Average Yield = 7.160%

Last Updated : 18-May-12

Notes

• Pavilion : DPU = 5.73 sen (IPO FY12 Forecast)
  
• Tower : Yield Uses 1H11 DPU = 5.15 sen + 2H11 DPU = 5.7 sen
  
• Al-Aqar KPJ : Yield Uses 1H11 DPU = 5.17 sen + 2H11 DPU = 2,52 sen as it is Observed that 2H DPU > 1H DPU
  
• Al-Hadharah : Yield Uses 2H11 DPU = 8 sen + 1H11 DPU = 4 sen as it is Observed that 2H DPU > 1H DPU
  
• Hektar : Yield Table Uses Full Year DPU 10.5 sen to Compute Yield as Hektar Pays DPU = 2.5 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

Hektar Asset Management Sdn Bhd, the manager of Hektar Real Estate Investment Trust (Hektar REIT), today announced it
has obtained the Securities Commission’s (SC) approval for its proposal to increase its fund size and list new units on the Main Market of Bursa Malaysia Securities Bhd.

With the approval, Hektar REIT is looking to increase its fund size by up to 93.859 million units to a maximum of 413.855 million units.

Approval was also given for the valuation of two retail properties in Kedah to be acquired by Hektar REIT, it said in a statement.

The properties are Landmark Central Shopping Centre and a major portion of the Central Square Shopping Centre, which are collectively worth RM184 million, it said.

The RM181 million acquisition of both malls at a purchase consideration price will also increase REIT’s gross asset value to RM1 billion, it said.

Hektar REIT’s enlarged net lettable area is expected to increase by about 52 per cent after Kedah malls proposed acquisition.

“Our next step is to meet our unitholders to obtain their approval for the proposed acquisition and rights issue through an extraordinary general meeting,” said Datuk Jaafar Abdul Hamid, Chairman and Chief Executive Officer of Hektar Asset Management Sdn Bhd. — Bernama

By RHB Research House

Market Perform (Downgraded)

Target Price: RM1.22

PAVILION REIT’S (PavREIT) first-quarter net profit of RM47.8mil makes up 27.1% of our full-year net profit forecast, slightly above our and consensus full-year estimates. No dividend was declared for the quarter, as PavREIT makes its distribution semi-annually.

The higher-than-expected revenue contribution in the first quarter of financial year 2012 was mainly attributed to the increased rental revenue and sales turnover due to the Lunar New Year and Formula 1 GP events; and the increased shopper traffic from the opening of the linked bridge between KL City Centre and Pavilion, where the manager estimates traffic footfall of 15,000-20,000 people per day.

About 17% of the net lettable area (NLA) due to expire this year was renewed in the first quarter, with rental reversion of about 10%.

Occupancy rates had dropped to around 94% for Pavilion Mall due to its refurbishment works but remain stable for Pavilion Tower.

Note that the manager expects Pavilion Tower to be fully occupied by the third quarter, as a tenant has taken up about 10,000 sq ft NLA (about 6% of Pavilion Tower’s total NLA) and is expected to move in once renovation is completed in June or July.

The conversion of 68,000 sq ft of space previously occupied by TANGS has kicked off in the first quarter. The refurbishment of the space (to be known as Fashion Avenue) is expected to be completed in September, with a soft launch targeted in August. The manager is confident that the space will be fully occupied upon it is launched in September.

Our dividend discounted model-based fair value is kept at RM1.22. However, we downgrade our call on PavREIT to “market perform” (from “outperform”), as the share price has strengthened in recent weeks, hence there is now minimal potential upside to our indicative fair value of the stock.

We continue to like PavREIT due to its large asset size, quality assets and significant long-term potential as rental cycle is still in its early stages.

Al-Hadharah Boustead REIT recorded a higher profit after tax of RM21 million for its first quarter ended March 31, 2012,
compared with the previous RM20 million.

Revenue also improved to RM24.2 million compared with RM22.2 million previously, driven by higher fixed rental income.

In a statement today, Chairman Tan Sri Lodin Wok Kamaruddin said the increased contribution from fixed rental income was due to the additional plantation assets that were acquired last year.

