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/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> 3Q22 DPU +5.8% YoY; Sustained robust occupancy and reversions  </li><li><a href="https://www.smartkarma.com/entities/capitaland-china-trust" target="_blank" data-smartkarma-citation="entities:8859" rel="noopener">CapitaLand China Trust (CLCT SP)</a> 2H21 DPU +35.1% YoY – Negative 3.4% retail reversions a concern</li><li>Office rents and vacancy bottomed in 4Q21; Index rose 1.9% in 2021</li></ul>

Mapletree Logistics Trust (MLT SP) 3Q22 DPU +5.8% YoY; Sustained robust occupancy and reversions  CapitaLand China Trust (CLCT SP) 2H21 DPU +35.1% YoY – Negative 3.4% retail reversions a concernOffice rents and vacancy bottomed in 4Q21; Index rose 1.9% in 2021

ASEAN Builder's Scoop (31Jan22) - MLT Sustained Robust Occupancy, Reversions

External broker reports(aggregated public sources), TA Securities Holdings Berhad

TA Securities Holdings Bhd

External broker reports(aggregated public sources)

Equity Bottom-Up

Sunway Real Estate Investment Trust / Equity Bottom-Up

<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<h2>Singapore</h2>
<h3>
<a href="https://www.smartkarma.com/entities/city-developments-ltd" target="_blank" data-smartkarma-citation="entities:57" rel="noopener">City Developments (CIT SP)</a> 1Q21 Business Updates – SG / AUS residential the bright spot; Gradual reopening of hotels should lift sentiment</h3>
<ul>
<li>Property Development: In Singapore, CIT sold 319 units with total sales value of S$513.6m in 1Q21, +72% YoY in units sold and +84.7% YoY in total sales value. Amber Park performed strongly with sales of around 100 units</li>
<li>In Feb, The Tapestry obtained its TOP (all 861 units are fully sold). Meanwhile, construction activities have resumed at all ongoing development projects. However, due to labour shortage which has affected the entire industry, activities have not returned to pre-COVID levels. CIT does not have any projects due for completion in 2021. To date, 324 units (60%) of Irwell Hill Residences have been sold. Acquisition of site at Northumberland Road will also be developed into a mixed-use project with 408 residential apartments of up to 23 storeys and commercial retail space on the ground floor</li>
<li>Meanwhile in Australia, fuelled by domestic demand, sales increased across CIT’s launched project. The Marker in Melbourne has pre-sold 80% of its 198 units and construction is on track to complete in 2022, while Brickworks Park in Brisbane has achieved pre-sales for 44% of the 132 released units. Waterbrook Bowral, a luxury retirement project in New South Wales that the Group has collaborated with Waterbrook Lifestyle Resorts on, has pre-sold 92% of the 77 townhouses launched and construction is in progress</li>
<li>Investment Properties: 1Q21 committed occupancy for SG office remains resilient at 91.4%, above island-wide occupancy of 88.1%, with positive rental reversion. SG retail portfolio continues to face headwinds. Footfall in the malls for the quarter has been relatively stable, though it is still lower than pre COVID-19 levels. Despite lower footfall, gross turnover sales (GTO) of CIT malls remain strong with 1Q21 GTO registering an increase of over 5% YoY compared to 1Q20 levels. As of 31Mar21, committed occupancy for retail space remains strong at 92.1%, above island-wide occupancy of 91.5%. In Thailand, since Mar21, part of Jungceylon, the Group’s major retail mall in Phuket has been temporarily closed to reduce operational cost. In China, while tenants remain cautious and slow to commit, office leasing demand is gradually returning. In Suzhou, Hong Leong City Center’s Grade-A office tower is now 85% occupied. In Japan, residential rental apartment portfolio within Osaka and Yokohama continues to show stable occupancy and healthy leasing demand</li>
<li>Hotel Operations: 1Q21 global occupancy dropped to 36.8% (1Q20: 52.5%) and global RevPAR decreased by 51.7% YoY to S$44.6 (1Q2020: S$92.4). Singapore continues to face challenges in 2021 until border restrictions are lifted. The UK was severely impacted, particularly in London. The US saw the country gradually reopening with the vaccine roll-out. New York and regional hotels achieved stronger occupancies in 1Q21 particularly with the weekend business. CIT’s M Social New York property in Times Square is expected to open in 2Q21. A community outbreak in Feb21 in Auckland led to lockdowns in New Zealand, which disrupted business and leisure travel in NZ over most of Feb and the early part of Mar</li>
<li>In Feb21, CIT acquired a 55% effective interest in Shenzhen Longgang Tusincere Tech Park in China’s high-growth Silicon Valley from its China JV, Sincere Property Group, and two entities of China Ping An for RMB850m (~S$174m). CIT now holds an 84.6% equity interest in the holding company, Shenzhen Tusincere Technology Park Development, which holds a 65% interest in the project. The remaining 35% interest in the project is held by the Shenzhen Longgang District state-owned enterprise</li>
<li>Net gearing ratio (factoring in revaluation surplus from investment properties) stands at 65% with interest cover at 1.7 times. Cash reserves stands at S$3.4bn with cash and available undrawn committed bank facilities amounts to a total S$5.5bn</li>
<li>CIT currently trades at 19.8x FY21E P/E and 0.8x P/B.  </li>
</ul>

