Category

Singapore

Feb 03
0

Singapore: Capitaland Commercial Trust, ESR-REIT and more

By | Daily Briefs, Singapore

In today’s briefing:

  • CapitaLand Integrated Commercial Trust – Mixed FY21; Office Will Be Key to Revival
  • Esr-Reit – Steady Performance with New Acquisitions in Sight

CapitaLand Integrated Commercial Trust – Mixed FY21; Office Will Be Key to Revival

By SCCM Asia Research

  • FY21 performance hampered by retail – 2H21 revenue and NPI increased by 54.5% and 61.6% YoY to S$659.4m and S$478.9m, respectively.
  • Occupancies slip but retail rental reversions more of a concern.
  • Office portfolio key to positive surprises – We note that office rents in the CBD region are improving at a far stronger pace than retail.

Esr-Reit – Steady Performance with New Acquisitions in Sight

By SCCM Asia Research

  • FY21 results inline: 2H21 Revenue and NPI grew 4.5% and 2.8% YoY to S$121.4m and S$86.3m, respectively, while 2H21 DPU was flattish at -0.6% YoY to S$1.433c.
  • QoQ improvements in operating metrics: Overall occupancy was up 0.8pp QoQ to 92% in 4Q21, while rent reversion was +3%.
  • New acquisition opportunities in sight; AEIs on track

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Feb 02
0

Singapore: Smartkarma and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Result Update:Dalmia Bharat

Result Update:Dalmia Bharat

By Axis Direct

  • We roll over our estimate to FY24E and value the company at 11x FY24E EV/EBITDA, to arrive at a target price of Rs1945/share. This implies an upside of 9% from the CMP and hence we change our rating from BUY to HOLD.
  • Dalmia Bharat Limited (DBL) reported flat revenue for Q3fY22 (based on restated financials) YoY. The company registered a volume of 5.7 million tonnes per annum (mntpa) against 5.8 mntpa YoY, implying a volume de-growth of 2%, primarily owing to subdued demand.
  • Its EBITDA degrew by 40% on account of higher power/fuel cost and lower realization. Power/fuel cost on a per tonne basis was up 36% while realization contracted by 3%YoY. APAT declined by 48% owing to lower realization and higher costs.
  • 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.

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Jan 31
0

Singapore: Mapletree North Asia Commercial Trust, AIMS APAC REIT and more

By | Daily Briefs, Singapore

In today’s briefing:

  • (Mostly) Asia M&A: January 2022 Roundup
  • AIMS APAC REIT (AAREIT SP) – On a Solid Organic Growth Path

(Mostly) Asia M&A: January 2022 Roundup

By David Blennerhassett

  • For the month of January, 6 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$9bn.
  • The average premium for the new deals announced (or first discussed) in January was ~18%.
  • This compares to the average premium for all deals in 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 33%, 31%, and 31.5% respectively.

AIMS APAC REIT (AAREIT SP) – On a Solid Organic Growth Path

By SCCM Asia Research

  • Solid set of results-  3Q22 revenue grew by 14.5% YoY to S$36.8m and 3Q22 NPI jumped 14.8% YoY to S$27.1m.
  • Rising occupancy rate and +ve rent reversions-  6.1% of portfolio NLA had secured new leases and renewal leases with overall rent reversion at +0.2% in 3Q22 (+2.1% in 2Q22) and higher occupancy rate at 97.6% in 3Q22 (2Q22: 97.3%).
  • Lower share of fixed-rate debts- The share of fixed-rate debts has declined to 57% and ~90% of total debts will mature during FY24-27E.

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Jan 27
0

Singapore: Wilmar International and more

By | Daily Briefs, Singapore

In today’s briefing:

  • StubWorld: Wilmar Gains Ahead Of Adani Wilmar IPO

StubWorld: Wilmar Gains Ahead Of Adani Wilmar IPO

By David Blennerhassett

  • Wilmar International (WIL SP) is coming up “expensive” on my stub monitor, yet still trades at a material 65% discount to NAV. 
  • Preceding my comments on Wilmar are the weekly setup/unwind tables for Asia-Pacific Holdcos.
  • These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold of at least 20%.

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Jan 24
0

Singapore: ARA LOGOS and more

By | Daily Briefs, Singapore

In today’s briefing:

  • ARA Logos (ALLT SP): ESR Bumps. Scheme Meeting Delayed

ARA Logos (ALLT SP): ESR Bumps. Scheme Meeting Delayed

By David Blennerhassett

  • With a little under a week to the Scheme Meeting, ESR-REIT (EREIT SP) revised terms to S$0.097 cash plus 1.7729 new EREIT Units for each ARA LOGOS (ALLT SP) unit.
  • The revised terms provide an indicative Offer price of S$0.933, a 5.3% increase over the original Scheme consideration. 
  • The Scheme Meeting for ARA Logos  – and ESR’s EGM – have been deferred. No definite timetable was provided for its rescheduling although late February is probably a reasonable estimate. 

