Ho Bee – Solid Foundation Laid for Next Growth Phase. REIT Listing a Potential Catalyst.

Ho Bee Land – Good Results in Line with Expectations. Await Further Updates on Refinancing.

Singapore and emerging market real estate

Royston Foo

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/18298" target="_blank" data-smartkarma-citation="entities:18298:1">Ho Bee Land Ltd (HOBEE SP)</a> (“HBL”) reported it 4Q 2018 financial results this evening.PATMI for 4Q18 dropped 20.5% YoY to S$81.4 mil. Excluding the impact of the tax provision for Hotel Windsor, underlying PATMI would have remained stable at approximately S$101.7 mil.HBL’s real estate business had performed within expectations. There were also improvements in the financial position of HBL, such as the increase in cash balance, lower net gearing ratio, refinancing of bridging loan and extension of debt maturity.Fair value of HBL is pegged at S$3.32 per share, translating to an upside of 32%. REIT listing remains a potential catalyst. I maintain my BUY rating on HBL.

Ho Bee Land Ltd (HOBEE SP) (“HBL”) reported it 4Q 2018 financial results this evening.PATMI for 4Q18 dropped 20.5% YoY to S$81.4 mil. Excluding the impact of the tax provision for Hotel Windsor, underlying PATMI would have remained stable at approximately S$101.7 mil.HBL’s real estate business had performed within expectations. There were also improvements in the financial position of HBL, such as the increase in cash balance, lower net gearing ratio, refinancing of bridging loan and extension of debt maturity.Fair value of HBL is pegged at S$3.32 per share, translating to an upside of 32%. REIT listing remains a potential catalyst. I maintain my BUY rating on HBL.

Ho Bee Land – 4Q Earnings Hit by Unexpected Tax Provision