Singapore

City Developments (CIT SP) 1Q21 Business Updates – SG / AUS residential the bright spot; Gradual reopening of hotels should lift sentiment

Property Development: In Singapore, CIT sold 319 units with total sales value of S$513.6m in 1Q21, +72% YoY in units sold and +84.7% YoY in total sales value. Amber Park performed strongly with sales of around 100 units
In Feb, The Tapestry obtained its TOP (all 861 units are fully sold). Meanwhile, construction activities have resumed at all ongoing development projects. However, due to labour shortage which has affected the entire industry, activities have not returned to pre-COVID levels. CIT does not have any projects due for completion in 2021. To date, 324 units (60%) of Irwell Hill Residences have been sold. Acquisition of site at Northumberland Road will also be developed into a mixed-use project with 408 residential apartments of up to 23 storeys and commercial retail space on the ground floor
Meanwhile in Australia, fuelled by domestic demand, sales increased across CIT’s launched project. The Marker in Melbourne has pre-sold 80% of its 198 units and construction is on track to complete in 2022, while Brickworks Park in Brisbane has achieved pre-sales for 44% of the 132 released units. Waterbrook Bowral, a luxury retirement project in New South Wales that the Group has collaborated with Waterbrook Lifestyle Resorts on, has pre-sold 92% of the 77 townhouses launched and construction is in progress
Investment Properties: 1Q21 committed occupancy for SG office remains resilient at 91.4%, above island-wide occupancy of 88.1%, with positive rental reversion. SG retail portfolio continues to face headwinds. Footfall in the malls for the quarter has been relatively stable, though it is still lower than pre COVID-19 levels. Despite lower footfall, gross turnover sales (GTO) of CIT malls remain strong with 1Q21 GTO registering an increase of over 5% YoY compared to 1Q20 levels. As of 31Mar21, committed occupancy for retail space remains strong at 92.1%, above island-wide occupancy of 91.5%. In Thailand, since Mar21, part of Jungceylon, the Group’s major retail mall in Phuket has been temporarily closed to reduce operational cost. In China, while tenants remain cautious and slow to commit, office leasing demand is gradually returning. In Suzhou, Hong Leong City Center’s Grade-A office tower is now 85% occupied. In Japan, residential rental apartment portfolio within Osaka and Yokohama continues to show stable occupancy and healthy leasing demand
Hotel Operations: 1Q21 global occupancy dropped to 36.8% (1Q20: 52.5%) and global RevPAR decreased by 51.7% YoY to S$44.6 (1Q2020: S$92.4). Singapore continues to face challenges in 2021 until border restrictions are lifted. The UK was severely impacted, particularly in London. The US saw the country gradually reopening with the vaccine roll-out. New York and regional hotels achieved stronger occupancies in 1Q21 particularly with the weekend business. CIT’s M Social New York property in Times Square is expected to open in 2Q21. A community outbreak in Feb21 in Auckland led to lockdowns in New Zealand, which disrupted business and leisure travel in NZ over most of Feb and the early part of Mar
In Feb21, CIT acquired a 55% effective interest in Shenzhen Longgang Tusincere Tech Park in China’s high-growth Silicon Valley from its China JV, Sincere Property Group, and two entities of China Ping An for RMB850m (~S$174m). CIT now holds an 84.6% equity interest in the holding company, Shenzhen Tusincere Technology Park Development, which holds a 65% interest in the project. The remaining 35% interest in the project is held by the Shenzhen Longgang District state-owned enterprise
Net gearing ratio (factoring in revaluation surplus from investment properties) stands at 65% with interest cover at 1.7 times. Cash reserves stands at S$3.4bn with cash and available undrawn committed bank facilities amounts to a total S$5.5bn
CIT currently trades at 19.8x FY21E P/E and 0.8x P/B.  


