Sunway – BT
Sunway REIT posts RM356m interim profit
Sunway Real Estate Investment Trust posted RM355.9 million pre-tax profit for the six months ended Dec 31, 2010, on the back of RM157.778 million revenue.
For the second quarter, the company registered RM45.2 million pre-tax profit on the back of RM85.333 million revenue.
In a filing to Bursa Malaysia, it said the better performance for the current quarter was contributed by the commencement of new tenancy terms pursuant to renewals at the Sunway Pyramid Shopping Mall about one million square feet of net lettable area achieved an average increase in rental rates of 17.1 per cent for the three-year term.
The stronger performance at Sunway Resort Hotel & Spa and Pyramid Tower Hotel during year-end holiday season further contributed to improved results for the current quarter.
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On the prospect, it said, visitorships to Sunway Pyramid Shopping Mall registered strong quarter-on-quarter growth of 9.7 per cent, whilst Sunway Carnival Shopping Mall recorded moderate growth of 2.9 per cent due to the year-end mega sales campaign and festive and school holidays.
It said occupancy remain strong with Sunway Pyramid at 98 per cent, Sunway Carnival at 93 per cent and Suncity Ipoh Hypermarket at 100 per cent.
The Sunway REIT Management Sdn Bhd believes the Sunway REIT retail properties, especially Sunway Pyramid Shopping Mall, will be able to enjoy another year of solid performance in tandem with the expectation of continued robust domestic consumption, pursuit of lifestyle trends and thriving Sunway Integrated Resort City.
As for the hotel market, it said the Sunway REIT’s hotel properties would continue to perform well in line with the positive outlook for the industry.
In the quarter under review, the Sunway Resort Hotel & Spa and Pyramid Tower Hotel enjoyed strong occupancy (Sunway Resort Hotel & Spa: 70.8 per cent; Pyramid Tower Hotel: 86.3 per cent) and average daily rates (Sunway Resort Hotel & Spa: RM407; Pyramid Tower Hotel: RM258) in conjunction with the year-end school holidays and MICE (meetings, incentives, conferences and exhibitions).
Meanwhile, Sunway Hotel Seberang Jaya, a four-star corporate hotel, enjoyed steady performance as the domestic and global economy recover.
The office market, occupancy at both the Sunway REIT’s office properties, has been stable at 99.5 per cent for Menara Sunway and 97.0 per cent at Sunway Tower.
The occupancy for Menara Sunway and Sunway Tower is expected to remain stable and the rental rates are expected to increase moderately for the renewals in 2011. — Bernama
Axis – BT
Axis-REIT records RM16m profit in Q4
AXIS REIT Managers Bhd has reaped RM16.16 million profit in its fourth quarter ended December 2010 and plans to distribute 5.25 sen a unit to investors.
"Last year, we saw the highest gain in fair value of investment properties for a single year since the listing of the trust," said chief executive officer Stewart Labrooy. He said the company revalued 14 of its stable properties.
"It has led to an increase in the net asset value of the trust to close at RM2.009 a unit compared with RM1.842, a year ago," he told reporters at a briefing in Kuala Lumpur yesterday.
In the fourth quarter of 2010, Axis-REIT bought three more properties, namely Tesco Hypermarket, Axis PDI Centre and Axis Technology Centre. It also concluded the purchase of two IDS warehouses in Seberang Prai, Penang.
Two days ago, Axis-REIT said it will sell an industrial complex in Port Klang for RM14.5 million by June 2011.
"We need to maintain growth by culling smaller assets where the returns have stagnated. We will bring in assets that have capital gain potentials," said Labrooy.
"We'll gain RM764,000 from the sale of industrial complex in Port Klang and this will be chanelled back to unitholders," he added.
On outlook for 2011, he said Axis-REIT is looking to buy five more warehouses in Johor and the Klang Valley and two more office blocks in Cyberjaya. So far, the company has set aside RM365 million for these acquisitions.
Axis – BT
Axis-REIT to reposition assets
Axis Real Estate Investment Trust (Axis-REIT) aims to enhance and reposition its assets to increase performance, said Axis REIT Managers Bhd chief executive officer Stewardt Labrooy.
