AmanahRaya – BT
Buy, target price RM1.16
MAYBANK Investment Research is keeping its “Buy” call on AmanahRaya Real Estate Investment Trust (ARREIT) (5127) for its strong, resilient organic earnings growth and attractive 9.4 per cent 2011 yield.
Its near-term catalysts are yield-accretive acquisitions (expected to be more than 7 per cent yield) and the potential emergence of new shareholders.
“This could raise our 2011-2012 earnings forecasts by 0.1-10 per cent, ARREIT’s shareholder profiles and provide additional funding source for future acquisition,” the research house said.
It maintains its earnings forecasts and discounted cash flow derived target price of RM1.16 per share.
Maybank Investment also noted that ARREIT was said to be close to securing a few assets (retail and office buildings) in the Klang Valley from a government-linked company.
Total value of the assets is estimated to be up to RM300 million and their purchase will be funded through a debt equity mix.
Post-acquisitions, ARREIT’s total asset value will increase by up to 33 per cent to around RM1.2 billion from RM913.3 million currently.
Its management aims to hit RM1.5 billion asset size by June next year.
AmFirst – BT
AmFIRST REIT nets RM25 revenue in Q1
AmFIRST Real Estate Investment Trust (AmFIRST) has registered a revenue of RM25.11 million for its first quarter ended June 30, 2010, up by 6.17 per cent from RM23.65 million in the same quarter last year.
Its net property income rose 15.94 per cent to RM17.66 million from RM15.23 million previously. However, the company’s income after tax declined marginally to RM9.94 million from RM10.58 million previously due to higher interest expense that resulted from the overnight policy rate (OPR) hike and provision for doubtful debt, AmFIRST said in a filing to Bursa Malaysia today.
“Despite a marginal slip in income after tax for the first quarter period, we are pleased to report a positive start to the year with a fair performance of all six AmFIRST’s assets during the three-month period,” said Lim Yoon Peng, chief executive officer of Am ARA REIT Managers Sdn Bhd, the manager of AmFIRST.
During the three-month period under review, the overall occupancy rate of AmFIRST’s property portfolio recorded a slight increase to 82.92 per cent from 82.36 per cent.
“Our asset management team, together with the appointed property managers are actively promoting the existing vacant space at Menara Merais, Kelana Brem Towers and The Summit Subang USJ,” Lim said.
“Judging from the feedback and enquiries received from potential tenants, we hope to seal a few tenancies within the second quarter period ended September 30, 2010,” he said, adding that a more aggressive leasing effort will be undertaken amid the growing competition and supply of office and retail space.
AmFIRST, which earlier this year completed the refurbishment of Menara Merais, has lined up asset enhancement works on its other properties to make it attractive to potential and existing tenants. — Bernama
Hektar – BT
Buy, fair value price RM1.23
AMRESEARCH Sdn Bhd has maintained a “buy” call on Hektar REIT Bhd’s (5121) due to its future earnings potential which are in line with expectations despite a weak occupancy.
In its research note, AmResearch said Hektar has attractive yield and defensive assets under its portfolio with a fair value of RM1.23 a unit under review pending a meeting with the management.
Hektar reported a net income of RM9 million for second quarter 2010, taking its first half earnings in 2010 to RM19 million.
Net income grew by 7 per cent on the back of 4 per cent increase in rental income. This is mostly driven by stronger occupancy in Mahkota Parade following its asset enhancement exercise.
Similarly, Wetex Parade showed stronger occupancy to 92 per cent, from 90 per cent as at end of last year.
However, Subang Parade’s tenancy dropped to 95 per cent (from 100 per cent) as some of its tenants moved out, most notably Toys R US.
While this is a slight setback to the portfolio, AmResearch said this gives an opportunity for Hektar to redesign its mall concept at certain floors, thus enhancing its mall.
At current price, the REIT is trading at par to its net asset value of RM1.28 per unit and its current yield of 9 per cent remains attractive comparing against 10-year government bonds (4.2 per cent) and fixed deposit of 2.8 per cent,
Hektar – BT
Hektar REIT Q2 net income up 3.2pc
Hektar Real Estate Investment Trust’s (Hektar REIT) net income for the second quarter ended June 30, 2010 rose by 3.2 per cent to RM9.1 million, or 2.85 sen per unit.
Its revenue rose by 1.6 per cent to RM22.2 million compared with the preceding year’s quarter.
In a statement today, Hektar Asset Management Sdn Bhd, the manager for Hektar REIT, said the results demonstrated the advantages of diversity within its portfolio.
Its chief executive officer, Datuk Jaafar Abdul Hamid, said the refurbishment and re-launch of Mahkota Parade has been fruitful as occupancy and rental reversions were showing positive signs.
Hektar REIT declared a second quarter dividend per unit of 2.50 sen, up 4.2 per cent.
It said based on the closing price of RM1.24 on June 30, this represented an annualised yield of 8.1 per cent. — Bernama
July 2010
Results announcement
- 1 Jun 10 : Al Aqar – DPU 4.43 sen
- 12 Jul 10 : StarHill – DPU 3.199 sen
- 15 Jul 10 : AmanahRaya – DPU 1.9997 sen
- 19 Jul 10 : Axis – DPU 4 sen
- 22 Jul 10 : UOA – DPU 5.15 sen
- 22 Jul 10 : Tower – DPU 4.5 sen
- 22 Jul 10 : Atrium – DPU 2.15 sen
- 29 Jul 10 : QCT – DPU 3.85 sen
Average Yield = 7.799%
|
REIT |
Period |
DPU (sen) |
Price (RM) |
Yield (%) |
NAV (RM) |
Assets Type |
|
AmanahRaya |
Q2 – Jun10 |
1.9997 |
0.86 |
9.301 |
1.0207 |
Retail |
|
Atrium |
Q2 – Jun10 |
2.15 |
0.99 |
8.687 |
1.0379 |
Industrial |
|
Al-Hadharah |
1H – Dec09 |
5.61 |
1.34 |
8.373 |
1.3148 |
Diversified |
|
AmFirst |
2H – Mar10 |
4.88 |
1.19 |
8.202 |
1.353 |
Office |
|
Hektar |
Q4 – Dec09 |
3.1 |
1.26 |
8.175 |
1.2696 |
Retail |
|
Al-AQAR KPJ |
1H – Jun10 |
4.43 |
1.15 |
7.704 |
1.06 |
Plantation |
|
Axis |
Q2 – Jun10 |
4.0 |
2.09 |
7.656 |
1.8404 |
Office |
|
Quill Capita |
1H – Jun10 |
3.85 |
1.03 |
7.476 |
1.2202 |
Office |
|
Tower |
1H – Jun10 |
4.5 |
1.23 |
7.317 |
1.6210 |
Office |
|
Sunway |
FY11 (Jun) – IPO |
6.7 |
0.93 |
7.204 |
0.97 |
Diversified |
|
UOA |
1H – Jun10 |
5.15 |
1.47 |
7.007 |
1.4900 |
Office |
|
CMMT |
FY10 – IPO |
7.16 |
1.04 |
6.885 |
1.03 |
Malls |
|
StarHill |
2H – Jun10 |
3.199 |
0.865 |
6.287 |
1.2047 |
Diversified |
Last Updated : 30-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
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.