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/capitaland-investment-ltd-si" target="_blank" data-smartkarma-citation="entities:33774" rel="noopener">CapitaLand Investment (CLI SP)</a>’s Ascott acquires Oakwood Worldwide; Boosting recurring fee income streams and AUM</li><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> regulatory approvals for acquisition of 315 Alexandra Road not obtained by target date</li><li>NTUC Income divests 16 Collyer Quay to China’s Bright Ruby for S$3,617psf; YTD office deals are just ~9% shy of total 2021</li></ul>

CapitaLand Investment (CLI SP)’s Ascott acquires Oakwood Worldwide; Boosting recurring fee income streams and AUMAIMS APAC REIT (AAREIT SP) regulatory approvals for acquisition of 315 Alexandra Road not obtained by target dateNTUC Income divests 16 Collyer Quay to China’s Bright Ruby for S$3,617psf; YTD office deals are just ~9% shy of total 2021

ASEAN Builder's Scoop (4Jul22) - Ascott Buys Oakwood, Boosting Fee Income

<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> extends target date for 315 Alexandra Road to 1Jul22</li><li><a href="https://www.smartkarma.com/entities/united-hampshire-us-reit" target="_blank" data-smartkarma-citation="entities:28874" rel="noopener">United Hampshire US REIT (UHU SP)</a> acquires US$85.7m grocery-anchored freehold asset; DPU accretive by ~2.1%</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> divests Michigan’s Data Centre for US$10m</li></ul>

AIMS APAC REIT (AAREIT SP) extends target date for 315 Alexandra Road to 1Jul22United Hampshire US REIT (UHU SP) acquires US$85.7m grocery-anchored freehold asset; DPU accretive by ~2.1%Mapletree Industrial Trust (MINT SP) divests Michigan’s Data Centre for US$10m

ASEAN Builder's Scoop (10Jun22) - AAREIT Extends 315 Alexandra Target Date to 1Jul22

Equity Bottom-Up

<div><div><div><div><ul><li>Results ahead of our estimates: 2H22 revenue grew by 18.9% YoY to S$77.1m and 2H22 NPI jumped 16.6% YoY to S$55.5m.</li></ul><div><div><div><ul><li>Robust rent reversions and occupancy: ~5.9% of portfolio NLA secured new and renewal leases with overall rent reversions at +14.9% (+0.2% in 3Q22) and stable occupancy rate of 97.6% in 4Q22 (3Q22: 97.6%).</li></ul><div><div><div><div><ul><li>Utility cost manageable; Debt sufficiently hedged: Portfolio leases have been structured in a way that utility costs are passed through to tenants, and hence mgmt.</li></ul></div></div></div></div></div></div></div></div></div></div></div>

Results ahead of our estimates: 2H22 revenue grew by 18.9% YoY to S$77.1m and 2H22 NPI jumped 16.6% YoY to S$55.5m.Robust rent reversions and occupancy: ~5.9% of portfolio NLA secured new and renewal leases with overall rent reversions at +14.9% (+0.2% in 3Q22) and stable occupancy rate of 97.6% in 4Q22 (3Q22: 97.6%).Utility cost manageable; Debt sufficiently hedged: Portfolio leases have been structured in a way that utility costs are passed through to tenants, and hence mgmt.

<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> 2H22 DPU -4.8% YoY; Robust rent reversions to end the fiscal year</li><li><a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934" rel="noopener">ESR-REIT (EREIT SP)</a> 1Q22 DPU -9.6% YoY; Rising utilities costs despite steady underlying performance  </li><li><a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870" rel="noopener">Frasers Centrepoint Trust (FCT SP)</a> 1H22 DPU +2.3% YoY; Omicron wave tapering shopper traffic</li></ul>

AIMS APAC REIT (AAREIT SP) 2H22 DPU -4.8% YoY; Robust rent reversions to end the fiscal yearESR-REIT (EREIT SP) 1Q22 DPU -9.6% YoY; Rising utilities costs despite steady underlying performance  Frasers Centrepoint Trust (FCT SP) 1H22 DPU +2.3% YoY; Omicron wave tapering shopper traffic

ASEAN Builder's Scoop (27Apr22) - AAREIT Robust Rent Reversions

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

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With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

