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

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;</strong>SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<h2>PropNex Limited</h2>
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<h3>Riding strong purchase momentum</h3>
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<p>1HFY21 revenue made up 76.2%, and net profit 82.4% of our FY21E forecasts, with strength above expectations, riding the strong buying momentum that lasted from FY20. Drivers of growth were mainly higher transaction volume, attractive mortgage rates, Singapore’s safe haven status and a bigger upgrader market due to attractive HDB resale prices.</p>
<p>PropNex reported revenue doubling from S$240.4m to S$481.1m in 1HFY21, with all segments seeing growth. Private resale took lead with 2.5x yoy jump to S$108.7m from S$44.2m, and project marketing clocking highest value jump to S$225.1m from S$109.4m (2.1x). PATMI increased 2.1x to S$31.3m. Total 1H dividend payout was 5.50 cents per share or 64.9% of 1H PATMI.</p>
<p>Transaction volume, property price run-up to continue in the near-term. We expect home prices to remain resilient with higher developer costs that will translate to higher property prices, more HDB upgraders and long waiting times for BTO flats. Property investments by high-net-worth individuals due to Singapore’s “safe-haven” status will also contribute to the increase. The low inventory of unsold private residential units in the market is, however, a double-edged sword.</p>
<p><strong>Adjusted our FY21E estimates; introduce FY22E forecasts.</strong> With its strong set of 1H results, we raised our FY21E revenue estimates by 28.8% to S$813.7m, and PATMI by 40.8% to S$53.6m. In addition, we introduce our FY22E forecasts, which translates to a 15.9% decline in topline to S$684.3m, and 19.5% yoy decline on PATMI to S$43.1m.</p>
<p><strong>Maintain HOLD rating, at a higher fair value of S$2.00 (from S$1.27)</strong>. Our target price is based on a P/E multiple of 13.8x, which is based on FY21E P/E +1SD above its mean. We expect strong 1H momentum to continue into 2H. However, we think the market has priced in PropNex’s strengths: i) market leadership position; ii) continued rise in property transactions and prices in 2H; and iii) strong cash holdings positioned it well to capture more opportunities. We are cautious about i) possible property cooling measures; ii) strong growth rate might not sustain; and iii) dwindling supply in the pipeline and fewer new launches expected pointing to lower transaction volume next year. Our target price implies a 4.2% upside to the last traded price.</p>
<p><strong>Key Risks</strong>: Possible property cooling measures, competition from other players, dwindling home supply</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




PropNex Limited




Riding strong purchase momentum




1HFY21 revenue made up 76.2%, and net profit 82.4% of our FY21E forecasts, with strength above expectations, riding the strong buying momentum that lasted from FY20. Drivers of growth were mainly higher transaction volume, attractive mortgage rates, Singapore’s safe haven status and a bigger upgrader market due to attractive HDB resale prices.
PropNex reported revenue doubling from S$240.4m to S$481.1m in 1HFY21, with all segments seeing growth. Private resale took lead with 2.5x yoy jump to S$108.7m from S$44.2m, and project marketing clocking highest value jump to S$225.1m from S$109.4m (2.1x). PATMI increased 2.1x to S$31.3m. Total 1H dividend payout was 5.50 cents per share or 64.9% of 1H PATMI.
Transaction volume, property price run-up to continue in the near-term. We expect home prices to remain resilient with higher developer costs that will translate to higher property prices, more HDB upgraders and long waiting times for BTO flats. Property investments by high-net-worth individuals due to Singapore’s “safe-haven” status will also contribute to the increase. The low inventory of unsold private residential units in the market is, however, a double-edged sword.
Adjusted our FY21E estimates; introduce FY22E forecasts. With its strong set of 1H results, we raised our FY21E revenue estimates by 28.8% to S$813.7m, and PATMI by 40.8% to S$53.6m. In addition, we introduce our FY22E forecasts, which translates to a 15.9% decline in topline to S$684.3m, and 19.5% yoy decline on PATMI to S$43.1m.
Maintain HOLD rating, at a higher fair value of S$2.00 (from S$1.27). Our target price is based on a P/E multiple of 13.8x, which is based on FY21E P/E +1SD above its mean. We expect strong 1H momentum to continue into 2H. However, we think the market has priced in PropNex’s strengths: i) market leadership position; ii) continued rise in property transactions and prices in 2H; and iii) strong cash holdings positioned it well to capture more opportunities. We are cautious about i) possible property cooling measures; ii) strong growth rate might not sustain; and iii) dwindling supply in the pipeline and fewer new launches expected pointing to lower transaction volume next year. Our target price implies a 4.2% upside to the last traded price.
Key Risks: Possible property cooling measures, competition from other players, dwindling home supply













