORMANCE FEES IN 4QFY16
- 4QFY16 DPU slipped 8.1% YoY
- Positive FY16 rental reversions of 7.0%
- Write-down of Australian portfolio
STARHUB LTD CC3.SI StarHub Ltd - KEEPS FY16 GUIDANCE; BUY
- NPAT met 25% of FY16 estimate
- Maintains FY16 guidance
- Expected 18% total return from here
PACC OFFSHORE SVCS HLDG LTD POSH U6C.SI PACC Offshore Services Holdings - BUOYED BY JV IN 1Q16
- Results in line
- Offshore accom supporting earnings
- Insufficient to offset weakness in other areas
DBS GROUP HOLDINGS LTD D05.SI DBS Group - 1Q Beats Expectations
- Market beating 1Q
- Expecting loans growth of 2-3%
- Retain BUY
SEMBCORP INDUSTRIES LTD U96.SI Sembcorp Industries: Overseas utilities growth on track
- Decent 1Q16 results
- Overseas utilities bolstering earnings
- Stock has retreated since earlier run up
REITASCOTT RESIDENCE TRUST A68U.SI Ascott Residence Trust: Second acquisition in the US
- Ascott Residence Trust (ART) announced that it has entered into a conditional sale and purchase agreement to acquire a hotel known as Sheraton Tribeca New York Hotel located in Downtown Manhattan, US.
- The purchase consideration is US$158m (~S$218m), which represents a 4.8% discount to the independent valuation of US$166m.
SEMBCORP INDUSTRIES LTD U96.SI Sembcorp Industries: Up 38% since 21 Jan 2016 low of S$2.19
- Since our 29 Jan 2016 sector report in which we highlighted the undervaluation of Sembcorp Industries’ (SCI) utilities segment, its share price has appreciated by 35%, compared to the STI’s 10% gain over the same period.
- In Jan, fear of an SMM privatisation by SCI was at its peak, and that weighed on SCI’s share price.
ROXY-PACIFIC HOLDINGS LIMITED E8Z.SI Roxy-Pacific Holdings: Executing on diversification strategy
- Continues expansion in Australia
- Launched Noku Roxy hotel brand
- Prudent land-banking in SG
ASCOTT RESIDENCE TRUST A68U.SI CDL HOSPITALITY TRUSTS J85.SI FRASERS COMMERCIAL TRUST ND8U.SI MAPLETREE LOGISTICS TRUST M44U.SI Singapore REITs - SECTOR OUTLOOK
- Retail REITs: Preference remains for suburban-focused retail REITs.
- Office REITs: Proactive approach by REIT managers.
- Industrial REITs: Macro and supply woes.
- Hospitality REITs: Outlook still largely cautious.
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CAPITALAND MALL TRUST C38U.SI FRASERS CENTREPOINT TRUST J69U.SI KEPPEL DC REIT AJBU.SI MAPLETREE LOGISTICS TRUST M44U.SI Singapore REITs - Still Weathering the Storm
- Weakness seen in hospitality sector
- Flight to safety
- FCT, KDCREIT and MLT our top picks
S-REITs have proven to be a defensive haven
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CDL HOSPITALITY TRUSTS CDLHT J85.SI ASCOTT RESIDENCE TRUST A68U.SI Hospitality REITs: Outlook still largely cautious
- Recent statistics released from Singapore Tourism Board (STB) revealed that overall international visitor arrivals to Singapore grew by a marginal 0.9% to 15.2m in 2015. This comes in at close to the mid-end of STB’s forecast range of 15.1-15.5m visitors for the full year.
- Tourism receipts dipped 6.8% to S$22.0b.
OUE HOSPITALITY TRUST SK7.SI OUE Hospitality Trust: Lower DPU forecasts by 15% to 17%; Maintain HOLD
- Rights issue to fund CPEX acquisition
- Extension of a prime asset at Changi
- Acquisition is DPU-dilutive
SEMBCORP MARINE LTD S51.SI Sembcorp Marine: To post net loss in 4Q15
- Sembcorp Marine (SMM) issued a profit warning last evening, saying it expects to report a net loss for 4Q15 and a significant decline in net profit for FY15. In the statement, SMM attributed this to the challenging operating environment and customers deferring or seeking to defer their rig orders.
- We believe this could be partly due to a profit reversal from the jack-up rig in dispute with Marco Polo Marine; there has also been talk that Seadrill may be reevaluating its US$568m semi-submersible rig (West Rigel) which it ordered in Apr 2012.
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