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<div class="content-caption">Insti investors continue to net buy sreits</div>
<p></p>
<p>The iEdge S-Reit Index recovered 2.5 per cent in total returns over the past 5 sessions (Feb 25, 2022 through to Mar 3, 2022), after a 2 per cent decline seen last Thursday (Feb 24) as global markets saw major moves amid the market volatility.</p>
<p>Despite the dip, the iEdge S-Reit Index has returned 0.6 per cent in total returns for the whole period from Feb 24, 2022 through to Mar 3, 2022.</p>
<p>This means it outperformed the FTSE EPRA Nareit Asia ex-Japan Index which declined 0.7 per cent during the same period.<br><br>Within the S-Reit sub-sectors, gainers were led by the specialised, healthcare and office Reits while decliners were led by hospitality, retail and diversified Reits.</p>
<p>During the period, institutional investors have been a key driver in S-Reits' fund flow activities, accumulating net institutional inflows of S$30.4 million.</p>
<p>Retail investors on the other hand, net sold S$42.6 million for the sector.<br><br>In terms of sub-sectors, institutional flows were driven by inflows seen in diversified S-Reits (+S$16.7 million), specialised/data centre S-Reits (+S$6.9 million), and office S-Reits (+S$6.7 million).</p>
<p>The largest retail outflows were seen in diversified S-Reits (-S$22.8 million), office S-Reits (-S$6.6 million), and industrial S-Reits (-S$5.5 million).</p>
<p>On a year-to-date basis, S-Reits have seen a 2 per cent decline, against the Straits Times Index's 4.4 per cent total returns, while the FTSE EPRA Nareit Asia ex-Japan Index has seen a decline of 2.3 per cent.</p>
<p>Interest rates continue to be a key focus for the sector, as expectations of a rate hike grow.</p>
<p>As the earnings season concludes for the sector, broad based distribution per unit growth and healthy occupancy rates remain a common theme.<br><br><strong><em>REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/green-shoots-for-retail-and-hospitality-s-reits-amid-new-pandemic-phase" target="_blank" rel="noopener">&nbsp;</a><a href="https://www.businesstimes.com.sg/companies-markets/institutional-investors-continue-to-net-buy-s-reits" target="_blank" rel="noopener">read&nbsp;</a>the original version.</em></strong></p>


Insti investors continue to net buy sreits

The iEdge S-Reit Index recovered 2.5 per cent in total returns over the past 5 sessions (Feb 25, 2022 through to Mar 3, 2022), after a 2 per cent decline seen last Thursday (Feb 24) as global markets saw major moves amid the market volatility.
Despite the dip, the iEdge S-Reit Index has returned 0.6 per cent in total returns for the whole period from Feb 24, 2022 through to Mar 3, 2022.
This means it outperformed the FTSE EPRA Nareit Asia ex-Japan Index which declined 0.7 per cent during the same period.  Within the S-Reit sub-sectors, gainers were led by the specialised, healthcare and office Reits while decliners were led by hospitality, retail and diversified Reits.
During the period, institutional investors have been a key driver in S-Reits' fund flow activities, accumulating net institutional inflows of S$30.4 million.
Retail investors on the other hand, net sold S$42.6 million for the sector.  In terms of sub-sectors, institutional flows were driven by inflows seen in diversified S-Reits (+S$16.7 million), specialised/data centre S-Reits (+S$6.9 million), and office S-Reits (+S$6.7 million).
The largest retail outflows were seen in diversified S-Reits (-S$22.8 million), office S-Reits (-S$6.6 million), and industrial S-Reits (-S$5.5 million).
On a year-to-date basis, S-Reits have seen a 2 per cent decline, against the Straits Times Index's 4.4 per cent total returns, while the FTSE EPRA Nareit Asia ex-Japan Index has seen a decline of 2.3 per cent.
Interest rates continue to be a key focus for the sector, as expectations of a rate hike grow.
As the earnings season concludes for the sector, broad based distribution per unit growth and healthy occupancy rates remain a common theme.  REIT Watch is a weekly column on The Business Times,&nbsp;read&nbsp;the original version.

REIT Watch - Institutional Investors Continue to Net Buy S-Reits

Singapore

AIMS APAC REIT is a real estate investment trust. The Trust's principal investment objective is owning and investing in a diversified portfolio of income-producing industrial real estate assets throughout Asia Pacific, including warehousing and logistics, manufacturing, business parks and hi-tech spaces.

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AIMS APAC REIT (AAREIT SP)

ASEAN Builder's Scoop (4Jul22) - Ascott Buys Oakwood, Boosting Fee Income

AAREIT may relinquish Alexandra Rd acq; 16 Collyer Quay sold for S$3,617psf; Cuscaden owns ~62% of SPHREIT; ARAUS divests 4 Hyatt Place; FLI starts...

SCCM Asia Research

ASEAN Builder's Scoop (10Jun22) - AAREIT Extends 315 Alexandra Target Date to 1Jul22

UHU buys freehold asset for US$85.7m; MINT divests MI data center for US$10m; TCC seeks loan to privatize FHT; Cape Royale Sentosa up for sale from...

SCCM Asia Research

Aims Apac Reit - Steady Growth Ahead

FY22 DPU was +5.7 YoY, making up ~106% of our FY forecast. Portfolio occupancy remained high at 97.6%, while rent reversions came in robustly at...

SCCM Asia Research

ASEAN Builder's Scoop (27Apr22) - AAREIT Robust Rent Reversions

EREIT rising utilities cost; FCT tapering shopper traffic; MINT boosted by acquisitions; SSREIT voted down Charlie Chan as Director

SCCM Asia Research

REIT Watch - Institutional Investors Continue to Net Buy S-Reits

The iEdge S-Reit Index recovered 2.5 per cent in total returns over the past 5 sessions (Feb 25, 2022 through to Mar 3, 2022), after a 2 per...

Singapore Exchange Ltd (SGX)

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