(Non-SGX Report) PropNex Limited: Riding Strong Purchase Momentum

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

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55" rel="noopener">Capitaland (CAPL SP)</a> shareholders vote in favour of restructuring plans</h3><ul><li>CAPL shareholders have voted in favour to privatise CAPL’s development arm and to list its fund-management and property-investment business. From Sep21, CAPL will operate as two distinct entities, the new, listed unit CapitaLand Investments (CLI) and the privatised CapitaLand Development. CLI shares are expected to list on 16Sep and 3Sept is expected to be the last day of trade for the shares of CapitaLand Limited</li><li>Over 3,400 shareholders voted by proxy at a virtual extraordinary general meeting and a scheme meeting, among which 99.6% backed the resolution to approve the capital reduction and distribution in specie. The scheme of arrangement received approval from 97.6% of the number of shareholders holding approximately 99.8% in value of the total number of shares voted</li><li>CLI is expected to become a leading listed real estate investment manager globally, with pro forma total real estate AUM of ~S$115bn as at 31Dec20. On a pro forma basis, it had ~S$78bn of real estate funds under management held via its managed listed funds and unlisted funds across the Asia-Pacific, Europe and the USA. CLI aims to achieve S$100bn in funds under management by 2024 and grow its lodging business to 160,000 units under management by 2023.</li></ul>

SingaporeCapitaland (CAPL SP) shareholders vote in favour of restructuring plansCAPL shareholders have voted in favour to privatise CAPL’s development arm and to list its fund-management and property-investment business. From Sep21, CAPL will operate as two distinct entities, the new, listed unit CapitaLand Investments (CLI) and the privatised CapitaLand Development. CLI shares are expected to list on 16Sep and 3Sept is expected to be the last day of trade for the shares of CapitaLand LimitedOver 3,400 shareholders voted by proxy at a virtual extraordinary general meeting and a scheme meeting, among which 99.6% backed the resolution to approve the capital reduction and distribution in specie. The scheme of arrangement received approval from 97.6% of the number of shareholders holding approximately 99.8% in value of the total number of shares votedCLI is expected to become a leading listed real estate investment manager globally, with pro forma total real estate AUM of ~S$115bn as at 31Dec20. On a pro forma basis, it had ~S$78bn of real estate funds under management held via its managed listed funds and unlisted funds across the Asia-Pacific, Europe and the USA. CLI aims to achieve S$100bn in funds under management by 2024 and grow its lodging business to 160,000 units under management by 2023.

