Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/keppel-dc-reit" target="_blank" data-smartkarma-citation="entities:85" rel="noopener">Keppel DC REIT (KDCREIT SP)</a> 2H21 DPU +2.8% YoY; Rising portfolio valuations as Cap rates tighten in APAC</li><li><a href="https://www.smartkarma.com/entities/parkway-life-reit" target="_blank" data-smartkarma-citation="entities:13422" rel="noopener">Parkway Life REIT (PREIT SP)</a> Parkway Life REIT (PREIT SP) 4Q21 DPU came in flat; Consistently expensive but delivering stable results</li><li><a href="https://www.smartkarma.com/entities/capitaland-integrated-commercial-trust" target="_blank" data-smartkarma-citation="entities:105" rel="noopener">Capitaland Integrated Commercial Trust (CICT SP)</a> CapitaLand Integrated Commercial Trust (CICT SP) to sell JCube at &lt;4% yield; Received a 10yrs ROFR on the potential redevelopment of the site  </li></ul>

Keppel DC REIT (KDCREIT SP) 2H21 DPU +2.8% YoY; Rising portfolio valuations as Cap rates tighten in APACParkway Life REIT (PREIT SP) Parkway Life REIT (PREIT SP) 4Q21 DPU came in flat; Consistently expensive but delivering stable resultsCapitaland Integrated Commercial Trust (CICT SP) CapitaLand Integrated Commercial Trust (CICT SP) to sell JCube at &lt;4% yield; Received a 10yrs ROFR on the potential redevelopment of the site  

ASEAN Builder's Scoop (25Jan22) - KDCREIT Rising Portfolio Valuations

<ul><li><a href="https://www.smartkarma.com/entities/frasers-property-ltd" target="_blank" data-smartkarma-citation="entities:1670" rel="noopener">Frasers Property Ltd (FPL SP)</a> providing bridging loan for land investments in China to a JV partner</li><li><a href="https://www.smartkarma.com/entities/yanlord-land-group-ltd" target="_blank" data-smartkarma-citation="entities:14152" rel="noopener">Yanlord Land (YLLG SP)</a> raked in RMB5.075bn pre-sales with 100% sellout at Yanlord Arcadia Shanghai  </li><li>Cuscaden Peak to cover S$34m break fee if <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952" rel="noopener">Singapore Press Holdings (SPH SP)</a> shareholders vote down <a href="https://www.smartkarma.com/entities/keppel-corp-ltd" target="_blank" data-smartkarma-citation="entities:12" rel="noopener">Keppel Corp (KEP SP)</a> offer</li></ul>

Frasers Property Ltd (FPL SP) providing bridging loan for land investments in China to a JV partnerYanlord Land (YLLG SP) raked in RMB5.075bn pre-sales with 100% sellout at Yanlord Arcadia Shanghai  Cuscaden Peak to cover S$34m break fee if Singapore Press Holdings (SPH SP) shareholders vote down Keppel Corp (KEP SP) offer

ASEAN Builder's Scoop (26Nov21) - FPL Provides Loan to China JV Partner

<ul><li><a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a> settles with insurers for HK$334m over damage to Festival Walk mall</li><li>New bonus GFA incentive scheme for developments that meet standards on digitalization and productivity</li><li><a href="https://www.smartkarma.com/entities/frasers-property-ltd" target="_blank" data-smartkarma-citation="entities:1670" rel="noopener">Frasers Property Ltd (FPL SP)</a> scraps plan to acquire Vietnam property developer</li></ul>

Mapletree North Asia Commercial Trust (MAGIC SP) settles with insurers for HK$334m over damage to Festival Walk mallNew bonus GFA incentive scheme for developments that meet standards on digitalization and productivityFrasers Property Ltd (FPL SP) scraps plan to acquire Vietnam property developer

ASEAN Builder's Scoop (25Nov21) - MAGIC Settles FW's Insurance Claims

Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Jefferies strategist Chris Wood made an interesting comment in his 4Q21 Asia Maxima report. He expressed a bullish view on Singaporean residential property developers, quoting a 40% discount to book and rapidly improving fundamentals. Here is a short report on the sector to figure out whether his bullishness is warranted or not.
<ul>
<li>
Supply &amp; demand for residential property is not necessarily out of sync. The 2009-2013 period was a bubble and should not be seen as a baseline.
</li>
<li>
The retail, office and hospitality segments have suffered over the past two years due to cross-border travel restrictions, working from home during the pandemic and the threat from e-commerce. But several of these factors are one-off in nature.
</li>
<li>
I see value in City Developments, given high-quality assets, excellent execution and an upside of almost +60% using reasonable assumptions.
</li>
<li>
I’m also bullish on small-cap Bukit Sembawang, which sit on a valuable land bank and has won awards as one of the best property developers in Singapore.
</li>
</ul>

Jefferies strategist Chris Wood made an interesting comment in his 4Q21 Asia Maxima report. He expressed a bullish view on Singaporean residential property developers, quoting a 40% discount to book and rapidly improving fundamentals. Here is a short report on the sector to figure out whether his bullishness is warranted or not.