"We are confident of holding steady our earnings for the next three quarters. "Given the REIT's unique positioning of being the only local Islamic plantation REIT, coupled with improving market conditions and steady demand for commodities, we believe our unitholders will benefit from their investment," he said. — Bernama

• 24 Feb 12 : Al Aqar (Table Updated)
  
• 16 Apr 12 : Axis (Table Updated)
  
• 19 Apr 12 : CMMT (Table Updated)
  
• 19 Apr 12 : Tower (No DPU as Semi-Annual Payout)
  
• 24 Apr 12 : Atrium (Table Updated)
  
• 25 Apr 12 : Sunway (Table Updated)
  
• 26 Apr 12 : AmFirst (Table Updated)
  

Average Yield = 7.056%

Last Updated : 30-Apr-12

Notes

• Pavilion : DPU = 5.73 sen (IPO FY12 Forecast)
  
• Tower : Yield Uses 1H11 DPU = 5.15 sen + 2H11 DPU = 5.7 sen
  
• Al-Aqar KPJ : Yield Uses 1H11 DPU = 5.17 sen + 2H11 DPU = 2,52 sen as it is Observed that 2H DPU > 1H DPU
  
• Al-Hadharah : Yield Uses 2H11 DPU = 8 sen + 1H11 DPU = 4 sen as it is Observed that 2H DPU > 1H DPU
  
• Hektar : Yield Table Uses Full Year DPU 10.5 sen to Compute Yield as Hektar Pays DPU = 2.5 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

Sunway Real Estate Investment Trust's (SunREIT) unit SunREIT Capital Bhd has issued RM850mil in nominal value of commercial papers (CPs).

It said on Thursday the CPs were accorded a short a short term rating of P1(s) by RAM Rating Services Bhd.

The RM200mil CPs, will be under a competitive tender, have a tenure of three months and will mature on July 25.

The other RM300mil in CPs would have a one-month tenure and will be placed out while the RM350mil CPs, which would also be placed out, would have a tenure of three months.

Atrium Real Estate Investment Trust's (Atrium REIT) first quarter earnings rose 2.2% to RM2.72mil in the first quarter ended March 31, 2012 from RM2.66mil a year ago.

It said on Tuesday its revenue rose at a stronger pace of 13.1% to RM4.05mil from RM3.52mil. Earnings per unit were 2.23 sen compared with 2.19 sen.

It declared dividend per share of 2.20 sen compared with 2.15 sen a year ago.

"The improved result is due mainly to the additional contribution from the newly acquired Atrium USJ," it said.

Atrium REIT said correspondingly, the property operating expenses and the finance costs had risen due to the new acquisition.

However, interest income declined due to a decrease in deposits with licensed financial institutions. Part of the funds was used to finance the acquisition of Atrium USJ and also to refund the excess security deposits back to the tenant/lessee.

"The Atrium REIT intends to distribute at least 90% of the distributable income (realised) to unitholders for the financial year 2012, which is exempt from tax pursuant to Section 61A(1) of Income Tax Act, 1967," it said.

Axis Real Estate Investment Trust (REIT) has reported a net profit increase of 27.1% from a year earlier to RM20.96mil for its first quarter ended March 31, 2012, on higher revenue and property revaluation surplus.

During the quarter in review, the company posted revenue of RM30.29mil, up 18.5% from a year earlier.

Axis REIT told Bursa Malaysia that it had registered a property revaluation surplus of RM300,000 for the first quarter of 2012.

It had proposed a first interim income distribution of 4.3 sen per unit, up from 4.2 sen per unit for the corresponding period last year.

Axis Real Estate Investment Trust (Axis-REIT) is expanding its portfolio of properties with the proposed acquisition of two parcels of indsutrial land with buildings in Labu, Negeri Sembilan, for RM26.50mil cash.

Axis REIT Managers Bhd, the management company of Axis-REIT, said on Thursday the 29,436 sq metres of land with tenure of 99 years expiring in September 2095, was acquired from LRS Property Sdn Bhd. The acquisition was undertaken by OSK Trustees Bhd, the trustee for Axis-REIT.

Axis REIT Managers said the acquisition was to provide unitholders with stable distribution and to achieve growth in net asset value per unit of the fund.

Last Updated : 30-Mar-12

Notes

• Pavilion : DPU = 5.73 sen (IPO FY12 Forecast)
  
• CMMT : DPU = 1.14sen (11-Nov-11 to 31-Dec-11)
  
• Tower : Yield Uses 1H11 DPU = 5.15 sen + 2H11 DPU = 5.7 sen
  
• Al-Aqar KPJ : Yield Uses 2H10 DPU = 5.17 sen + 1H11 DPU = 3.3 sen as it is Observed that 2H DPU > 1H DPU
  
• Al-Hadharah : Yield Uses 2H11 DPU = 8 sen + 1H11 DPU = 4 sen as it is Observed that 2H DPU > 1H DPU
  
• Hektar : Yield Table Uses Full Year DPU 10.5 sen to Compute Yield as Hektar Pays DPU = 2.5 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