ASEAN Builder's Scoop (11Aug21) - CAPL Gets Nod for Restructuring Plan

<h2>Singapore</h2><h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3><table class="table table-striped"><tbody><tr><td style="width: 141.25pt;"><p> </p></td><td style="width: 141.2pt;"><p>PRIME (US$)</p></td><td style="width: 141.2pt;"><p>KORE (US$)</p></td><td style="width: 141.2pt;"><p>MUST (US$)</p></td></tr><tr><td style="width: 141.25pt;"><p>Period</p></td><td style="width: 141.2pt;"><p>1Q21</p></td><td style="width: 141.2pt;"><p>1Q21</p></td><td style="width: 141.2pt;"><p>1Q21</p></td></tr><tr><td style="width: 141.25pt;"><p>Gross Revenue (S$ m)</p></td><td style="width: 141.2pt;"><p>35.9 (+2.5% YoY)</p></td><td style="width: 141.2pt;"><p>34.6 (-2.1% YoY)</p></td><td style="width: 141.2pt;"><p>NA</p></td></tr><tr><td style="width: 141.25pt;"><p>NPI (S$ m)</p></td><td style="width: 141.2pt;"><p>23.0 (-2.0% YoY)</p></td><td style="width: 141.2pt;"><p>20.4 (-2.8% YoY)</p></td><td style="width: 141.2pt;"><p>NA</p></td></tr><tr><td style="width: 141.25pt;"><p>DPU (S$ c)</p></td><td style="width: 141.2pt;"><p>Not Disclosed</p></td><td style="width: 141.2pt;"><p>Not Disclosed</p></td><td style="width: 141.2pt;"><p>NA</p></td></tr><tr><td style="width: 141.25pt;"><p>NAV per Unit (S$)</p></td><td style="width: 141.2pt;"><p>Not Disclosed</p></td><td style="width: 141.2pt;"><p>Not Disclosed</p></td><td style="width: 141.2pt;"><p>0.730</p></td></tr><tr><td style="width: 141.25pt;"><p>P/B (x)</p></td><td style="width: 141.2pt;"><p>0.99(Based on 4Q20 NAV)</p></td><td style="width: 141.2pt;"><p>0.90 (Based on 4Q20 NAV)</p></td><td style="width: 141.2pt;"><p>1.030 (Based on 4Q20 NAV)</p></td></tr><tr><td style="width: 141.25pt;"><p>Occupancy (%)</p></td><td style="width: 141.2pt;"><p>91.7</p></td><td style="width: 141.2pt;"><p>91.6</p></td><td style="width: 141.2pt;"><p>92.0</p></td></tr><tr><td style="width: 141.25pt;"><p>Reversion (%)</p></td><td style="width: 141.2pt;"><p>8.5</p></td><td style="width: 141.2pt;"><p>5.7</p></td><td style="width: 141.2pt;"><p>2.1</p></td></tr><tr><td style="width: 141.25pt;"><p>Gearing (%)</p></td><td style="width: 141.2pt;"><p>33.6</p></td><td style="width: 141.2pt;"><p>37.5</p></td><td style="width: 141.2pt;"><p>41.3</p></td></tr><tr><td style="width: 141.25pt;"><p>Cost of Debt (%)</p></td><td style="width: 141.2pt;"><p>2.8</p></td><td style="width: 141.2pt;"><p>2.82</p></td><td style="width: 141.2pt;"><p>3.18</p></td></tr><tr><td style="width: 141.25pt;"><p>1 Yr Fwd Yield (%)</p></td><td style="width: 141.2pt;"><p>8.24</p></td><td style="width: 141.2pt;"><p>8.3</p></td><td style="width: 141.2pt;"><p>8.00</p></td></tr><tr><td style="width: 141.25pt;"><p>Debt Hedged (%)</p></td><td style="width: 141.2pt;"><p>90.0</p></td><td style="width: 141.2pt;"><p>84.7</p></td><td style="width: 141.2pt;"><p>NA</p></td></tr><tr><td style="width: 141.25pt;"><p>Target Price</p></td><td style="width: 141.2pt;"><p>NA</p></td><td style="width: 141.2pt;"><p>NA</p></td><td style="width: 141.2pt;"><p>NA</p></td></tr><tr><td style="width: 141.25pt;"><p>Rating</p></td><td style="width: 141.2pt;"><p>NA</p></td><td style="width: 141.2pt;"><p>NA</p></td><td style="width: 141.2pt;"><p>NA</p></td></tr></tbody></table><h3><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> 1Q21 Business Update – Robust operations metrics; Trading at an attractive 8+% USD yield  </h3><ul><li>1Q21 revenue and NPI came in +2.5% YoY and -2.0% YoY, respectively, to US$35.9m (25.2% BB est) and US$23.5m (26.7% BB est). 1Q21 DI came in -1.2% YoY at US$17.6m, which benefitted from lower interest cost. 1Q21 DPU was undisclosed</li><li>Leasing momentum remained robust with a positive rental reversion of +8.5% in 1Q21 (vs +8.7% in 4Q20 and +8.9% in 3Q20). Focusing on long-term leases – 57,647sqft of long-term leases were executed in 1Q21 at a rental reversion of +9.5%. Below-market portfolio in place rents (by 6.5%) also provide a buffer for rental reversion potential</li><li>Overall portfolio committed occupancy fell to 91.7% in 1Q21 (vs. 92.4% in 4Q20 and 92.6% in 3Q20). PRIME has ~100% of cash rental income with built-in rental escalations averaging over +2% pa. Portfolio occupancy still well above Class-A office average of 84.3%. Rent collections remained robust at 99% with minimal rent concessions. Portfolio WALE stood at 4.3%</li><li>Portfolio gearing stands at 33.8% (vs. 33.5% in 4Q20 and 32.7% in 3Q20) with average cost of debt of 2.8% pa. (vs. 2.7% in 4Q20 and 2.7% in 3Q20) and 90.0% of debt hedged</li><li>PRIME currently trades at 8.24% FY21E yield and 0.99x P/B.</li></ul>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached) PRIME (US$)KORE (US$)MUST (US$)Period1Q211Q211Q21Gross Revenue (S$ m)35.9 (+2.5% YoY)34.6 (-2.1% YoY)NANPI (S$ m)23.0 (-2.0% YoY)20.4 (-2.8% YoY)NADPU (S$ c)Not DisclosedNot DisclosedNANAV per Unit (S$)Not DisclosedNot Disclosed0.730P/B (x)0.99(Based on 4Q20 NAV)0.90 (Based on 4Q20 NAV)1.030 (Based on 4Q20 NAV)Occupancy (%)91.791.692.0Reversion (%)8.55.72.1Gearing (%)33.637.541.3Cost of Debt (%)2.82.823.181 Yr Fwd Yield (%)8.248.38.00Debt Hedged (%)90.084.7NATarget PriceNANANARatingNANANAPrime US REIT (PRIME SP) 1Q21 Business Update – Robust operations metrics; Trading at an attractive 8+% USD yield  1Q21 revenue and NPI came in +2.5% YoY and -2.0% YoY, respectively, to US$35.9m (25.2% BB est) and US$23.5m (26.7% BB est). 1Q21 DI came in -1.2% YoY at US$17.6m, which benefitted from lower interest cost. 1Q21 DPU was undisclosedLeasing momentum remained robust with a positive rental reversion of +8.5% in 1Q21 (vs +8.7% in 4Q20 and +8.9% in 3Q20). Focusing on long-term leases – 57,647sqft of long-term leases were executed in 1Q21 at a rental reversion of +9.5%. Below-market portfolio in place rents (by 6.5%) also provide a buffer for rental reversion potentialOverall portfolio committed occupancy fell to 91.7% in 1Q21 (vs. 92.4% in 4Q20 and 92.6% in 3Q20). PRIME has ~100% of cash rental income with built-in rental escalations averaging over +2% pa. Portfolio occupancy still well above Class-A office average of 84.3%. Rent collections remained robust at 99% with minimal rent concessions. Portfolio WALE stood at 4.3%Portfolio gearing stands at 33.8% (vs. 33.5% in 4Q20 and 32.7% in 3Q20) with average cost of debt of 2.8% pa. (vs. 2.7% in 4Q20 and 2.7% in 3Q20) and 90.0% of debt hedgedPRIME currently trades at 8.24% FY21E yield and 0.99x P/B.

