Month: July 2010
QCT – BT
QCT records higher pretax profit for 1H
Quill Capita Trust (QCT), a real estate investment trust (REIT), has recorded a higher pre-tax profit of RM16.443 million in the first six months ended June 30, 2010, compared to RM15.44 million in the same period last year.
Its revenue increased 2.8 per cent to RM34.54 million from RM33.58 million previously, said the REIT manager, Quill Capita Management Sdn Bhd (QCM), in a statement today.
QCM chairman Datuk Mohammed Hussein said the long-term and reputable tenants had generated a higher rental income that contributed to QCT’s strong performance.
QCM chief executive officer Chan Say Yeong said the resilient performance of QCT was supported by stable income contribution from its pool of blue-chip tenants.
“Moving forward, the manager will continue with its prudent capital management strategy, focusing on active asset management to grow the value of its portfolio and building strong tenant relationship to ensure high retention rates,” Chan said. — BERNAMA
Sunway – thestar
Sunway REIT sets new industry benchmark
It makes Bursa debut with business model that adopts best practices, market disclosure and good corporate governance
PETALING JAYA: Sunway REIT, which made its debut on Bursa Malaysia on July 8, has set a new industry benchmark in the local real estate investment trust (REIT) market (M-REIT) by adopting best practices in its business model, market disclosure and corporate governance practices.
Sunway REIT is the largest in the country in terms of asset value at RM3.4bil. It has a total gross floor area of 8.1 million sq ft and a market capitalisation of RM2.4bil, which represents about 28% of the total market capitalisation of M-REIT.
The trust’s eight assets comprise Sunway Pyramid Shopping Mall, Sunway Carnival Shopping Mall, SunCity Ipoh Hypermarket, Sunway Resort Hotel & Spa, Pyramid Tower Hotel, Sunway Hotel Seberang Jaya, Menara Sunway and Sunway Tower.
According to Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng, with three hotels in its portfolio, the management company has signed hotel master lease agreements with Sunway City Bhd’s subsidiaries, Sunway Resort Hotel Sdn Bhd and Sunway Hotel Seberang Jaya Sdn Bhd, to mitigate fluctuations in the hotel’s cyclical business.
“The rental-guarantee floor will ensure the minimum rental for Sunway REIT’s 1,190 hotel rooms. Meanwhile, there is no limit as to how high the rental can go when the hotel market turns for the better, which will on the overall benefit the REIT’s income streams,” Ng told StarBiz.
He said Sunway REIT was also the first local REIT to subject its IPO offer to a market price mechanism as well as allowed its asset valuation to be determined by the REIT’s prevailing unit price.
Before the international roadshow for Sunway REIT commenced last month, the REIT manager signed up reputable cornerstone investors including the Government Investment Corp of Singapore, The Employees Provident Fund, Permodalan Nasional Bhd, and Great Eastern Life Assurance (Malaysia) Sdn Bhd, which collectively have confirmed allocation of about 14% stake in the REIT.
It also adopted an over allotment or green-shoe option that came up to 87 million units that will function as a stabilisation mechanism during the one month “stabilising” period until Aug 8.
“We have also proposed for up to 50% of the management fees to be paid in Sunway REIT units and this practice shows that the management company is confident in the REIT’s performance. This should translate to about 10 million units a year,” Ng said.
To attract more global investors, Sunway REIT is working towards being included as an indexed REIT by the Brussels-based European Public Real Estate Association (Epra) and the National Assocation of Real Estate Investment Trusts (Nareit) of the United States.
According to Ng, institutional REIT investors including pension and insurance funds, track these global standard index and use it as a benchmark to guide their investment decisions.
“With RM1.56bil worth of free-float units, big global investors will be attracted to invest in Sunway REIT because of its liquidity. Once accepted as the benchmark indexed REIT for Malaysia, Sunway REIT will be in the global investors’ radar screen,” Ng pointed out.
Based on the institutional offer price of 90 sen a unit, Sunway REIT offers a yield of about 7.5% for institutional investors for the financial year ending June 30, 2011.
Retail investors can look forward to a distribution yield of 7.66%, which is higher than the 6.9% yield disclosed in the prospectus.
The IPO raised RM1.56bil (including the over allotment of 87 million units at RM78mil), of which 44% or RM680mil were subscribed by foreign institutional funds.