Axis REIT Managers is the manager of Axis-REIT.
"The aim of the asset enhancement is to assess the REIT's portfolio from a property player's perspective. It will increase the occupancy rate, rental as well as valuation of the properties," Labrooy told a media briefing today.
He said asset enhancement was currently being undertaken for Menara Axis, Crystal Plaza, Fuji Xerox Asia Pacific and Infinity Centre.
Major enhancements would also be undertaken this year on Kayangan Depot in Shah Alam and the Cycle & Carriage complex in Petaling Jaya, he said.
He said the Kayangan Depot building would be repositioned to face Section 15 Shah Alam roundabout while building cladding systems and power supply would be improved and upgraded.
As for the Cycle & Carriage complex, Labrooy said refurbishment of the existing building would include enhancing the exterior and adding new space for optimium use.
He said Axis-REIT, which currently owned a portfolio of 26 commercial, office and industrial real estate in Malaysia, managed total assets worth RM1.3 billion.
Last year, Axis REIT Managers acquired Tesco Hypermarket, Axis PDI Centre and Axis Technology Centre and concluded the purchase of two warehouses from IDS Logistics Services (M) Sdn Bhd in Seberang Prai, Penang.
Axis-REIT recorded a higher pre-tax profit of RM101.401 million for the financial year ended December 31, 2010, compared with RM61.976 million recorded in 2009.
Revenue increased 25 per cent to RM89.851 million from RM71.870 million previously.
The realised income before taxation and available for distribution amounted to RM52.598 million, for the year under review, bringing the total distribution in 2010 to 16 per cent per unit. — Bernama
Axis – BT
Axis REIT to grow 19.6pc in 2011: ECM
ECM Libra expects a 19.6 per cent earnings growth in Axis Real Estate Investment Trust (REIT) Financial Year 11 (FY11) due to contributions from four recently acquired properties.
Axis REIT has completed acquisition of PTP D8 in Johor, Axis Technology Centre in Petaling Jaya, Axis PDI centre in Kuala Langat, Selangor and Tesco Johor as well as its proposal to acquire an office building in Cyberjaya for RM51.3 million which will be completed in the first quarter of this year.
In its research note on Axis REIT, ECM Libra said it expects more acquisitions going forward.
"We understand that the management is working on the acquisition of an office warehouse in Petaling Jaya, a logistics warehouse in Johor and a warehouse/logistics and manufacturing facility in Shah Alam/Klang," ECM Libra said.
"Despite its defensive quality, Axis' average annual total return of 23 per cent since its listing in 2005 outperforms the equity market as represented by the total return of the benchmark FBMKLCI over the corresponding period," the research house said.
ECM Libra said another plus point is its distribution visibility as Axis commits to distribute 99 per cent of its earnings on quarterly basis.
Axis has the most enviable acquisition track record among M-REITs as it has grown its asset under management (AUM) from five properties with AUM of RM260.4 million to 27 properties with AUM of RM1.4 billion now. — Bernama
UOA – BT
UOA REIT post lower pre-tax profit
UOA Real Estate Investment Trust (UOA REIT) posted a lower pre-tax profit of RM25.078 million in the financial year ended Dec 31, 2010, compared to RM58.009 million in 2009.
Revenue fell to RM42.805 million from RM44.636 million in the previous year, said UOA REIT in a filing to Bursa Malaysia today.
“Despite a challenging year, the existing properties continue to enjoy an occupancy rate of at least 85 per cent.
