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/cromwell-european-real-estate" target="_blank" data-smartkarma-citation="entities:25889" rel="noopener">Cromwell European REIT (CERT SP)</a> divests an office asset in Finland and acquires a UK logistics asset</li>
<li>
<a href="https://www.smartkarma.com/entities/ec-world-reit" target="_blank" data-smartkarma-citation="entities:22842" rel="noopener">EC World Reit (ECWREIT SP)</a> successfully extended maturity of onshore and offshore facilities; CEO bought more units</li>
<li>302 units of Ho Bee-IOI project Cape Royale at Sentosa Cove sold 50% on launch day at S$2,103psf ASP</li>
</ul>



Cromwell European REIT (CERT SP) divests an office asset in Finland and acquires a UK logistics asset

EC World Reit (ECWREIT SP) successfully extended maturity of onshore and offshore facilities; CEO bought more units
302 units of Ho Bee-IOI project Cape Royale at Sentosa Cove sold 50% on launch day at S$2,103psf ASP


ASEAN Builder's Scoop (7Jul22) - CERT Divests Finland Office, Buys UK Logistics

<ul><li><a target="_blank">EC World REIT (ECWREIT SP) extends onshore loan facilities to Apr23; Receiving same terms as offshore facilities</a></li><li>CBD Grade A office rents may surpass pre-pandemic peak by 3Q22; 2Q22 rents rose 2.7% QoQ</li><li><a href="https://www.smartkarma.com/entities/straits-trading-co-ltd" target="_blank" data-smartkarma-citation="entities:15745" rel="noopener">Straits Trading (STRTR SP)</a> unit acquires office/industrial buildings and land in UK for GBP130m</li></ul>

EC World REIT (ECWREIT SP) extends onshore loan facilities to Apr23; Receiving same terms as offshore facilitiesCBD Grade A office rents may surpass pre-pandemic peak by 3Q22; 2Q22 rents rose 2.7% QoQStraits Trading (STRTR SP) unit acquires office/industrial buildings and land in UK for GBP130m

ASEAN Builder's Scoop (30Jun22) - ECWREIT Extends Onshore Loan Facilities

<ul><li><a href="https://www.smartkarma.com/entities/ec-world-reit" target="_blank" data-smartkarma-citation="entities:22842" rel="noopener">EC World Reit (ECWREIT SP)</a> exploring potential divestment of Beigang Logistics Stage 1 and Chongxian Port Logistics</li><li>Resident buys entire floor of Suntec City Tower 2 for S$38.8m</li><li>Elizabeth Towers on Orchard Road relaunched for collective sale at S$630m</li></ul>

EC World Reit (ECWREIT SP) exploring potential divestment of Beigang Logistics Stage 1 and Chongxian Port LogisticsResident buys entire floor of Suntec City Tower 2 for S$38.8mElizabeth Towers on Orchard Road relaunched for collective sale at S$630m

ASEAN Builder's Scoop (14Jun22) - ECWREIT Exploring Asset Divestments

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)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

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.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

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 <div class='content-caption'>REIT Watch 6 Jun</div>
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Major cities in China have started re-opening and easing measures as the number of infections across China dropped.

The city of Shanghai finally re-opened on Jun 1 while some districts of Beijing are allowed to return to work.

Businesses are hopeful that the easing of measures will be a step towards gradual normalisation and have a positive impact on operations.

There are 5 S-Reits and property trusts with pure exposure to China assets.

Sasseur Reit, BHG Retail Reit and Dasin Retail Trust, which is a property trust, are retail Reits while EC World Reit  is an industrial Reit and CapitaLand China Trust is a diversified Reit.

CapitaLand China Trust (CLCT) reported 24 per cent year-on-year growth in gross revenue for Q1 2022, which in turn contributed to the 30.4 per cent growth in net property income (NPI).

CLCT noted that, for its retail portfolio, January to February shopper traffic and sales increased year on year until the recent Covid-19 wave in March.

All business parks remained open during the quarter and operations were not impacted.

However, in line with Shanghai lockdown measures, activities at the Shanghai Fengxian and Kunshan Bacheng Logistics Parks have paused.

The trust expects its logistics portfolio to be largely resilient.