ASEAN Builder's Scoop (20May21) - CIT resi the bright spot

Deciphering real estate markets globally., Rems Advisors

TAN Kok Keong

Deciphering real estate markets globally.

Rems Advisors

<p>We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for <a href="https://www.smartkarma.com/entities/5225" target="_blank" data-smartkarma-citation="entities:5225:1">Country Garden Holdings Co (2007 HK)</a> to close all its showrooms in China.  The following are some observations from us, post-visit. </p><h2>Key observations from the visit</h2><p>The following are our key observations and feedback from agents/visitors we spoke to: </p><ul><li>
<strong>The number of visitors shrank: </strong>The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…</li></ul>

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co (2007 HK) to close all its showrooms in China.  The following are some observations from us, post-visit. Key observations from the visitThe following are our key observations and feedback from agents/visitors we spoke to: 
The number of visitors shrank: The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…

Seeing the Forest for the Trees in Malaysia - Country Garden

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.

<p>§  <strong>Ascendas REIT has recently replaced CapitaLand Mall Trust as Singapore's largest capitalised REIT – and has been the second-best performing REIT in the YTD with an 11.9% total return.</strong></p><p>§  <strong>The capitalisation of Singapore’s REIT Sector has almost doubled over the past five years. Singapore’s REIT Sector also maintains a competitive edge with higher average yields and lower average gearing ratios than the combined REIT Sector of Japan, Australia and Hong Kong. </strong></p><p>§  <strong>The NikkoAM - StraitsTrading Asia ex Japan REIT ETF  which is expected to include up to 70% weightage in Singapore REITs is scheduled to list on SGX on 29 March 2017. Ascendas REIT and CapitaLand Mall Trust are expected to maintain relatively large weightings in the ETF. </strong></p>

§  Ascendas REIT has recently replaced CapitaLand Mall Trust as Singapore's largest capitalised REIT – and has been the second-best performing REIT in the YTD with an 11.9% total return.§  The capitalisation of Singapore’s REIT Sector has almost doubled over the past five years. Singapore’s REIT Sector also maintains a competitive edge with higher average yields and lower average gearing ratios than the combined REIT Sector of Japan, Australia and Hong Kong. §  The NikkoAM - StraitsTrading Asia ex Japan REIT ETF  which is expected to include up to 70% weightage in Singapore REITs is scheduled to list on SGX on 29 March 2017. Ascendas REIT and CapitaLand Mall Trust are expected to maintain relatively large weightings in the ETF. 

Ascendas REIT Is Now Singapore's Largest Capitalised REIT

Malaysia

Sunway Real Estate Investment Trust invests in retail, office, and hotel properties.

Sunway Real Estate Investment Trust (SREIT MK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sunway Real Estate Investment Trust (SREIT MK)

ASEAN Builder's Scoop (31Jan22) - MLT Sustained Robust Occupancy, Reversions

CLCT negative retail reversions a concern; 4Q21 office rents bottomed; 4Q21 retail rents recovered; Industrial rents trending upwards; Phils office...

SCCM Asia Research

Still Impacted by MCOs

Sell Sunway Real Estate Investment Trust: Still Impacted by MCOs. - By: TA Securities Holdings Bhd

TA Securities Holdings Bhd

ASEAN Builder's Scoop (20May21) - CIT resi the bright spot

CIT resi the bright spot, hotels reopening key catalyst; MINT acquires US$1.32bn US Data Centre; Luxury landed homes market on uptrend; SREIT no...

SCCM Asia Research

Seeing the Forest for the Trees in Malaysia - Country Garden

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co...

TAN Kok Keong

Ascendas REIT Is Now Singapore's Largest Capitalised REIT

§ Ascendas REIT has recently replaced CapitaLand Mall Trust as Singapore's largest capitalised REIT – and has been the second-best performing REIT...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)