“With the improving economic conditions and outlook, the manager expects the occupancy and rental rates to further improve,” it said. — Bernama
December 2010
Average Yield = 7.047%
|
REIT |
Period |
DPU (sen) |
Price (RM) |
Yield (%) |
NAV (RM) |
Assets Type |
|
AmFirst |
1H – Sep10 |
4.81 |
1.18 |
8.153 |
1.3538 |
Office |
|
Atrium |
Q3 – Sep10 |
2.15 |
1.06 |
8.113 |
1.0386 |
Industrial |
|
Al-AQAR KPJ |
1H – Jun10 |
4.43 |
1.12 |
7.911 |
1.06 |
Plantation |
|
AmanahRaya |
Q3 – Sep10 |
1.9997 |
0.935 |
7.647 |
0.9717 |
Retail |
|
Hektar |
Q4 – Dec09 |
3.10 |
1.35 |
7.630 |
1.2849 |
Retail |
|
StarHill |
2H – Jun10 |
3.199 |
0.88 |
7.270 |
1.2047 |
Diversified |
|
Tower |
1H – Jun10 |
4.50 |
1.24 |
7.258 |
1.6210 |
Office |
|
Quill Capita |
1H – Jun10 |
3.85 |
1.11 |
6.937 |
1.2202 |
Office |
|
UOA |
1H – Jun10 |
5.15 |
1.50 |
6.867 |
1.4900 |
Office |
|
Axis |
Q3 – Sep10 |
4.00 |
2.37 |
6.751 |
1.8891 |
Office |
|
Sunway |
FY11 (Jun) – IPO |
6.70 |
1.03 |
6.505 |
0.9753 |
Diversified |
|
CMMT |
FY10 – IPO |
7.16 |
1.12 |
6.393 |
1.03 |
Malls |
|
Al-Hadharah |
1H – Jun10 |
3.80 |
1.44 |
5.278 |
1.3733 |
Diversified |
Last Updated : 31-Dec-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
REITs – BT
Malaysia REIT yields expected to fall
The yields of Malaysian Real Estate Investment Trusts (REITS) are expected to come down next year in view of the surplus in office buildings with the completion of new projects.
The yield, which is also known as return on investment in properties, is derived by dividing rental with property value.
President of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia, Choy Yue Kwong, said while the surplus in office buildings is expected if more developers receive the nod to build, there are very few premium-grade ‘A’ buildings.
“Investment-grade buildings with premium values are the ones foreigners are looking for,” Choy said in an interview.
Choy said while there are enough of good properties in Kuala Lumpur, not many of them are for sale.
“Some of them are owned by banks and most of them do not have the incentives to sell,” he said.
He said the owners, some of them big corporates like Boustead Holdings Bhd and its major shareholder, Armed Forces Fund Board, own a lot of properties but may not be motivated to sell them as they are in the business of investing in properties and collecting rentals to pay dividend to members.
However, Choy said, there are rare instances when corporates or REITs will sell.
In March this year, Pelaburan Hartanah Nasional Bhd, manager of Amanah Harta Tanah PNB (AHP) sold three parcels of land in Pahang, Perlis and Kedah, together with shopoffice units erected on the parcels, to Permodalan Nasional Bhd for RM2.01 million.
The proceeds from the disposal were used to part-finance the cost of upgrading and refurbishment of Plaza VADS in Taman Tun Dr Ismail, Kuala Lumpur, another property owned by AHP, a REIT.
Choy said that while investment-grade properties are most sought-after, there is no need to buy expensive properties, or Grade A buildings, to get a reasonable yield of seven per cent.
“For instance, you can buy a property in Cyberjaya and still get a reasonable yield.
“It is also important that buildings are rebranded to upmarket category,” he said.
He said one of the well-known office and commercial buildings in KL which has been extensively re-branded to upmarket brand is the Intermark, which is located at the junction of Jalan Tun Razak and Jalan Ampang.
It sets new standards in design and quality by integrating green technology and a lifestyle environment for work and leisure.
The project, which consists of Grade A office towers, an international hotel and retail podium, was a refurbishment of several buildings — City Square, Empire Tower, Plaza Ampang and Crown Princess Hotel.