Sasseur Reit reported distributable income of S$24.7 million, a 4.7 per cent increase year on year but 2.4 per cent drop quarter on quarter.

Its Q1 2022 outlet sales of 1,096.2 million yuan was 3.6 per cent lower year on year as a result of weaker buying sentiments and shopper traffic after the latest wave of Covid-19.

However, the Reit noted that there were no known outbreaks of Covid-19 in the cities where its 4 outlets are located.

EC World Reit (ECW) reported a 7.4 per cent year-on-year growth in NPI for Q1 FY2022.

However, distribution to unitholders dipped 9.4 per cent, mainly impacted by withholding tax expense incurred for repatriation of funds and provision for pre-termination compensation to a third-party tenant at Fu Zhuo Industrial as a result of compulsory expropriation.

The Reit noted that even though recent Covid-19 lockdowns in China caused bottlenecks in global supply chains, ECW’s portfolio of properties has not been materially impacted by the recent lockdowns.

BHG Retail Reit has 6 properties across 5 cities in China - Xining, Chengdu, Hefei, Dalian and Beijing.

Notwithstanding the near-term uncertainties and headwinds from Covid-19, the Reit noted that it remains focused to proactively manage and enhance existing assets, as well as to pursue acquisition opportunities.

As at Mar 31, 2022, close to 80 per cent of the Reit’s net lettable area is leased to tenants in experiential trade sectors.

Dasin Retail Trust announced in March 2022 that the trust had entered into a non-binding memorandum of understanding (MOU) to explore the sale of two assets - Shiqi Metro Mall and Xiaolan Metro Mall.

While the new waves of Covid-19 cases and the country’s pandemic prevention and control policies have moderated the pace of recovery of consumer consumption, the trust noted that it will continue to look into ways to realise organic growth, through improving tenant mix, introducing trending brands, or undertaking asset enhancement initiatives (AEIs).

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/s-reits-with-china-assets-focus-on-growth-despite-lockdowns">read </a>the original version
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    REIT Watch 6 Jun


Major cities in China have started re-opening and easing measures as the number of infections across China dropped.

The city of Shanghai finally re-opened on Jun 1 while some districts of Beijing are allowed to return to work.

Businesses are hopeful that the easing of measures will be a step towards gradual normalisation and have a positive impact on operations.

There are 5 S-Reits and property trusts with pure exposure to China assets.

Sasseur Reit, BHG Retail Reit and Dasin Retail Trust, which is a property trust, are retail Reits while EC World Reit  is an industrial Reit and CapitaLand China Trust is a diversified Reit.

CapitaLand China Trust (CLCT) reported 24 per cent year-on-year growth in gross revenue for Q1 2022, which in turn contributed to the 30.4 per cent growth in net property income (NPI).

CLCT noted that, for its retail portfolio, January to February shopper traffic and sales increased year on year until the recent Covid-19 wave in March.

All business parks remained open during the quarter and operations were not impacted.

However, in line with Shanghai lockdown measures, activities at the Shanghai Fengxian and Kunshan Bacheng Logistics Parks have paused.

The trust expects its logistics portfolio to be largely resilient.

Sasseur Reit reported distributable income of S$24.7 million, a 4.7 per cent increase year on year but 2.4 per cent drop quarter on quarter.

Its Q1 2022 outlet sales of 1,096.2 million yuan was 3.6 per cent lower year on year as a result of weaker buying sentiments and shopper traffic after the latest wave of Covid-19.

However, the Reit noted that there were no known outbreaks of Covid-19 in the cities where its 4 outlets are located.

EC World Reit (ECW) reported a 7.4 per cent year-on-year growth in NPI for Q1 FY2022.

However, distribution to unitholders dipped 9.4 per cent, mainly impacted by withholding tax expense incurred for repatriation of funds and provision for pre-termination compensation to a third-party tenant at Fu Zhuo Industrial as a result of compulsory expropriation.

The Reit noted that even though recent Covid-19 lockdowns in China caused bottlenecks in global supply chains, ECW’s portfolio of properties has not been materially impacted by the recent lockdowns.

BHG Retail Reit has 6 properties across 5 cities in China - Xining, Chengdu, Hefei, Dalian and Beijing.