Ng said although Sunway REIT had a diversified asset portfolio, some 70% of its asset value and 67% of revenue would be from retail assets, which showed that Sunway REIT was a retail-focused REIT.
The three retail assets have total net lettable area of 2.4 million sq ft and asset value of RM2.4mil, making it the largest retail-focused REIT locally.
“Both the retail and institutional investors are looking at broader and longer-term investment horizon. Being a defensive REIT, unit-holders can look forward to a longer-term growth catalyst as well as low risk and stable yields.
As long as its cashflow remains strong, the dividend payout will be 100% of total net distribution income,” Ng added.
Al Aqar KPJ – thestar
QSR buys 1.94 million KPJ REIT units
PETALING JAYA: QSR Brands Bhd has acquired 1.947 million units in KPJ Real Estate Investment Trust (REIT) from the open market on July 20 for about RM2.012mil.
The purchase was funded via internally generated funds.
QSR said in a filing with Bursa yesterday that the acquistion was based on better return on investment of about 7.3% (based on current dividend yield) as against the current fixed deposit interest rate of about 2.5% to 3.0%.
KPJ REIT is managed and administered by Johor Corp Bhd subsidiary, Damansara Assets Sdn Bhd. Johor Corp also owns 50.35% stake in Kulim (M) Bhd, which in turn has a 61% stake in QSR.
Tower – BT
Tower REIT makes RM7.3m in Q2
Tower Real Estate Investment Trust’s pre-tax profit increased to RM7.32 million for the second quarter ended June 30, 2010 from RM7.71 million in the same quarter last year.
Its revenue, however, declined to RM12.15 million from RM12.76 million previously. — Bernama
Al Aqar KPJ – BT
QSR buys 1.95m units of KPJ REIT
QSR Brands Bhd has bought some 1.95 million units of KPJ REIT for RM2.01 million from the open market.
The reason for the purchase was because QSR has a better return on investment of roughly 7.3 per cent (dividend yield) against a fixed-deposit interest rate of 2.5 per cent to 3 per cent.
“There is also opportunity of capital appreciation given the KPJ REIT’s future acquisition plans and the stable income stream from the tenants of its properties,” QSR told Bursa Malaysia yesterday.
Axis – thestar
Axis REIT to raise RM132mil
Company plans to use the money to buy more properties, reduce gearing
KUALA LUMPUR: Axis REIT Managers Bhd (ARMB), the manager of the world’s first office/industrial Islamic real estate investment trust (REIT), plans to raise RM132mil next month as part of its capital management process, said chief executive officer/executive director Stewart LaBrooy.
“The funds raised will be used to expand our property portfolio and to reduce our gearing,” he told reporters here yesterday at a media briefing in conjunction with its unaudited half yearly results announcement.
LaBrooy said ARMB was looking to acquire two new logistics houses and a retail warehouse in Johor, as well as an office building in Cyberjaya, which would cost about RM190mil in total to add to the existing 23 assets it currently owned.
Axis REIT properties include assets in commercial, office and industrial real estate.
“Upon conclusion of the acquisitions, our total assets under management will be RM1.2bil from the current RM900mil,” he said, adding that on average, the group acquired about five assets annually.
He also said ARMB planned to have at least US$500mil worth of assets so that it could attract attention from the international market and that the group was pushing hard to reach that level.
“Our aim is to acquire good assets in good locations such as in Penang, Klang Valley and Johor Baru that can bring value and benefit to the group and also to the unit holders,” he said.
On the group’s financial results, LaBrooy said ARMB was on the right track, with growth seen in revenue and distribution per unit compared to the preceding quarter despite the volatility in global markets.
“This year also saw us comprehensively revalued five of our properties – Axis Shah Alam DC, BWM Centre PTP, Giant Hypermarket, Nestle Office & Warehouse and Quattro West – and this resulted in a positive change in fair value of RM9.07mil,” he said. Axis REIT, which owns mostly industrial properties, posted a 74.51% rise in net profit to RM21.87mil for the second quarter ended June 30, compared with the same quarter a year ago.
LaBrooy attributed the jump in net profit to a combination of revaluation surplus and realised gains from distributed profit and revaluation gains. Revenue for the quarter under review stood at RM21mil, a rise of just over 21% compared with a year ago.