Supply &amp; demand for residential property is not necessarily out of sync. The 2009-2013 period was a bubble and should not be seen as a baseline.


The retail, office and hospitality segments have suffered over the past two years due to cross-border travel restrictions, working from home during the pandemic and the threat from e-commerce. But several of these factors are one-off in nature.


I see value in City Developments, given high-quality assets, excellent execution and an upside of almost +60% using reasonable assumptions.


I’m also bullish on small-cap Bukit Sembawang, which sit on a valuable land bank and has won awards as one of the best property developers in Singapore.



SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-10/Capture_6.PNG' alt='Retail SREIT' />
 </figure>
 <div class='content-caption'>Retail SREIT</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
At over 80 per cent of the population, Singapore has one of the highest Covid-19 vaccination rates globally. Booster shots are also underway as part of efforts towards a progressive full reopening and strategy to treat Covid-19 as endemic.

Sectors such as retail, travel and hospitality remain poised to benefit in the long run as borders reopen progressively and social activities return.

Singapore is working on establishing a vaccinated travel lane with several countries including some European countries, the United States and South Korea. 
In the near term and somewhat physically closer to our homes, suburban malls have demonstrated relevance and resilience amid extended restrictions and Work-From-Home (WFH) trends with exposure to essential trades such as supermarkets and food and beverage outlets. 
There are five S-REITs with exposure to suburban-focused retail malls in Singapore – Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, SPH REIT, Mapletree Commercial Trust, and Lendlease Global Commercial REIT through its 31.8 per cent indirect interest in JEM. These five have averaged 7.6 per cent in total returns in the year-to-date. 
These five have averaged 7.6 per cent in total returns in the year to date (YTD). 
Suburban malls are located near residential neighbourhoods and provide residents with necessities and convenience.

SPH Reit, which owns a portfolio of retail malls in Singapore and Australia, recently reported full-year fiscal year (FY) 2021 results.

Gross revenue increased 14.8 per cent year on year to S$277.2 million and net property income increased 11.4 per cent year on year to S$202.6 million.

Distribution per unit (DPU) for Q4 FY 2021 was 1.58 cents, bringing its full year DPU to 5.40 cents which is 98 per cent higher year on year and 3.6 per cent away from FY 2019's DPU (pre-Covid).

Despite softer leasing sentiments across its portfolio, SPH Reit noted that the defensive nature of suburban malls has supported tenant sales at The Clementi Mall, bringing it to pre-Covid levels and in line with resilient suburban malls' performances.

The Clementi Mall observed a 33 per cent decrease in footfall but a 5 per cent increase in tenant sales, mitigated by its close proximity to residential homes.

CapitaLand Integrated Commercial Trust has a portfolio of suburban retail malls including Bedok Mall, Junction 8, Tampines Mall, and Westgate.

In the Reit's earlier first half (H1) 2021 results announcement, it noted that retail tenant sales continued to outpace shopper traffic, with both improving more than 104 per cent year on year on a low base effect.

H1 2021 tenant sales have recovered to 86.3 per cent against the 2019 average while shopper traffic was at 61.3 per cent against 2019.

Frasers Centrepoint Trust has a portfolio of nine Singapore suburban retail malls.

In its earlier business update, the Reit's tenant sales had recovered to near pre-Covid levels at end 2020 and in early 2021, despite being impacted in the third quarter (Q3) 2021 from April to June due to the tightened control measures during Phase 2 (Heightened Alert).

Mapletree Commercial Trust's VivoCity mall also noted year-on-year improvements in shopper traffic and tenant sales in Q1 FY21/22 but recovery momentum was disrupted by re-tightened Covid-19 measures.

Aside from SPH Reit, the rest of the S-Reits will be reporting quarterly results and business updates over the next few weeks.  REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/china-focused-s-reits-resilient-amid-onshore-property-focus"> </a><a href="https://www.businesstimes.com.sg/companies-markets/suburban-focused-retail-s-reits-average-76-in-total-returns-ytd">read </a>the original version.
</body></html>


      
    
    Retail SREIT


At over 80 per cent of the population, Singapore has one of the highest Covid-19 vaccination rates globally. Booster shots are also underway as part of efforts towards a progressive full reopening and strategy to treat Covid-19 as endemic.