ASEAN Builder's Scoop (19May21) - PRIME robust operations metrics

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;</strong>SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<h2>PropNex Limited</h2>
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<h3>Asset-light business model showing resilience</h3>
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<p><strong>PropNex’s core business is in the provision of real estate agency services and project marketing services to its clients.</strong> Agency services relate to the sale and lease of public and private residential and commercial/industrial properties, and project marketing services involve marketing for new private residential development projects for third-party property developers. The Group also provides training services to real estate agents which serve as recurring income. In addition, PropNex is also building up their consultancy services business segment.</p>
<p><strong>Stronger sales and profit recorded in 1QFY21 with high demand</strong>. Revenue increased 63.3% yoy to S$220.6 million in 1QFY21, mainly from an increase in commission income from agency services of S$47.5m and project marketing services of S$38.0m. This was after reporting a 22.8% yoy increase in revenue to S$515.6 million in FY2020. Q1 revenue alone made up 42.8% of FY2020’s revenue. Profit almost doubled, surging 95.7% to S$14.8m. Drivers of growth were mainly higher transaction volume, attractive mortgage rates and increase in referral fee income (S$0.4m) and government grants (S$0.2m).</p>
<p><strong>Property price run-up likely to continue</strong>. Even with property cooling measures that may come into play, and the newly imposed Covid restriction measures, we expect home prices to remain resilient with higher developer costs that will translate to higher property prices, and the low inventory in the market. Property investments by high-net-worth individuals will also contribute to the increase.</p>
<p><strong>Initiate with a HOLD rating, at fair value of S$1.27</strong>. Our target price is based on a FY21E P/E ex-cash of 9.2x, in line with the Singapore peer comparison P/E ex-cash. We expect sales volume to continue growing in 2021. We also expect that property prices will continue to rise. However, we remain cautious with possible property cooling measures that may come. Our target price implies a 7.6% upside to the last traded price.</p>
<p><strong>Key Risks:</strong> Probable property cooling measures, competition from other real estate agency firms</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




PropNex Limited




Asset-light business model showing resilience




PropNex’s core business is in the provision of real estate agency services and project marketing services to its clients. Agency services relate to the sale and lease of public and private residential and commercial/industrial properties, and project marketing services involve marketing for new private residential development projects for third-party property developers. The Group also provides training services to real estate agents which serve as recurring income. In addition, PropNex is also building up their consultancy services business segment.
Stronger sales and profit recorded in 1QFY21 with high demand. Revenue increased 63.3% yoy to S$220.6 million in 1QFY21, mainly from an increase in commission income from agency services of S$47.5m and project marketing services of S$38.0m. This was after reporting a 22.8% yoy increase in revenue to S$515.6 million in FY2020. Q1 revenue alone made up 42.8% of FY2020’s revenue. Profit almost doubled, surging 95.7% to S$14.8m. Drivers of growth were mainly higher transaction volume, attractive mortgage rates and increase in referral fee income (S$0.4m) and government grants (S$0.2m).
Property price run-up likely to continue. Even with property cooling measures that may come into play, and the newly imposed Covid restriction measures, we expect home prices to remain resilient with higher developer costs that will translate to higher property prices, and the low inventory in the market. Property investments by high-net-worth individuals will also contribute to the increase.
Initiate with a HOLD rating, at fair value of S$1.27. Our target price is based on a FY21E P/E ex-cash of 9.2x, in line with the Singapore peer comparison P/E ex-cash. We expect sales volume to continue growing in 2021. We also expect that property prices will continue to rise. However, we remain cautious with possible property cooling measures that may come. Our target price implies a 7.6% upside to the last traded price.
Key Risks: Probable property cooling measures, competition from other real estate agency firms