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Jan 23
0

Singapore: ARA LOGOS, Jardine Matheson Holdings and more

By | Daily Briefs, Singapore

In today’s briefing:

  • ESR-REIT’s Improved Offer for ARA LOGOS: Two Cents More
  • Last Week in Event SPACE: BHP, Jardine Matheson, Cathay Pacific, HK&S Hotels, Large CCASS Moves

ESR-REIT’s Improved Offer for ARA LOGOS: Two Cents More

By Brian Freitas

  • ESR-REIT has announced a bump in the scheme consideration for ARA LOGOS unitholders. Cash increases from S$0.095 to S$0.097 per unit, plus 1.7729 ESR-REIT (EREIT SP) units (from 1.6765 earlier).
  • This follows Glass Lewis and ISS recommending that ARA LOGOS unitholders vote against the Scheme. Plus there is a conflict of interest following ESR Cayman‘s acquisition of ARA Asset Management.
  • While the situation is far from a great outcome for ARA LOGOS unitholders, it is better than the earlier proposal and could pass muster this time around.

Last Week in Event SPACE: BHP, Jardine Matheson, Cathay Pacific, HK&S Hotels, Large CCASS Moves

By David Blennerhassett

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Jan 21
0

Singapore: Rex International Holding, Roxy Pacific Holdings and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Preview Rex International FY21 Results: Prime Beneficiary Of Rising Oil Price
  • Roxy-Pacific (ROXY SP): Circular Out. IFA Says Not Fair But Reasonable

Preview Rex International FY21 Results: Prime Beneficiary Of Rising Oil Price

By Nicolas Van Broekhoven

  • Rex International Holding (REXI SP) will report results around 25/2/2022; we expect a major 2H21 performance inflection as the Norwegian Brage field cash flow is included from 01/01/2021.
  • According to a press release on 13/1/22 the company is actively applying to uplist from Catalist to the mainboard. We see no reason why SGX should not grant this application.
  • Rex’s Oman production has disappointed in 4Q21 but cash flow-wise shortfall should be made up by higher oil prices and Brage. Maiden dividend announcement should be forthcoming.

Roxy-Pacific (ROXY SP): Circular Out. IFA Says Not Fair But Reasonable

By David Blennerhassett

  • An Offeror consortium, led by Teo Hong Lim, founder of Roxy Pacific (ROXY SP), is offering S$0.485/share, a 19.8% premium to last close. The Offer Price will NOT be increased. 
  • The Circular was dispatched yesterday (the Offer Doc was issued on the 5 January), in which the IFA considered the terms not fair but reasonable). 
  • Trading to terms. The first close is the 3 February. 

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Jan 18
0

Singapore: DBS, EC World Reit and more

By | Daily Briefs, Singapore

In today’s briefing:

  • DBS Group Holdings – And Baby Makes Three
  • EC World Reit (ECWREIT SP) – Navigating Its Impending $700m Debt Wall

DBS Group Holdings – And Baby Makes Three

By Thomas J. Monaco

  • Another Troubled Bank Deal In Asia Adds Another Managerial Distraction;  
  • DBS Agreed to Acquire Citigroup’s Taiwan Consumer Franchise for SGD 2.9 bn After Three Taiwan Banks Couldn’t Make This Deal Work; and
  • In Addition, DBS’ Fundamentals Continue to Weaken, With Lower Fees, Compressed Margins, and Modestly Weaker Credit.

EC World Reit (ECWREIT SP) – Navigating Its Impending $700m Debt Wall

By Jason Yap, CFA

  • EC World Reit faces a debt wall of SGD700m+ maturing debts in 2022 
  • EC World REIT is unlikely able to depend on cashflow from operations and existing cash balances to repay maturing debts. Instead, they need to complete a major refinancing
  • We draw from the lessons of EC World Reit’s previous major refinancing exercise in 2019 and highlight key metrics to track closely

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Jan 13
0

Singapore: Sabana Industrial REIT and more

By | Daily Briefs, Singapore

In today’s briefing:

  • One Year After Failed Merger, A Pyrrhic Victory for Sabana’s Unitholders?

One Year After Failed Merger, A Pyrrhic Victory for Sabana’s Unitholders?

By Jason Yap, CFA

  • In December 2020, Sabana’s unitholders voted down a proposed merger with ESR-REIT
  • While Sabana’s unitholders were ostensibly holding out for more favourable transaction terms, this was not forthcoming and transaction ultimately fell through
  • In this Insight, we look into Sabana a year on and discuss whether its unitholders have been left to rue the failed transaction and this was but a pyrrhic victory

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Jan 10
0

Singapore: Olam International and more

By | Daily Briefs, Singapore

In today’s briefing:

  • STI Index Rebalance Preview (March 2022): Olam Could Replace ComfortDelGro

STI Index Rebalance Preview (March 2022): Olam Could Replace ComfortDelGro

By Brian Freitas

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