Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Lendlease Global Commercial REIT / Equity Capital Markets

<ul>
<li>Lendlease REIT is looking to raise up to US$427m via a private placement and a preferential offering.</li>
<li>The deal is very well flagged as the acquisition was announced in Feb 2022 and the EGM approval for the same was received earlier this month.</li>
<li>In this note, we will run the deal through our ECM framework and talk about the recent updates.</li>
</ul>


Lendlease REIT is looking to raise up to US$427m via a private placement and a preferential offering.
The deal is very well flagged as the acquisition was announced in Feb 2022 and the EGM approval for the same was received earlier this month.
In this note, we will run the deal through our ECM framework and talk about the recent updates.


Lendlease Global REIT Placement - Very Well Flagged but Still Quite a Large One to Digest

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

<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2022-03/Capture_16.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">Insti investors continue to net buy sreits</div>

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,<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.


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

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> 2H21 DPU +10.9% YoY; All eyes remain on the hefty 2022 refinancing burden</li><li><a href="https://www.smartkarma.com/entities/bhg-retail-reit" target="_blank" data-smartkarma-citation="entities:21021" rel="noopener">BHG Retail REIT (BHGREIT SP)</a> 2H21 DPU -0.9% YoY; Steady as she goes with occupancy rates inching higher</li><li><a href="https://www.smartkarma.com/entities/ireit-global" target="_blank" data-smartkarma-citation="entities:10596" rel="noopener">IREIT Global (IREIT SP)</a> 2H21 DPU +7.9% YoY; Continued to trade ~25% below book value despite an attractive 7+% yield</li></ul>

Dasin Retail Trust (DASIN SP) 2H21 DPU +10.9% YoY; All eyes remain on the hefty 2022 refinancing burdenBHG Retail REIT (BHGREIT SP) 2H21 DPU -0.9% YoY; Steady as she goes with occupancy rates inching higherIREIT Global (IREIT SP) 2H21 DPU +7.9% YoY; Continued to trade ~25% below book value despite an attractive 7+% yield

ASEAN Builder's Scoop 28Feb22 - DASIN All Eyes on Mar22 Loan Refinancing

<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> 2H21 DPU -4.2% YoY; Weakness in MG and LP offset by office and hotel recovery</li><li><a href="https://www.smartkarma.com/entities/prime-us-reit" target="_blank" data-smartkarma-citation="entities:28144" rel="noopener">Prime US REIT (PRIME SP)</a> 2H21 DPU +0.9% YoY; Strong reversions continue but occupancy remains a struggle</li><li>Frasers Hospitality forays into Cambodia, to launch 3 more properties</li></ul>

OUE Commercial REIT (OUECT SP) 2H21 DPU -4.2% YoY; Weakness in MG and LP offset by office and hotel recoveryPrime US REIT (PRIME SP) 2H21 DPU +0.9% YoY; Strong reversions continue but occupancy remains a struggleFrasers Hospitality forays into Cambodia, to launch 3 more properties

ASEAN Builder's Scoop (17Feb22) - OUECT Persistent Weakness in MG and LP

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-02/Capture_0.PNG' alt='Singapore office assets' />
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 <div class='content-caption'>Singapore office assets</div>
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According to data from the Urban Redevelopment Authority (URA), office rental prices in Q4 2021 have improved by 0.9 per cent quarter on quarter. The improvement in Q4 2021 comes after a decline of 3.5 per cent in the previous quarter. On a year-on-year basis, office rents have improved by 1.9 per cent in 2021, after dipping over 8.5 per cent in 2020.

Office vacancy rates have also shown a slight improvement in the latest Q4 2021 at 12.8 per cent. 
Listed in Singapore are five S-REITs with significant exposure to local office assets: CapitaLand Integrated Commercial Trust (CICT), Mapletree Commercial Trust (MCT), Suntec REIT, Keppel REIT, and OUE Commercial REIT. Three have reported full year 2021 results. 
CICT is a diversified S-Reit which has 36.8 per cent of its portfolio value in office-related assets with a majority located in Singapore. It reported a full-year 2021 gross revenue exceeding S$1.3 billion and net property income of over S$951 million from its enlarged portfolio since the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust in 2020.

CICT's office portfolio has seen average office rentals improve 2.6 per cent quarter on quarter to S$10.33 psf on Dec 31, 2021 and improving from S$10.27 psf on Dec 31, 2020. The Reit's office occupancy rate stands at 91.5 per cent and it notes that the gap between committed rents and expired rents is expected to narrow as office market rentals look to improve.

CICT's major new leases and renewals completed in Q4 2021 and January 2022 included GIC, Mabanaft and Satellite (International) Singapore, and the Reit aims to continue to backfill vacancy in the portfolio as well as manage leases expiring in 2022. 
Suntec Reit has 82.2 per cent of its diversified portfolio in the office sector. It reported a full year 2021 gross revenue of over S$358 million, increasing 13.5 per cent year on year, and a net property income of over S$254 million, expanding 27.4 per cent year on year.

Suntec Reit's 3 Singapore office properties - Suntec City Office, One Raffles Quay, and MBFC Towers 1 and 2 - have an overall occupancy rate of 97.5 per cent, improving from 97.0 per cent the year before and exceeding that of Singapore's Core CBD occupancy rate of 93.3 per cent. Rent reversions grew 3.2 per cent in 2021 and its top 3 new tenants in 2021 include sectors from technology, media and telecommunications, banking, insurance and financial services, and manufacturing &amp; distribution.