(Non-SGX Report) PropNex Limited: Asset-Light Business Model Showing Resilience

<h2>Singapore</h2><h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3><table class="table table-striped"><tbody><tr><td style="width: 167.45pt;"><p> </p></td><td style="width: 129.85pt;"><p>CERT (€)</p></td><td style="width: 117.6pt;"><p>MUST (US$)</p></td><td style="width: 117.6pt;"><p>KORE (US$)</p></td></tr><tr><td style="width: 167.45pt;"><p>Period</p></td><td style="width: 129.85pt;"><p>1Q21</p></td><td style="width: 117.6pt;"><p>1Q21</p></td><td style="width: 117.6pt;"><p>1Q21</p></td></tr><tr><td style="width: 167.45pt;"><p>Gross Revenue (S$ m)</p></td><td style="width: 129.85pt;"><p>48.5 (-0.1% YoY)</p></td><td style="width: 117.6pt;"><p>NA</p></td><td style="width: 117.6pt;"><p>34.6 (-2.1% YoY)</p></td></tr><tr><td style="width: 167.45pt;"><p>NPI (S$ m)</p></td><td style="width: 129.85pt;"><p>30.8 (-0.4% YoY)</p></td><td style="width: 117.6pt;"><p>NA</p></td><td style="width: 117.6pt;"><p>20.4 (-2.8% YoY)</p></td></tr><tr><td style="width: 167.45pt;"><p>DPU (S$ c)</p></td><td style="width: 129.85pt;"><p>0.827 (-9.1% YoY)</p></td><td style="width: 117.6pt;"><p>NA</p></td><td style="width: 117.6pt;"><p>Not Disclosed</p></td></tr><tr><td style="width: 167.45pt;"><p>NAV per Unit (S$)</p></td><td style="width: 129.85pt;"><p>2.445</p></td><td style="width: 117.6pt;"><p>0.730</p></td><td style="width: 117.6pt;"><p>Not Disclosed</p></td></tr><tr><td style="width: 167.45pt;"><p>P/B (x)</p></td><td style="width: 129.85pt;"><p>0.978</p></td><td style="width: 117.6pt;"><p>1.030 (Based on 4Q20 NAV)</p></td><td style="width: 117.6pt;"><p>0.90 (Based on 4Q20 NAV)</p></td></tr><tr><td style="width: 167.45pt;"><p>Occupancy (%)</p></td><td style="width: 129.85pt;"><p>94.6</p></td><td style="width: 117.6pt;"><p>92.0</p></td><td style="width: 117.6pt;"><p>91.6</p></td></tr><tr><td style="width: 167.45pt;"><p>Reversion (%)</p></td><td style="width: 129.85pt;"><p>-1.3</p></td><td style="width: 117.6pt;"><p>2.1</p></td><td style="width: 117.6pt;"><p>5.7</p></td></tr><tr><td style="width: 167.45pt;"><p>Gearing (%)</p></td><td style="width: 129.85pt;"><p>38.5</p></td><td style="width: 117.6pt;"><p>41.3</p></td><td style="width: 117.6pt;"><p>37.5</p></td></tr><tr><td style="width: 167.45pt;"><p>Cost of Debt (%)</p></td><td style="width: 129.85pt;"><p>1.72</p></td><td style="width: 117.6pt;"><p>3.18</p></td><td style="width: 117.6pt;"><p>2.82</p></td></tr><tr><td style="width: 167.45pt;"><p>1 Yr Fwd Yield (%)</p></td><td style="width: 129.85pt;"><p>7.95</p></td><td style="width: 117.6pt;"><p>8.00</p></td><td style="width: 117.6pt;"><p>8.3</p></td></tr><tr><td style="width: 167.45pt;"><p>Debt Hedged (%)</p></td><td style="width: 129.85pt;"><p>100</p></td><td style="width: 117.6pt;"><p>NA</p></td><td style="width: 117.6pt;"><p>84.7</p></td></tr><tr><td style="width: 167.45pt;"><p>Target Price</p></td><td style="width: 129.85pt;"><p>NA</p></td><td style="width: 117.6pt;"><p>NA</p></td><td style="width: 117.6pt;"><p>NA</p></td></tr><tr><td style="width: 167.45pt;"><p>Rating</p></td><td style="width: 129.85pt;"><p>NA</p></td><td style="width: 117.6pt;"><p>NA</p></td><td style="width: 117.6pt;"><p>NA</p></td></tr></tbody></table><h3><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> 1Q21 Business Update – Weakening operational metrics with negative reversions and falling occupancies</h3><ul><li>1Q21 revenue and NPI decreased by 0.1% and 0.4% YoY, respectively, to €48.5m (28.4% BB est) and €30.8m. Prolonged COVID-19 lockdowns impacted 1Q21 gross revenue and NPI, notably reducing carpark income in the mixed-use Central Plaza in Rotterdam, the Netherlands and resulting in some vacancy in certain light industrial/logistics assets in France and Denmark. The disposal of 12 higher-yielding and higher-risk assets in the Netherlands, France and Denmark also affected gross revenue, though this was partially offset by new income from recently completed acquisitions in Italy, Germany, the Czech Republic and Slovakia</li><li>1Q21 DPU decreased 9.1% YoY to €0.827c (21.8% BB est). This due to the same factors impacting DI as well as the timing of the investment of the €100m private placement proceeds to offset the additional weighted average units on issue in Mar21. 