Singapore REITs (S-REITs)

WeWork concerns are seeping into Singapore's real estate sector

SINGAPORE (Oct 2): Concerns about WeWork Cos. may amplify the negative impact of a weakening economy on Singapore’s commercial real estate investment trusts, according to Credit Suisse Group AG.

Poor sentiment on the company could further damp demand for co-working spaces amid slowing gross domestic product growth, hurting office REITs, analysts led by Nicholas Teh wrote in a report.

Will MAS give Singapore REITs more room to grow by increasing the gearing limit?

SINGAPORE (July 10): In an effort to allow Singapore REITs (S-REITs) to better optimise their capital structure, the Monetary Authority of Singapore (MAS) last week announced that it is considering increasing the current gearing limit to 45%.

See: MAS proposing changes to S-REIT capital structure rules and fundraising process

Analysts like Mapletree Commercial Trust for its all rounded FY19 performance

SINGAPORE (Apr 25): Analysts are mostly keeping neutral after Mapletree Commercial Trust (MCT) yesterday announced that its 4Q19 DPU has increased by 1.8% to 2.31 cents from 2.27 cents in 4Q18, bringing FY19 DPU to 9.14 cents, 1.1% higher y-o-y.

Gross revenue was 3.7% higher at $112.9 million from $108.9 million a year ago, driven largely by higher contribution from VivoCity, PSA Building and Bank of America Merrill Lynch HarbourFront (MLHF). Net property income (NPI) was $87.6 million, 3.9% higher than $84.3 million last year.

CCT reports 3.8% higher 1Q DPU of 2.20 cents on higher property contributions

SINGAPORE (April 19): The manager of CapitaLand Commercial Trust (CCT) has reported a 1Q19 distribution per unit (DPU) of 2.20 cents, rising 3.8% y-o-y from 2.12 cents due to higher contributions from Gallileo and Asia Square Tower 2.

Gross revenue and net property income (NPI) for the quarter increased by 3.5% and 3.4% to $99.8 million and $79.8 million, respectively.

Singapore offers buffet of attractive yield plays amid the easing policy environment, says UOB

SINGAPORE (April 1): UOB Kay Hian is recommending a wide variety of yield plays offered by Singapore ranging from aviation and banks, to developers and REITs as central banks around the world continue to ease their monetary policies.   

In a particular, the research house is expecting dovish dispositions at both the Federal Reserve (Fed) and the European Central Bank (ECB) to rekindle general investor interest in yield plays, as an abundance of liquidity make their recurrent dividends more attractive.

Maybank keeps Frasers Centrepoint Trust at 'buy' after solid start to FY19

SINGAPORE (Jan 22): Maybank Kim Eng is maintaining its “buy” call on Frasers Centrepoint Trust (FCT) with an unchanged target price of $2.55 after the trust’s manager reported a 1Q19 DPU of 3.02 cents, up 0.7% on-year due to improved occupancies across all of its assets and positive rental reversions.

See: Frasers Centrepoint Trust posts 0.7% higher 1Q DPU of 3.02 cents

This is the year for office REITs to shine: OCBC

SINGAPORE (Jan 8): OCBC Bank is expecting Singapore office REITs to strengthen further in the near-term this year – and possibly, in the process, demand higher rents to bring about positive rental reversion.

In a Tuesday report, OCBC’s credit research team highlights office REITs as a bright spot among Singapore REITs (S-REITs), with the recent trend of strong new office supply looking to reverse in 2019.

This undervalued REIT's acquisition spree has only just begun, according to DBS

SINGAPORE (Dec 7): DBS Vickers Securities reiterates its “buy” call on Mapletree Logistics Trust (MLT) with a target price of $1.50, which is derived based on an assumed 3% risk free and 50bps higher funding costs than current levels.

The research house’s target price is notably above the consensus average of $1.35, as it believes the street has yet to factor in improved fundamentals post MLT’s recent acquisitions, nor the trust’s potential to surprise on the upside organically and through more acquisitions.

Already a safe harbour, CapitaLand Mall Trust is starting to emerge as a growth play: DBS

SINGAPORE (Dec 7): DBS Vickers Securities reiterates its “buy” call on CapitaLand Mall Trust (CMT) with an adjusted target price of $2.44, which now reflects a higher proportion of equity used to finance its acquisition of Westgate mall.

In a Thursday report, analyst Carmen Tay say she expects a re-rating of CMT’s unit price as its earnings growth returns to an upward trajectory of about 3-4% per annum, versus S-REITs’ average of about 1-2%.

DPU growth ahead for CapitaLand Mall Trust, but sector fundamentals remain weak: Maybank KE

SINGAPORE (Nov 29): Maybank Kim Eng is maintaining “hold” on CapitaLand Mall Trust (CMT) with a higher price target of $2.20 compared to $2.15 previously, after raising distribution per unit (DPU) estimates by 1-7% to factor in the trust’s recently-completed acquisition of a remaining 70% interest in Westgate mall.

The research house continues to remain cautious on the REIT in view of soft retail sales, rising online penetration and declining tourist spending on shopping.

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