Suntec Reit expects the outlook for its Singapore office portfolio to improve in tandem with economic recovery and income contribution to increase driven by cumulative positive rent reversions achieved in the past 14 quarters. However, the Reit notes that high expiry rents may result in weak positive rent reversion.

Keppel Reit is a pure-play office S-Reit with 78.4 per cent of its portfolio in Singapore office assets. It declared full year net property income of over S$172 million, increasing 27.3 per cent year on year and driven by acquisitions of Keppel Bay Tower in Singapore and Blue &amp; William in North Sydney and divestment of 275 George Street in Brisbane.

Keppel Reit has an occupancy rate of 95.4 per cent and its tenant retention rate was 62 per cent for FY2021.

OUE Commercial Reit is due to report second half and financial year ended Dec 31, 2021 after trading hours on Feb 16, 2022.  REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/real-estate/keppel-groups-s-reits-average-36-dpu-growth-for-fy2021"> </a><a href="https://www.businesstimes.com.sg/companies-markets/s-reits-with-singapore-office-assets-sanguine-on-rental-outlook">read </a>the original version.
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    Singapore office assets


According to data from the Urban Redevelopment Authority (URA), office rental prices in Q4 2021 have improved by 0.9 per cent quarter on quarter. The improvement in Q4 2021 comes after a decline of 3.5 per cent in the previous quarter. On a year-on-year basis, office rents have improved by 1.9 per cent in 2021, after dipping over 8.5 per cent in 2020.

Office vacancy rates have also shown a slight improvement in the latest Q4 2021 at 12.8 per cent.  
Listed in Singapore are five S-REITs with significant exposure to local office assets: CapitaLand Integrated Commercial Trust (CICT), Mapletree Commercial Trust (MCT), Suntec REIT, Keppel REIT, and OUE Commercial REIT. Three have reported full year 2021 results.  
CICT is a diversified S-Reit which has 36.8 per cent of its portfolio value in office-related assets with a majority located in Singapore. It reported a full-year 2021 gross revenue exceeding S$1.3 billion and net property income of over S$951 million from its enlarged portfolio since the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust in 2020.

CICT's office portfolio has seen average office rentals improve 2.6 per cent quarter on quarter to S$10.33 psf on Dec 31, 2021 and improving from S$10.27 psf on Dec 31, 2020. The Reit's office occupancy rate stands at 91.5 per cent and it notes that the gap between committed rents and expired rents is expected to narrow as office market rentals look to improve.

CICT's major new leases and renewals completed in Q4 2021 and January 2022 included GIC, Mabanaft and Satellite (International) Singapore, and the Reit aims to continue to backfill vacancy in the portfolio as well as manage leases expiring in 2022.  
Suntec Reit has 82.2 per cent of its diversified portfolio in the office sector. It reported a full year 2021 gross revenue of over S$358 million, increasing 13.5 per cent year on year, and a net property income of over S$254 million, expanding 27.4 per cent year on year.

Suntec Reit's 3 Singapore office properties - Suntec City Office, One Raffles Quay, and MBFC Towers 1 and 2 - have an overall occupancy rate of 97.5 per cent, improving from 97.0 per cent the year before and exceeding that of Singapore's Core CBD occupancy rate of 93.3 per cent. Rent reversions grew 3.2 per cent in 2021 and its top 3 new tenants in 2021 include sectors from technology, media and telecommunications, banking, insurance and financial services, and manufacturing &amp; distribution.

Suntec Reit expects the outlook for its Singapore office portfolio to improve in tandem with economic recovery and income contribution to increase driven by cumulative positive rent reversions achieved in the past 14 quarters. However, the Reit notes that high expiry rents may result in weak positive rent reversion.

Keppel Reit is a pure-play office S-Reit with 78.4 per cent of its portfolio in Singapore office assets. It declared full year net property income of over S$172 million, increasing 27.3 per cent year on year and driven by acquisitions of Keppel Bay Tower in Singapore and Blue &amp; William in North Sydney and divestment of 275 George Street in Brisbane.

Keppel Reit has an occupancy rate of 95.4 per cent and its tenant retention rate was 62 per cent for FY2021.

OUE Commercial Reit is due to report second half and financial year ended Dec 31, 2021 after trading hours on Feb 16, 2022.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - S-Reits with Singapore office assets sanguine on rental outlook

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.

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OUE REIT (OUECT SP)

Lendlease Global REIT Placement - Very Well Flagged but Still Quite a Large One to Digest

Lendlease REIT is looking to raise up to US$427m via a private placement and a preferential offering. The deal is very well flagged.

Sumeet Singh

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)

ASEAN Builder's Scoop 28Feb22 - DASIN All Eyes on Mar22 Loan Refinancing

BHGREIT steady as she goes; IREIT trading ~25% below book; AEW sells 55MS for S$3,450psf; CLD signs S$1.3bn Vietnam MOU; ELITE embarks on new AEI

SCCM Asia Research

ASEAN Builder's Scoop (17Feb22) - OUECT Persistent Weakness in MG and LP

OUECT persistent weakness in MG and LP; PRIME strong reversions continue; Condo/HDB rents continued rising in Jan22; ALCO introducing FY23E...

SCCM Asia Research

REIT Watch - S-Reits with Singapore office assets sanguine on rental outlook

According to data from the Urban Redevelopment Authority (URA), office rental prices in Q4 2021 have improved by 0.9 per cent...

Singapore Exchange Ltd (SGX)

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