Choy said market rate of office space for premium Grade A office buildings in Kuala Lumpur is expected to be stable next year with market rate of between RM5 and RM7 per sq ft. — Bernama
November 2010
Results Announcement
- 10 Nov 10 : Sunway (20-May-10 to 30-Sep-10) – DPU 1.51sen
- 3 Nov 10 : AmFirst (1H11) – DPU 4.81sen
- 3 Nov 10 : Hektar (Q310) – DPU 2.5sen
Average Yield = 7.193%
|
REIT |
Period |
DPU (sen) |
Price (RM) |
Yield (%) |
NAV (RM) |
Assets Type |
|
AmFirst |
1H – Sep10 |
4.81 |
1.17 |
8.222 |
1.3538 |
Office |
|
Atrium |
Q3 – Sep10 |
2.15 |
1.05 |
8.190 |
1.0386 |
Industrial |
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Hektar |
Q4 – Dec09 |
3.10 |
1.29 |
7.984 |
1.2849 |
Retail |
|
AmanahRaya |
Q3 – Sep10 |
1.9997 |
0.905 |
7.900 |
0.9717 |
Retail |
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Al-AQAR KPJ |
1H – Jun10 |
4.43 |
1.20 |
7.383 |
1.06 |
Plantation |
|
Tower |
1H – Jun10 |
4.50 |
1.22 |
7.377 |
1.6210 |
Office |
|
StarHill |
2H – Jun10 |
3.199 |
0.885 |
7.229 |
1.2047 |
Diversified |
|
Quill Capita |
1H – Jun10 |
3.85 |
1.07 |
7.196 |
1.2202 |
Office |
|
Axis |
Q3 – Sep10 |
4.00 |
2.33 |
6.867 |
1.8891 |
Office |
|
UOA |
1H – Jun10 |
5.15 |
1.51 |
6.821 |
1.4900 |
Office |
|
Sunway |
FY11 (Jun) – IPO |
6.70 |
1.01 |
6.634 |
0.9753 |
Diversified |
|
CMMT |
FY10 – IPO |
7.16 |
1.14 |
6.281 |
1.03 |
Malls |
|
Al-Hadharah |
1H – Jun10 |
3.80 |
1.40 |
5.429 |
1.3733 |
Diversified |
Last Updated : 30-Nov-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
SunWay – thestar
Sunway REIT records pre-tax profit for Q1
Sunway Real Estate Investment Trust (REIT) recorded a pre-tax profit of RM310.64mil for the first quarter ended Sept 30, 2010, on the back of RM72.45mil revenue.
In a filing to Bursa Malaysia, Sunway REIT Management Sdn Bhd, the manager of Sunway REIT said the retail properties of Sunway REIT continued to enjoy increased visitors during the period under review and occupancy remained strong with Sunway Pyramid at 99%, Sunway Carnival at 93% and Suncity Ipoh Hypermarket at 100%.
It also expects the properties to continue to perform well especially Sunway Pyramid supported by positive economic fundamentals and the thriving Sunway Integrated Resort.
It said this was also reflected in the rental reversions achieved whereby Sunway Pyramid renewed 278 tenancies with net lettable area of approximately 924,000 sq ft representing 87% of the total net lettable area due for renewal in financial year ending June 30, 2011 with total rent increase of 15.8% for the three year-term.
The current renewal also saw the entrance of new retailers/food and beverage concept such as Daiso from Japan, Coach and T-Bowl Concept Restaurant. – Bernama
Hektar – BT
Hektar REIT Q3 profit rises to RM9.7m
Hektar Real Estate Investment Trust’s (Hektar REIT) pre-tax profit for the third quarter ended Sept 30, 2010 rose to RM9.73 million from RM9.58 million in the same quarter in 2009.
Revenue increased to RM22.68 million from RM22.56 million previously.
For the ninth-month period, its pre-tax profit rose to RM28.9 million from RM27.56 million in the corresponding period of the preceding year.
Revenue increased to RM67.89 million from RM66.18 million previously.
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In a filing to Bursa Malaysia, the company attributed the good results to improvement in rentals and car park income.
“In addition, the application of Financial Reporting Standard 117 commencing Jan 1, 2010 also contributed to the higher revenue,” it said.
Hektar REIT said it would continue to optimise the property portfolio through selective asset enhancement in the existing malls, including a proposed cinema for Subang Parade and a new retail zone for Wetex Parade.
“The company will also continue to explore and negotiate potential acquisition opportunities,” it said.
It said following the completion of Mahkota Parade’s refurbishment in the second quarter of 2010, it would maintain the retail centre’s leadership position in Bandar Melaka.
Hektar REIT said it would maintain its view of cautious optimism for the Malaysian retail sector. — Bernama