Sectors such as retail, travel and hospitality remain poised to benefit in the long run as borders reopen progressively and social activities return.

Singapore is working on establishing a vaccinated travel lane with several countries including some European countries, the United States and South Korea.  
In the near term and somewhat physically closer to our homes, suburban malls have demonstrated relevance and resilience amid extended restrictions and Work-From-Home (WFH) trends with exposure to essential trades such as supermarkets and food and beverage outlets.  
There are five S-REITs with exposure to suburban-focused retail malls in Singapore – Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, SPH REIT, Mapletree Commercial Trust, and Lendlease Global Commercial REIT through its 31.8 per cent indirect interest in JEM. These five have averaged 7.6 per cent in total returns in the year-to-date.  
These five have averaged 7.6 per cent in total returns in the year to date (YTD).  
Suburban malls are located near residential neighbourhoods and provide residents with necessities and convenience.

SPH Reit, which owns a portfolio of retail malls in Singapore and Australia, recently reported full-year fiscal year (FY) 2021 results.

Gross revenue increased 14.8 per cent year on year to S$277.2 million and net property income increased 11.4 per cent year on year to S$202.6 million.

Distribution per unit (DPU) for Q4 FY 2021 was 1.58 cents, bringing its full year DPU to 5.40 cents which is 98 per cent higher year on year and 3.6 per cent away from FY 2019's DPU (pre-Covid).

Despite softer leasing sentiments across its portfolio, SPH Reit noted that the defensive nature of suburban malls has supported tenant sales at The Clementi Mall, bringing it to pre-Covid levels and in line with resilient suburban malls' performances.

The Clementi Mall observed a 33 per cent decrease in footfall but a 5 per cent increase in tenant sales, mitigated by its close proximity to residential homes.

CapitaLand Integrated Commercial Trust has a portfolio of suburban retail malls including Bedok Mall, Junction 8, Tampines Mall, and Westgate.

In the Reit's earlier first half (H1) 2021 results announcement, it noted that retail tenant sales continued to outpace shopper traffic, with both improving more than 104 per cent year on year on a low base effect.

H1 2021 tenant sales have recovered to 86.3 per cent against the 2019 average while shopper traffic was at 61.3 per cent against 2019.

Frasers Centrepoint Trust has a portfolio of nine Singapore suburban retail malls.

In its earlier business update, the Reit's tenant sales had recovered to near pre-Covid levels at end 2020 and in early 2021, despite being impacted in the third quarter (Q3) 2021 from April to June due to the tightened control measures during Phase 2 (Heightened Alert).

Mapletree Commercial Trust's VivoCity mall also noted year-on-year improvements in shopper traffic and tenant sales in Q1 FY21/22 but recovery momentum was disrupted by re-tightened Covid-19 measures.

Aside from SPH Reit, the rest of the S-Reits will be reporting quarterly results and business updates over the next few weeks.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Suburban-focused retail S-Reits average 7.6% in total returns YTD

Singapore

Frasers Property Limited provides real estate ownership and development services. The Company engages in the development of land, housing projects, apartments, as well as commercial, industrial, and retail properties. Frasers Property serves customers globally.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Frasers Property Ltd (FPL SP)

ASEAN Builder's Scoop (25Jan22) - KDCREIT Rising Portfolio Valuations

PREIT consistently pricey as results stable; CICT sells JCube at <4% yield; FLT divests CSE at ~2.5% yield; YLLG sells out Shanghai project; SPALI...

SCCM Asia Research

ASEAN Builder's Scoop (26Nov21) - FPL Provides Loan to China JV Partner

FPL provides loan to China JV partner; YLLG 100% take-up in Shanghai project; Phils Cebu office vacancy to expand; ALLHC seals deal with Newbie...

SCCM Asia Research

ASEAN Builder's Scoop (25Nov21) - MAGIC Settles FW's Insurance Claims

MAGIC settles FW's insurance claims; New bonus GFA incentive scheme; FPL cancels VN acquisition; SASSR new CFO; SPSB likely exceeds 2021 sales...

SCCM Asia Research

Singapore Residential Property

Jefferies strategist Chris Wood made an interesting comment in his 4Q21 Asia Maxima report. He expressed a bullish view on Singaporean residential...

Asian Century Stocks

REIT Watch - Suburban-focused retail S-Reits average 7.6% in total returns YTD

At over 80 per cent of the population, Singapore has one of the highest Covid-19 vaccination rates globally. Booster shots are...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)