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/dasin-retail-trust" target="_blank" data-smartkarma-citation="entities:23743" rel="noopener">Dasin Retail Trust (DASIN SP)</a> extends its loan facility due 19Sep22</li><li><a href="https://www.smartkarma.com/entities/frasers-logistics-commercial-trust" target="_blank" data-smartkarma-citation="entities:22748" rel="noopener">Frasers Logistics &amp; Commercial Trust (FLT SP)</a> establishes S$1bn Euro-commercial paper program</li><li>Oxley Garden collective sale relaunched at the same minimum price of S$200m</li></ul>

Dasin Retail Trust (DASIN SP) extends its loan facility due 19Sep22Frasers Logistics &amp; Commercial Trust (FLT SP) establishes S$1bn Euro-commercial paper programOxley Garden collective sale relaunched at the same minimum price of S$200m

ASEAN Builder's Scoop (20Sep22) - DASIN Extends Loan Facility to End-Sep22

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

<ul><li>On average, S-Reits have maintained an average gearing ratio of 36.8 per cent, based on latest company filings which were extracted in mid-August 2022.</li><li>The 5 S-Reits with the lowest gearing ratios reported are Digital Core Reit, Sasseur Reit, Frasers Logistics & Commercial Trust, SPH Reit, and IReit Global.</li><li>Gearing ratio, also known as aggregated leverage, is the ratio of a Reit’s total debt to its total assets.</li></ul>

On average, S-Reits have maintained an average gearing ratio of 36.8 per cent, based on latest company filings which were extracted in mid-August 2022.The 5 S-Reits with the lowest gearing ratios reported are Digital Core Reit, Sasseur Reit, Frasers Logistics & Commercial Trust, SPH Reit, and IReit Global.Gearing ratio, also known as aggregated leverage, is the ratio of a Reit’s total debt to its total assets.

REIT Watch - Five S-Reits with the lowest gearing ratios

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?


Frasers Logistics & Commercial Trust / Equity Bottom-Up

<ul><li>GLOBAL stock markets have been led by technology, consumer cyclicals and Reit sectors in Q3 2022-to-date.</li><li>These 3 sub-segments averaged 12 per cent, 8.2 per cent and 4 per cent respectively in total returns in the Q3 2022-to-date.</li><li>The top 5 performing trusts in Q3 2022-to-date were Digital Core Reit, Daiwa House Logistics Trust, EC World Reit, Frasers Logistics & Commercial Trust and Ascendas India Trust.</li></ul>

GLOBAL stock markets have been led by technology, consumer cyclicals and Reit sectors in Q3 2022-to-date.These 3 sub-segments averaged 12 per cent, 8.2 per cent and 4 per cent respectively in total returns in the Q3 2022-to-date.The top 5 performing trusts in Q3 2022-to-date were Digital Core Reit, Daiwa House Logistics Trust, EC World Reit, Frasers Logistics & Commercial Trust and Ascendas India Trust.

REIT Watch - Data centre, industrial as well as diversified S-Reits leading Q3 2022 performance

<ul><li><a href="https://www.smartkarma.com/entities/frasers-logistics-commercial-trust" target="_blank" data-smartkarma-citation="entities:22748" rel="noopener">Frasers Logistics &amp; Commercial Trust (FLT SP)</a> 3Q22 Business Updates – Robust reversions and steady occupancy</li><li><a href="https://www.smartkarma.com/entities/elite-commercial-reit" target="_blank" data-smartkarma-citation="entities:28807" rel="noopener">Elite Commercial REIT (ELITE SP)</a> 1H22 DPU -2.7% YoY; Higher mid-year portfolio valuation despite declining occupancy</li><li><a href="https://www.smartkarma.com/entities/ascendas-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:39" rel="noopener">Ascendas Real Estate Investment Trust (AREIT SP)</a> to acquire Philips APAC Center in Singapore for S$104.8m; DPU accretive by +0.3%</li></ul>

Frasers Logistics &amp; Commercial Trust (FLT SP) 3Q22 Business Updates – Robust reversions and steady occupancyElite Commercial REIT (ELITE SP) 1H22 DPU -2.7% YoY; Higher mid-year portfolio valuation despite declining occupancyAscendas Real Estate Investment Trust (AREIT SP) to acquire Philips APAC Center in Singapore for S$104.8m; DPU accretive by +0.3%

ASEAN Builder's Scoop (5Aug22) - FLT Robust Reversions +ve Surprise

Singapore

FLT offers investors an opportunity to invest in logistics and industrial real estate assets strategically located within major logistics and industrial markets of Australia, Germany and the Netherlands.

Frasers Logistics & Commercial Trust (FLT SP)

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Frasers Logistics & Commercial Trust (FLT SP)

ASEAN Builder's Scoop (20Sep22) - DASIN Extends Loan Facility to End-Sep22

FLT establishes S$1bn Euro-comm paper program; POGO exit impact, BPO granted full WFH; CLI booked PHP13.5bn reservation sales this year

SCCM Asia Research

REIT Watch - Five S-Reits with the lowest gearing ratios

On average, S-Reits have maintained an average gearing ratio of 36.8 per cent, based on latest company filings which were extracted in mid-August...

Singapore Exchange Ltd (SGX)

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

REIT Watch - Data centre, industrial as well as diversified S-Reits leading Q3 2022 performance

GLOBAL stock markets have been led by technology, consumer cyclicals and Reit sectors in Q3 2022-to-date. These 3 sub-segments averaged 12 per...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (5Aug22) - FLT Robust Reversions +ve Surprise

ELITE higher mid-year portfolio valuation; AREIT buys Philips APAC Centre at +0.3% DPU accretion; BSDE 1H22 mktg sales reached 61% FY target; FLI...

SCCM Asia Research

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