1Q21 DI was €21.7m, 6.5% lower YoY, due to the same factors affecting gross revenue and NPI. It was further impacted by €0.8m of higher interest expenses from the €500m longer-tenured bond issuances and certain one-off trust expenses of €0.4m</li><li>Overall portfolio occupancy decreased slightly to 94.6% in 1Q21 (vs. 95.1% in 4Q20 and 94.3% in 3Q20), mainly due to vacancies in office assets in France and Finland and the departure of an anchor tenant-customer (Nilfisk), which relocated its operations to Belgium from the Priorparken 700 / 800 asset in Copenhagen, Denmark. CERT recorded 37 new leases and 21 renewals for 19,735sqm and 13,428sqm of space, respectively. Portfolio WALE stood at 4.8 years. Rental reversions came in at -1.3% in 1Q21 (vs +2.1% in 4Q20 and +2.8% in 3Q20)</li><li>Office – Occupancy of 94.5% (vs 95.1% in 4Q20 and 94.9% in 3Q20). CERT recorded 9 new leases and 7 renewals for 1,180sqm and 2,189sqm of space, respectively. 34% tenant retention rate, 21% of expiries and breaks up to 30Sep21 have been de-risked. Office WALE stood at 4.4 years. Rental reversions came in at -1.0% in 1Q21 (vs +1.7% in 4Q20 and -1.4% in 3Q20)   </li><li>Industrial/logistics – Occupancy of 93.8% (vs 94.1% in 4Q20 and 92.3% in 3Q20). CERT recorded 28 new leases and 13 renewals for 18,556sqm and 10,381sqm of space, respectively. 26% tenant retention rate, 79% of expiries and breaks up to 30Sep21 have been de-risked. Industrial WALE stood at 4.8 years. Rental reversions came in at +1.5% in 1Q21 (vs +3.8% in 4Q20 and +14.4% in 3Q20)   </li><li>Portfolio gearing stands at 38.5% (vs. 38.1% in 4Q20 and 35.9% in 3Q20) with average cost of debt of 1.72% pa. (vs. 1.66% in 4Q20 and 1.5% in 3Q20) with 100% of debt hedged. CERT maintained a strong cash position of €75.8m</li><li>CERT currently trades at 7.95% FY21E yield and 0.978x P/B.</li></ul><h3><a href="https://www.smartkarma.com/entities/manulife-us-reit" target="_blank" data-smartkarma-citation="entities:567" rel="noopener">Manulife US REIT (MUST SP)</a> 1Q21 Business Updates – US office market remains muted, mitigated by limited supply and expiry in MUST’s markets</h3><ul><li>Revenue, NPI and DI were not disclosed in 1Q21</li><li>Overall portfolio occupancy dipped further to 92.0% in 1Q21 (vs. 93.4% in 4Q20 and 94.3% in 3Q20), but is still above the US Class-A average of ~82%</li><li>MUST signed 270,000sqft (~5.8% of NLA) of leases in 1Q21 with +2.1% rental reversions (vs. +0.1% in full-year FY20 and +7.9% in 9M20). These leases are mainly from renewals (93.6%), followed by expansion (5.3%) and new leases (1.1%), supported by finance and insurance, administrative, advertising and legal sectors. It has a long WALE of 5.3 years with ~4.4% (by GRI) or 4.3% (by NLA) of leases up for renewal for the remaining of FY21E. Nonetheless, its current portfolio has a 2.1% in-place rental escalations. Given limited supply in MUST’s markets over the next 12 months, these markets is expected to see a 2.5% rent growth, in line with the overall US average</li><li>Tenants’ collection rate remains healthy (98% collection), but challenges for 2021 include: 1) Low physical occupancy at 5-25% (low carpark income), and 2) existing vacancies remain a challenge to fill (larger space takes longer to fill and it’s still a tenant’s market with higher incentive and rent free)</li><li>Portfolio gearing stands at 41.3% (vs. 41.0% in 4Q20 and 39.9% in 3Q20) with average cost of debt of 3.18% pa. (vs. 3.18% in 4Q20 and 3.21% in 3Q20). In Apr21, MUST has refinanced its loans due FY21E at lower interest rate, bringing weighted average interest rate to 3.0% and increasing weighted average debt maturity to 3.4 years</li><li>MUST currently trades at 8.00% FY21E yield and 1.03x P/B. </li></ul><figure class="editor-figure mceNonEditable"><img src="https://mail.google.com/mail/u/0?ui=2&amp;ik=03e35791bb&amp;attid=0.0.3&amp;permmsgid=msg-f:1699422834728702566&amp;th=1795901073311266&amp;view=fimg&amp;sz=s0-l75-ft&amp;attbid=ANGjdJ8sEKl6WDAe8N9__qHKBNe6-08vbrc8QfHwJamRBTAaR_dON_UK1yOULc7lIYoAqOLnG1bIt-bZRfkFUmsv6mNgGuwGup4IAMyZuiuu1S3HH7pcwGFiu6yseig&amp;disp=emb" width="403" height="199" class="editor-image img-responsive" data-image-whitelisted=""></figure><figure class="editor-figure mceNonEditable"><img src="https://mail.google.com/mail/u/0?ui=2&amp;ik=03e35791bb&amp;attid=0.0.4&amp;permmsgid=msg-f:1699422834728702566&amp;th=1795901073311266&amp;view=fimg&amp;sz=s0-l75-ft&amp;attbid=ANGjdJ_0APJf80bwv3E2S_EiRYN8qcm-reP1OQ2z06j7ZbYooytHl5IJJso0tnZEZ2wCt-YWmA-nXxQk1VnMuNtz5DfMAf0FyvFj2bW9VWWOmPzOeJvwjpGsNdafsus&amp;disp=emb" width="364" height="196" class="editor-image img-responsive" data-image-whitelisted=""></figure><h3><a href="https://www.smartkarma.com/entities/propnex-ltd" target="_blank" data-smartkarma-citation="entities:27209" rel="noopener">Propnex Ltd (PROP SP)</a> 1Q21 PATMI almost doubled to S$16.2m; Debt free balance sheet  </h3><p>PROP reported a 96.7% YoY growth in net profit after tax for 1Q21 to S$16.2m(vs S$8.2m in 1Q20), on the back of a 63.3% YoY growth in revenue to S$220.6m (vs S$135.1m in 1Q20). The performance was driven by higher number of transactions completed in 1Q21 following the recovery of private residential market from the property cooling measures in Jul18. Revenue growth was mainly driven due to the increase in commission income from agency services of ~S$47.5m and increase in project marketing services of ~S$38.0m. The results translate to an EPS growth of 95.6% YoY to S$4.01c in 1Q21. PROP remained debt free, and its balance sheet remained robust with cash and cash equivalents of S$118.9m as at 31Mar21, compared to S$105.8m as at 31Dec20. PROP has also taken 70% interest in Ovvy, The People Marketplace, a technology platform that connects service providers to consumers.</p><h3><a href="https://www.smartkarma.com/entities/lh-group-ltd" target="_blank" data-smartkarma-citation="entities:4397" rel="noopener">Pacific Star Development (PSTAR SP)</a> 3Q21 net loss increases, identified uncertainty over operating as going concern</h3><p>PSTAR, whose management is voicing uncertainty over its ability to operate as a going concern, sank further into the red in 3Q21. Net loss widened to S$8.2m as revenue came in 81% YoY lower at S$674,000 due to lower number of Puteri Cove Residences units sold. Gross profit plunged 90% YoY to S$56,000. The group booked an increase of S$1.28m in other expenses largely due to an increase in trade receivables written off as a result of cancellation of sales and purchase agreements for Puteri Cove Residences units. Loss per share was S$1.64c, higher than S$1.6c the year before. As at 31Mar, the group's net liability position was S$69.3m. PSTAR said there is uncertainty as to whether the group is able to meet its contractual obligations in the next 12 months as and when they fall due, and hence there is uncertainty over its ability to operate as a going concern for the next 12 months.</p>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached) CERT (€)MUST (US$)KORE (US$)Period1Q211Q211Q21Gross Revenue (S$ m)48.5 (-0.1% YoY)NA34.6 (-2.1% YoY)NPI (S$ m)30.8 (-0.4% YoY)NA20.4 (-2.8% YoY)DPU (S$ c)0.827 (-9.1% YoY)NANot DisclosedNAV per Unit (S$)2.4450.730Not DisclosedP/B (x)0.9781.030 (Based on 4Q20 NAV)0.90 (Based on 4Q20 NAV)Occupancy (%)94.692.091.6Reversion (%)-1.32.15.7Gearing (%)38.541.337.5Cost of Debt (%)1.723.182.821 Yr Fwd Yield (%)7.958.008.3Debt Hedged (%)100NA84.7Target PriceNANANARatingNANANACromwell European REIT (CERT SP) 1Q21 Business Update – Weakening operational metrics with negative reversions and falling occupancies1Q21 revenue and NPI decreased by 0.1% and 0.4% YoY, respectively, to €48.5m (28.4% BB est) and €30.8m. Prolonged COVID-19 lockdowns impacted 1Q21 gross revenue and NPI, notably reducing carpark income in the mixed-use Central Plaza in Rotterdam, the Netherlands and resulting in some vacancy in certain light industrial/logistics assets in France and Denmark. The disposal of 12 higher-yielding and higher-risk assets in the Netherlands, France and Denmark also affected gross revenue, though this was partially offset by new income from recently completed acquisitions in Italy, Germany, the Czech Republic and Slovakia1Q21 DPU decreased 9.1% YoY to €0.827c (21.8% BB est). This due to the same factors impacting DI as well as the timing of the investment of the €100m private placement proceeds to offset the additional weighted average units on issue in Mar21. 1Q21 DI was €21.7m, 6.5% lower YoY, due to the same factors affecting gross revenue and NPI. It was further impacted by €0.8m of higher interest expenses from the €500m longer-tenured bond issuances and certain one-off trust expenses of €0.4mOverall portfolio occupancy decreased slightly to 94.6% in 1Q21 (vs. 95.1% in 4Q20 and 94.3% in 3Q20), mainly due to vacancies in office assets in France and Finland and the departure of an anchor tenant-customer (Nilfisk), which relocated its operations to Belgium from the Priorparken 700 / 800 asset in Copenhagen, Denmark. CERT recorded 37 new leases and 21 renewals for 19,735sqm and 13,428sqm of space, respectively. Portfolio WALE stood at 4.8 years. Rental reversions came in at -1.3% in 1Q21 (vs +2.1% in 4Q20 and +2.8% in 3Q20)Office – Occupancy of 94.5% (vs 95.1% in 4Q20 and 94.9% in 3Q20). CERT recorded 9 new leases and 7 renewals for 1,180sqm and 2,189sqm of space, respectively. 34% tenant retention rate, 21% of expiries and breaks up to 30Sep21 have been de-risked. Office WALE stood at 4.4 years. Rental reversions came in at -1.0% in 1Q21 (vs +1.7% in 4Q20 and -1.4% in 3Q20)   Industrial/logistics – Occupancy of 93.8% (vs 94.1% in 4Q20 and 92.3% in 3Q20). CERT recorded 28 new leases and 13 renewals for 18,556sqm and 10,381sqm of space, respectively. 