LaBrooy said Axis REIT’s performance in the third quarter would improve due to the satisfactory performance of its existing portfolio and with Quattro West property coming on stream.
Axis – thestar
Axis REIT posts rise in Q2 net profit
Axis Real Estate Investment Trust (Axis REIT), which owns mostly industrial properties, has posted a 74.51% rise in net profit to RM21.87mil for the second quarter ended June 30, compared with the same quarter a year ago.
According to Axis-REIT Managers Bhd CEO and executive director Stewart Labrooy, the jump in net profit was due to a combination of revaluation surplus and realised gains from distributed profit and revaluation gains. He told StarBiz that the revaluation brought the REIT a surplus of RM9mil. Axis-REIT Managers is the manager of Axis REIT.
Revenue for the quarter under review stood at RM21mil, a rise of just over 21% compared with year ago. Labrooy said in a statement that performance for the third quarter would improve due to the satisfactory performance of the existing portfolio and Quattro West coming onstream.
Axis – BT
Axis REIT Q2 profit soars as property value jumps
AXIS Real Estate Investment Trust says its second quarter net profit almost doubled due to the higher value of its properties.
Axis REIT is bullish on its performance for the rest of the year.
Its net profit for the quarter to June 30 2010 was RM21.9 million, up from RM12.5 million in the same quarter a year earlier.
Revenue went up 21 per cent to RM21 million due to higher gross rental income.
The higher net profit was largely due to the change in its properties’ fair value. The value of its assets rose by some RM9 million in the quarter, compared with RM2 million a year ago.
Excluding this unrealised value, its pre-tax profit increased 15 per cent to RM12.1 million.
Axis REIT plans to pay an income distribution of 4 sen a unit for the second quarter, which is 97 per cent of its realised pre-tax profit.
For the first six months, Axis REIT made a net profit of RM36.1 million, up from RM23 million in the same period last year. Revenue rose 18 per cent to RM40.9 million.
“The (REIT) manager is optimistic that in view of the current satisfactory performance of Axis-REIT’s existing investment portfolio and its growth strategy to actively pursue quality acquisitions, it will be able to maintain its current performance for the coming quarter and the rest of the financial year,” it said in a statement to Bursa Malaysia yesterday.
Axis REIT has leased out all of the space at Quattro West, its property in Petaling Jaya, Selangor.
It bought the building for RM39.8 million in 2007 and budgeted RM7 million for its makeover.
Axis REIT’s properties are now worth RM928 million on its books at the end of June.
Its manager, AXIS REIT Managers Bhd, has targeted to manage RM1 billion worth of assets by the year-end.
It plans to buy five properties valued at about RM180 million in 2010.
In January, it said it was assessing two new warehouses in Port of Tanjung Pelepas in Johor, a factory or a warehouse in Puchong, Selangor, and an office building in Cyberjaya.
CMMT – BT Singapore
CMMT makes debut, looks to long-term resilience
Reit’s IPO proceeds will be channelled into new assets, says CapitaMalls Asia chief
CAPITAMALLS Malaysia Trust (CMMT) made its debut on the Malaysian stock exchange yesterday, stressing its long-term resilience despite a tepid launch.
CapitaMalls Asia (CMA) chief executive Lim Beng Chee said the Reit’s portfolio of RM2.1 billion (S$897 million) will be expanded gradually, with the proceeds of some RM800 million raised from the initial public offer to be injected into a RM1 billion fund that will serve as a pipeline for new assets.
CMA is the controlling shareholder of CMMT’s manager, CapitaMalls Malaysia Reit Management (CMRM), and its sponsor.
CMMT opened at 98.5 sen – half a sen above its retail price but slightly below its institutional price of RM1 a unit, echoing a similar debut by Malaysia’s largest trust, Sunway Reit.
Mr Lim attributed CMMT’s sluggish start to local investors’ lack of Reit exposure, noting that CapitaMall Trust (CMT)’s listing experience in 2002 was also not well received initially by Singapore investors.
Nonetheless, investors have become more knowledgeable, and over the past seven to eight years CMT has proved its resilience, expanding its portfolio almost 10 times to $7.5 billion from $800 million, he pointed out.
