Asset Enhancement Initiative (AEI)

Analysts neutral on CapitaLand Mall Trust on weak retail outlook, but AEIs may help spur growth

SINGAPORE (Oct 23): Analysts are keeping a rather neutral stance on CapitaLand Mall Trust (CMT) following its results announcement on Oct 21.

The trust posted a 4.8% increase in its 3Q19 DPU to 3.06 cents from 2.92 cents in 3Q18, with distributable income increasing 9.1% y-o-y to $113.0 million.

Gross revenue also grew 17.9% y-o-y to $201.1 million, mainly due to the completion of the acquisition of the remaining 70.0% interest in Westgate on Nov 1, 2018, and the opening of Funan after a three-year redevelopment on June 28, 2019.

Frasers Commercial Trust lacks near-term catalysts despite positive developments, say analysts

SINGAPORE (Oct 22): CGS-CIMB Securities and RHB Research are maintaining their respective “hold” and “neutral” calls on Frasers Commercial Trust (FCOT), both with a $1.50 price target each.

The former has tweaked its FY1920 DPU marginally and introduced FY21 estimates, while latter is expecting operational weakness to persist in FY19 before a recovery is due in FY20.

This comes after the trust’s manager last week declared a 4Q DPU of 2.40 cents, down 0.4% from a year ago and in line with both research houses’ estimates.

TEE International subsidiaries secure new engineering contracts worth $58 mil

SINGAPORE (Oct 16): TEE International’s wholly-owned subsidiaries, PBT Engineering and Trans Equatorial Engineering, have been awarded new engineering contracts worth $58 million to carry out asset enhancement initiative (AEI) and mechanical & electrical (M&E) works for both repeat and new clients.

Analysts stay positive on Frasers Centrepoint Trust on draw of larger malls

SINGAPORE (July 25): Analysts are keeping their positive outlooks on Frasers Centrepoint Trust (FCT) after the REIT saw its distribution per unit (DPU) climb 1.8% y-o-y to 3.053 cents for the 3Q18 ended June.

“Despite coming off its seasonally strongest 2Q, FCT continued to deliver strong operating performance in 3Q18,” says DBS Group Research lead analyst Carmen Tay in a flash note on Wednesday.

DBS is keeping its “buy” call on FCT with an unchanged target price of $2.45.

AA REIT to carry out $13 mil enhancement of NorthTech facility

SINGAPORE (July 9): The manager of AIMS AMP Capital Industrial REIT (AA REIT) announced Monday that it will be carrying out an asset enhancement initiative (AEI) at its NorthTech facility in Woodlands Industrial Park for $13 million.

Valued at $102 million, NorthTech is a four-storey, high-tech light industrial building with a basement carpark.

Does Frasers Centrepoint Trust still have legs to run?

SINGAPORE (Apr 26): Maybank Kim Eng, CIMB and OCBC are maintaining their “buy” recommendations on Frasers Centrepoint Trust (FCT) with the respective target prices of $2.55, $2.41 and $2.49.

On the other hand, Phillip Capital is reiterating its “neutral” rating on the trust with a $2.14 target price.

This follows the announcement of FCT’s latest 2Q results, which came in line with both research houses’ expectations with a 2% higher DPU of 3.10 cents from 3.04 cent a year ago.

IWG to launch Spaces co-working facility in Perennial's TripleOne Somerset

SINGAPORE (Apr 25): Perennial Real Estate Holdings announced that IWG, a provider of flexible workspace solutions, has leased over 35,000 sf of space at TripleOne Somerset to operate its Spaces co-working space concept.

The site will span over two floors and will be Spaces’ flagship facility in Orchard Road, as well as the largest facility when it commences operation in mid-2019.

Spaces is an Amsterdam-based lifestyle co-working concept.

Near-term operational weakness seen persisting in Frasers Commercial Trust

SINGAPORE (Apr 23): Frasers Commercial Trust on Friday announced that its 2Q18 DPU dropped 4.4% to 2.40 cents from 2.51 cents a year ago, due to lower revenue and income from properties.

Revenue during the quarter dropped 18% to $33 million from $40.2 million, due to occupancy rates for the properties in Singapore, Central Park, 357 Collins Street, the absence of one-off payment in relation to a termination of lease in Central Park and the effects of the average weaker AUD.

Hence, net property income (NPI) was 25.3% lower y-o-y at $22.4 million

This emerging property giant could see a hospitality REIT listing in 2020

SINGAPORE (Apr 4): Soochow SSD Capital Markets (SCCM) has started coverage on Oxley Holdings at “buy” with a target price of 63 cents, which is pegged at a 20% discount to end-2018 RNAV estimates.

In all, SCCM projects for 11.4% EPS CAGR from FY18-20 with the hand-over of development projects. It expects gross margin from Oxley’s Singapore and overseas projects to exceed 15% and 25%, respectively, with blended margins to be around 25%.

OUE Commercial REIT's makeover for One Raffles Place likely to improve shopper circulation: CIMB

SINGAPORE (Mar 23): CIMB says the asset enhancement initiative (AEI) for One Raffles Place (ORP) is likely to improve the mall’s shopper circulation, as well as create more open retail areas with better visibility.

The other is the prospect of greater earnings visibility for OUE Commercial REIT (OUE C-REIT) through a longer-than-current-average lease term while having a larger single tenant which could optimise property management resources.

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