Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/oue-commercial-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:912" rel="noopener">OUE Commercial REIT (OUECT SP)</a> completed S$978m unsecured sustainability-linked loan refinancing</li><li>Telok Blangah House relaunched at a lower guided price of S$1,744psf</li><li>Shunwei Capital’s co-founder looks to acquire 999-year leasehold property in Bali Lane for S$23m; Samsung Hub strata office transacts at S$4,050psf</li></ul>

OUE Commercial REIT (OUECT SP) completed S$978m unsecured sustainability-linked loan refinancingTelok Blangah House relaunched at a lower guided price of S$1,744psfShunwei Capital’s co-founder looks to acquire 999-year leasehold property in Bali Lane for S$23m; Samsung Hub strata office transacts at S$4,050psf

ASEAN Builder's Scoop (18Aug22) - OUECT Secured Largest Sustainability-Linked Loan in SREIT to Date

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In June-July I warned of a reinvestment trade into S-REITs due to the S$2.0-3.0bn cash-out by investors in Mapletree North Asia Commercial Trust and sellers into the SPHREIT Chain Offer.</li>
<li>Many investors who would need to re-allocate. The trade was to buy major S-REITs. From my last insight, a basket is up 5.3%. MCT has already topped out vs peers.</li>
<li>The question is.... is there still a trade left to run?</li>
</ul>


In June-July I warned of a reinvestment trade into S-REITs due to the S$2.0-3.0bn cash-out by investors in Mapletree North Asia Commercial Trust and sellers into the SPHREIT Chain Offer.
Many investors who would need to re-allocate. The trade was to buy major S-REITs. From my last insight, a basket is up 5.3%. MCT has already topped out vs peers.
The question is.... is there still a trade left to run?


<ul><li><a href="https://www.smartkarma.com/entities/aims-amp-capital-industrial" target="_blank" data-smartkarma-citation="entities:933" rel="noopener">AIMS APAC REIT (AAREIT SP)</a> 1Q23 DPU +1.3% YoY; Robust occupancies and rental reversion continue to drive organic growth</li><li><a href="https://www.smartkarma.com/entities/mapletree-industrial-trust" target="_blank" data-smartkarma-citation="entities:40" rel="noopener">Mapletree Industrial Trust (MINT SP)</a> 1Q23 DPU +4.2% YoY; Flat quarterly performance despite occupancies trending up</li><li><a href="https://www.smartkarma.com/entities/keppel-dc-reit" target="_blank" data-smartkarma-citation="entities:85" rel="noopener">Keppel DC REIT (KDCREIT SP)</a> 2Q22 DPU +4.8% YoY; Robust occupancy, trading attractively at 5.3% FY23E yield</li></ul>

AIMS APAC REIT (AAREIT SP) 1Q23 DPU +1.3% YoY; Robust occupancies and rental reversion continue to drive organic growthMapletree Industrial Trust (MINT SP) 1Q23 DPU +4.2% YoY; Flat quarterly performance despite occupancies trending upKeppel DC REIT (KDCREIT SP) 2Q22 DPU +4.8% YoY; Robust occupancy, trading attractively at 5.3% FY23E yield

ASEAN Builder's Scoop (26Jul22) - AAREIT Robust Operating Metrics

Mapletree Pan Asia Commercial Trust / Event-Driven

<ul>
<li>Given recent corporate events in S-REIT land, there <em>could be</em> some considerable money to be allocated to the sector near-term</li>
<li>These flows come at a time when prices are down off highs and liquidity is low.</li>
<li>There could be some price impact on certain types of S-REITs near-term.</li>
</ul>


Given recent corporate events in S-REIT land, there could be some considerable money to be allocated to the sector near-term
These flows come at a time when prices are down off highs and liquidity is low.
There could be some price impact on certain types of S-REITs near-term.


Large Potential S-REIT Flows in the Next Two Weeks

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mapletree-commercial-trust" target="_blank" data-smartkarma-citation="entities:106:1" rel="noopener">Mapletree Commercial Trust (MCT SP)</a> has crept higher vs the Peer Baskets, especially in the last 4-6 weeks as Other S-REITs have weakened. </li>
<li>This sets the stage for a potentially large flowback into S-REITs as a class coming in a few weeks.</li>
<li>It may be time to reconsider positioning, looking at where MPACT has been and will be.</li>
</ul>



Mapletree Commercial Trust (MCT SP) has crept higher vs the Peer Baskets, especially in the last 4-6 weeks as Other S-REITs have weakened. 
This sets the stage for a potentially large flowback into S-REITs as a class coming in a few weeks.
It may be time to reconsider positioning, looking at where MPACT has been and will be.


MCT SP as MPACT Creeping Ever Higher Vs Peers

Singapore

OUE Real Estate Investment Trust (“OUE REIT”) is one of the largest diversified Singapore REITs (“S-REITs”) with total assets of S$6.0 billion as at 31 December 2022. With seven properties across the commercial and hospitality segments in Singapore and Shanghai, the property portfolio comprises more than 2.1 million square feet of prime office and retail space, and 1,643 upper upscale hotel rooms.

OUE REIT invests in income-producing real estate used primarily for commercial purposes (including real estate used primarily for office and/or retail purposes) in financial and business hubs, hospitality and/or hospitality-related purposes, as well as real estate-related assets.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

OUE REIT (OUECT SP)

ASEAN Builder's Scoop (18Aug22) - OUECT Secured Largest Sustainability-Linked Loan in SREIT to Date

Telok Blangah House on market for S$92m; AME REIT to list on 20Sep22, ample gearing for acquisitions; Phils BSP hints further rate hikes

SCCM Asia Research

Update on the S-REIT Re-Allocation Trade

The S-REIT Re-Allocation Basket is +5.3%(TR) from close after I wrote (25 July) to yesterday. Not enough excess value has traded. Should it run?...

Travis Lundy

ASEAN Builder's Scoop (26Jul22) - AAREIT Robust Operating Metrics

MINT flat quarterly performance; KDCREIT trades attractively at 5.3% yield; CLCT expects retail recovery in 2H22; OUECT massive hotel turnaround;...

SCCM Asia Research

Large Potential S-REIT Flows in the Next Two Weeks

There may be a large inflow into S-REITs next week. It could range from 7-25 days of ADV or more for a large number of higher-yielding REITs and...

Travis Lundy

MCT SP as MPACT Creeping Ever Higher Vs Peers

MCT has outperformed Peers and as Virtual MPACT, has mostly erased its underperformance since deal announcement. This changes the risk balance...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)