Malaysia’s largest pure-play retail Reit, with a market capitalisation of RM1.3 billion, CMMT is also one of the most liquid, with a free-float of 67 per cent. CMA holds almost 42 per cent of CMMT, in which cornerstone investors the Employees Provident Fund and Great Eastern Life Assurance Malaysia own an aggregate 11.4 per cent.
Mr Lim said the RM1 billion fund will be set up within a year, and assured the Reit will grow – ‘otherwise there is no point to listing CMMT in Malaysia’.
Its three current assets – Gurney Plaza in Penang, Sungei Wang Plaza in Kuala Lumpur and The Mines in Selangor – have an average 97 per cent occupancy rate and form part of CMA’s portfolio of 87 properties in five countries.
On Malaysia, Mr Lim said it is attractive because ‘you can buy income-producing assets from day one’. But he indicated that building from the ground up is also something CMA is prepared to do – ‘if we find something interesting.’
CMRM chief executive Sharon Lim said potential income-producing assets will be acquired by the Reit, while CMA will manage the non-income producing ones or those in the development stage, with a view to injecting them into CMMT later.
In the meantime, she said, CMRM will maximise its real estate to drive sales and ultimately yields, having managed to improve the yield from its existing assets by about one per cent to 7.2 per cent.
It has budgeted RM100 million over 2010 and 2011 for asset enhancement and capital expenditure. ‘Every year there will be things to do as retail trends change,’ Ms Lim said.
At 98 sen a unit, retail investors are expected to receive a yield of 7.3 per cent for 2010 and 7.6 per cent the year after – returns Mr Lim said are very attractive compared with government bonds at 4 per cent and fixed deposits at 3 per cent.
‘From my perspective it’s not below the IPO price as the retail price was 98 sen. Institutional investors aren’t selling – they can see there’s more value to the Reit that can be delivered over time.’
CMMT touched an intra-day low of 97.5 sen before finishing at 98 sen.
July 2010
Average Yield = 7.918%
|
REIT |
Period |
DPU (sen) |
Price (RM) |
Yield (%) |
NAV (RM) |
Assets Type |
|
Atrium |
Q1 – Mar10 |
2.1 |
0.96 |
8.750 |
1.0384 |
Industrial |
|
AmanahRaya |
Q1 – Mar10 |
1.8597 |
0.855 |
8.700 |
1.0207 |
Retail |
|
Al-Hadharah |
1H – Dec09 |
5.61 |
1.32 |
8.500 |
1.3148 |
Diversified |
|
Tower |
2H – Dec09 |
5 |
1.21 |
8.264 |
1.6196 |
Office |
|
AmFirst |
1H – Sep09 |
4.87 |
1.19 |
8.202 |
1.33 |
Office |
|
Hektar |
Q4 – Dec09 |
3.1 |
1.25 |
8.240 |
1.2696 |
Retail |
|
UOA |
2H – Dec09 |
5.68 |
1.43 |
7.944 |
1.4868 |
Office |
|
Quill Capita |
2H – Dec09 |
3.9 |
1.02 |
7.647 |
1.2081 |
Office |
|
StarHill |
1H – Dec09 |
3.4567 |
0.89 |
7.393 |
1.2047 |
Diversified |
|
Sunway |
FY11 (Jun) – IPO |
6.7 |
0.89 |
7.528 |
0.97 |
Diversified |
|
CMMT |
FY10 – IPO |
7.16 |
0.98 |
7.238 |
1.03 |
Malls |
|
Al-AQAR KPJ |
2H – Dec09 |
3.8 |
1.05 |
7.238 |
1.04 |
Plantation |
|
Axis |
Q1 – Mar10 |
3.7 |
2.05 |
7.220 |
1.8117 |
Office |
Last Updated : 16-Jul-10
Note : Hektar : Yield Table Uses Full Year DPU 10.3 sen to Compute Yield as Hektar Pays DPU = 2.4 sen for Q1,Q2,Q3 and the Balance in Q4
Withholding tax
- Resident Individual = 10%
- Non Resident Individual = 10%
- Resident Institutional Investors = 10%
- Non-Resident Institutional Investors = 10%
- Resident Companies = 0% ; Subject to Corporate Tax at Prevailing Rate
- Non-Resident Companies = 25% for Year of Assessment 2009