26% tenant retention rate, 79% of expiries and breaks up to 30Sep21 have been de-risked. Industrial WALE stood at 4.8 years. Rental reversions came in at +1.5% in 1Q21 (vs +3.8% in 4Q20 and +14.4% in 3Q20)   Portfolio gearing stands at 38.5% (vs. 38.1% in 4Q20 and 35.9% in 3Q20) with average cost of debt of 1.72% pa. (vs. 1.66% in 4Q20 and 1.5% in 3Q20) with 100% of debt hedged. CERT maintained a strong cash position of €75.8mCERT currently trades at 7.95% FY21E yield and 0.978x P/B.Manulife US REIT (MUST SP) 1Q21 Business Updates – US office market remains muted, mitigated by limited supply and expiry in MUST’s marketsRevenue, NPI and DI were not disclosed in 1Q21Overall portfolio occupancy dipped further to 92.0% in 1Q21 (vs. 93.4% in 4Q20 and 94.3% in 3Q20), but is still above the US Class-A average of ~82%MUST signed 270,000sqft (~5.8% of NLA) of leases in 1Q21 with +2.1% rental reversions (vs. +0.1% in full-year FY20 and +7.9% in 9M20). These leases are mainly from renewals (93.6%), followed by expansion (5.3%) and new leases (1.1%), supported by finance and insurance, administrative, advertising and legal sectors. It has a long WALE of 5.3 years with ~4.4% (by GRI) or 4.3% (by NLA) of leases up for renewal for the remaining of FY21E. Nonetheless, its current portfolio has a 2.1% in-place rental escalations. Given limited supply in MUST’s markets over the next 12 months, these markets is expected to see a 2.5% rent growth, in line with the overall US averageTenants’ collection rate remains healthy (98% collection), but challenges for 2021 include: 1) Low physical occupancy at 5-25% (low carpark income), and 2) existing vacancies remain a challenge to fill (larger space takes longer to fill and it’s still a tenant’s market with higher incentive and rent free)Portfolio gearing stands at 41.3% (vs. 41.0% in 4Q20 and 39.9% in 3Q20) with average cost of debt of 3.18% pa. (vs. 3.18% in 4Q20 and 3.21% in 3Q20). In Apr21, MUST has refinanced its loans due FY21E at lower interest rate, bringing weighted average interest rate to 3.0% and increasing weighted average debt maturity to 3.4 yearsMUST currently trades at 8.00% FY21E yield and 1.03x P/B. Propnex Ltd (PROP SP) 1Q21 PATMI almost doubled to S$16.2m; Debt free balance sheet  PROP reported a 96.7% YoY growth in net profit after tax for 1Q21 to S$16.2m(vs S$8.2m in 1Q20), on the back of a 63.3% YoY growth in revenue to S$220.6m (vs S$135.1m in 1Q20). The performance was driven by higher number of transactions completed in 1Q21 following the recovery of private residential market from the property cooling measures in Jul18. Revenue growth was mainly driven due to the increase in commission income from agency services of ~S$47.5m and increase in project marketing services of ~S$38.0m. The results translate to an EPS growth of 95.6% YoY to S$4.01c in 1Q21. PROP remained debt free, and its balance sheet remained robust with cash and cash equivalents of S$118.9m as at 31Mar21, compared to S$105.8m as at 31Dec20. PROP has also taken 70% interest in Ovvy, The People Marketplace, a technology platform that connects service providers to consumers.Pacific Star Development (PSTAR SP) 3Q21 net loss increases, identified uncertainty over operating as going concernPSTAR, whose management is voicing uncertainty over its ability to operate as a going concern, sank further into the red in 3Q21. Net loss widened to S$8.2m as revenue came in 81% YoY lower at S$674,000 due to lower number of Puteri Cove Residences units sold. Gross profit plunged 90% YoY to S$56,000. The group booked an increase of S$1.28m in other expenses largely due to an increase in trade receivables written off as a result of cancellation of sales and purchase agreements for Puteri Cove Residences units. Loss per share was S$1.64c, higher than S$1.6c the year before. As at 31Mar, the group's net liability position was S$69.3m. PSTAR said there is uncertainty as to whether the group is able to meet its contractual obligations in the next 12 months as and when they fall due, and hence there is uncertainty over its ability to operate as a going concern for the next 12 months.

ASEAN Builder's Scoop (11May21) - CERT weakening operational metrics

Singapore

Propnex Limited operates as a real estate agency. The Company offers business strategies, consultation, training, marketing support, and technological innovations for real estate sector, as buying, selling, and renting of properties. Propnex serves customers in Singapore, Indonesia, and Malaysia.

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Propnex Ltd (PROP SP)

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