Notwithstanding the near-term uncertainties and headwinds from Covid-19, the Reit noted that it remains focused to proactively manage and enhance existing assets, as well as to pursue acquisition opportunities.

As at Mar 31, 2022, close to 80 per cent of the Reit’s net lettable area is leased to tenants in experiential trade sectors.

Dasin Retail Trust announced in March 2022 that the trust had entered into a non-binding memorandum of understanding (MOU) to explore the sale of two assets - Shiqi Metro Mall and Xiaolan Metro Mall.

While the new waves of Covid-19 cases and the country’s pandemic prevention and control policies have moderated the pace of recovery of consumer consumption, the trust noted that it will continue to look into ways to realise organic growth, through improving tenant mix, introducing trending brands, or undertaking asset enhancement initiatives (AEIs).

REIT Watch is a weekly column on The Business Times, read the original version



REIT Watch - S-Reits with China assets focus on growth despite lockdowns

<ul><li><a href="https://www.smartkarma.com/entities/ec-world-reit" target="_blank" data-smartkarma-citation="entities:22842" rel="noopener">EC World Reit (ECWREIT SP)</a> extends offshore loan facilities; Ripe for privatization</li><li>Ascott acquires first lyf-branded Co-living property in Sydney</li><li><a href="https://www.smartkarma.com/entities/sph-reit" target="_blank" data-smartkarma-citation="entities:5994" rel="noopener">SPH REIT (SPHREIT SP)</a> chain offer has become unconditional</li></ul>

EC World Reit (ECWREIT SP) extends offshore loan facilities; Ripe for privatizationAscott acquires first lyf-branded Co-living property in SydneySPH REIT (SPHREIT SP) chain offer has become unconditional

ASEAN Builder's Scoop (2Jun22) - ECWREIT Ripe for Privatisation

Singapore

EC World Real Estate Investment Trust (EC World REIT) is the first Chinese specialised logistics and e-commerce logistics REIT listed on SGX-ST. 

It has a portfolio of quality properties located predominantly in one of the largest e-commerce clusters in the Yangtze River Delta which offers investors unique exposure to the logistics and e-commerce sectors in Hangzhou and Wuhan, China.
  
EC World REIT’s investment strategy is to invest principally, directly or indirectly, in a diversified portfolio of income-producing real estate which is used primarily for e-commerce, supply-chain management and logistics purposes, as well as real estate-related assets, with an initial geographical focus on the PRC. 

EC World REIT is listed in several indices. These include the FTSE ASEAN All-Share Index, FTSE ST All-Share Index, FTSE ST China Index and FTSE ST Singapore Shariah Index. For more information, please visit: http://www.ecwreit.com/ 

EC World REIT is managed by EC World Asset Management Pte. Ltd., which is an indirect wholly-owned subsidiary of the Sponsor – Forchn Holdings Group Co., Ltd.

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EC World Reit (ECWREIT SP)

ASEAN Builder's Scoop (7Jul22) - CERT Divests Finland Office, Buys UK Logistics

ECWREIT CEO bought more units; Cape Royale at Sentosa sold 50% on launch day; People's Park Centre enbloc for S$1.8bn; IREIT CFO steps down

SCCM Asia Research

ASEAN Builder's Scoop (30Jun22) - ECWREIT Extends Onshore Loan Facilities

CBD Grade A rents rose 2.7% QoQ in 2Q22; STRTR unit buys UK office/industrial props; Phils 2Q22 office demand more than doubles; BHI ventures into...

SCCM Asia Research

ASEAN Builder's Scoop (14Jun22) - ECWREIT Exploring Asset Divestments

Suntec City T2 record psf prices; Elizabeth Tower enbloc for S$630m; Phils FDI inflows shrank to 10mo low; GSH's Coral Bay in Sabah under dispute

SCCM Asia Research

REIT Watch - S-Reits with China assets focus on growth despite lockdowns

Major cities in China have started re-opening and easing measures as the number of infections across China dropped. The city...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (2Jun22) - ECWREIT Ripe for Privatisation

Ascott acquires first Lyf in Sydney; SPHREIT chain offer becomes unconditional; VREIT Phils's first mall-oriented REIT; ALLHC buys Batangas land...

SCCM Asia Research

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