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

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/ascendas-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:39" rel="noopener">Ascendas Real Estate Investment Trust (AREIT SP)</a> to divest three properties in Australia for ~4.1% NPI yield (BUY; TP S$3.55/unit)</h3>AREIT will divest three logistics properties in Australia for a total of AUD125.1m (S$128.7m). The sale price is ~16.8% higher than the total market valuations of the properties of AUD101.1m as at 31Dec20. The divestments are expected to be completed by 3Q21. AREIT had entered into two separate agreements with unrelated purchasers for the sale of two logistics properties (82 Noosa Street and 62 Stradbroke Street) in Brisbane; and one logistics property (1314 Ferntree Gully Road) in Melbourne. Assuming the divestments were completed on 1Jan20, the annualised proforma impact on AREIT’s NPI would have been a decrease of S$5.1m and DPU would have fallen by S$0.075c for FY20. Net proceeds after divestment costs are expected to be S$124.0m. If the net proceeds were used to repay AREIT’s borrowings as at 31Mar, its gearing will be reduced from 38% to around 37.5%. Post-divestment, AREIT will own 95 properties in Singapore, 34 properties in Australia, 30 properties in the US and 49 properties in the UK/Europe. <table class="table table-striped"><tbody><tr><td style="width: 59.3438px;">Asset</td><td style="width: 48.4375px;">Asset Type</td><td style="width: 45.9375px;">FY20 Gross Revenue</td><td style="width: 59.5781px;">NLA as at 31Dec20</td><td style="width: 59.5625px;">Occupancy as at 31Dec20</td><td style="width: 60.6406px;">Acquisition Date</td><td style="width: 60.6406px;">Acquisition Price</td><td style="width: 101.734px;">Valuation as at 31Dec20(A$1.000:S$0.980)</td><td style="width: 94.9219px;">Sale Price(A$1.00:S$1.029)</td><td style="width: 63.7188px;">Buyer</td></tr><tr><td style="width: 59.3438px;">82 Noosa Street, Brisbane, Australia</td><td style="width: 48.4375px;">Logistics</td><td style="width: 45.9375px;">S$3.3m</td><td style="width: 59.5781px;">38,000sqm</td><td style="width: 59.5625px;">100%</td><td style="width: 60.6406px;">Oct15</td><td style="width: 60.6406px;">S$66.0m</td><td style="width: 101.734px;">A$53.0m (S$51.9m)</td><td rowspan="2" style="width: 94.9219px;">A$101.6m (S$104.5m)or A$1,624psqm</td><td rowspan="2" style="width: 63.7188px;">SIRE (Strategic Industrial Real Estate), an Arrow Capital Partners vehicle in cooperation with Altis Property Partners</td></tr><tr><td style="width: 59.3438px;">62 Stradbroke Street, Brisbane, Australia</td><td style="width: 48.4375px;">Logistics</td><td style="width: 45.9375px;">S$2.6m</td><td style="width: 59.5781px;">24,555sqm</td><td style="width: 59.5625px;">100%</td><td style="width: 60.6406px;">Oct15</td><td style="width: 60.6406px;">S$35.9m</td><td style="width: 101.734px;">A$37.4m (S$36.7m)</td></tr><tr><td style="width: 59.3438px;">1314 Ferntree Gully Road, Melbourne, Australia</td><td style="width: 48.4375px;">Logistics</td><td style="width: 45.9375px;">S$0.5m</td><td style="width: 59.5781px;">16,134sqm</td><td style="width: 59.5625px;">100%</td><td style="width: 60.6406px;">Jun18</td><td style="width: 60.6406px;">S$16.4m</td><td style="width: 101.734px;">A$16.6m (S$16.3m)</td><td style="width: 94.9219px;">A$23.5m (S$24.2m)or A$1,500psqm</td><td style="width: 63.7188px;">China Tube Pty Ltd and Haelram Pty Ltd</td></tr><tr><td colspan="2" style="width: 128.781px;">TOTAL</td><td style="width: 45.9375px;">S$6.4m</td><td style="width: 59.5781px;"> </td><td style="width: 59.5625px;"> </td><td style="width: 60.6406px;"> </td><td style="width: 60.6406px;">S$118.3m</td><td style="width: 101.734px;">A$107.1m (S$104.9m)</td><td style="width: 94.9219px;">A$125.1m (S$128.7m)</td><td style="width: 63.7188px;"> </td></tr></tbody></table>Comments:<ul><li>Taking reference from FY20 AUS Portfolio NPI Margin of 79.0%, the blended NPI yield based on S$128.7m Sale Price would be ~3.9%. Note that comparing the exchange rate adopted for Sale Price vs. Valuation as at 31Dec20, the AUD has strengthen ~5%. Using the 31Dec20 exchange rate, the blended NPI yield would be ~4.1%. Together with its recent divestment of 11 Changi North Way (at S$16.0m), AREIT would have a total divestment proceeds S$144.7m and booking total S$33.8m divestment gain</li><li>Moving forward, we expect AREIT’s DPU to be propelled by both organic and inorganic growth while it reconstitute its portfolio. Notwithstanding the S$1.19bn worth of acquisitions in 1Q21 (estimated to be 1.5% DPU accretive) and the acquisition of remaining 75% of Galaxis (estimated to be 0.40% DPU accretive), the new BTS business park development for Grab as well as UBIX redevelopment (formerly 25 &amp; 27 Ubi Road 4) should start contributing by 2H21 (expected to add S$14.2m to NPI on a full-year basis at 6.4%-7.5% NPI yields)</li><li>We believe AREIT remains in a virtuous cycle of growth. The S$420.0m EFR exercise in 4May21 as well as repayment debt utilizing the divestment proceeds should lower its gearing. With greater financial flexibility, relatively low cost of equity and low interest rate environment, AREIT has further scope for inorganic growth. We have a BUY rating with TP of S$3.55/Unit.</li></ul>

SingaporeAscendas Real Estate Investment Trust (AREIT SP) to divest three properties in Australia for ~4.1% NPI yield (BUY; TP S$3.55/unit)AREIT will divest three logistics properties in Australia for a total of AUD125.1m (S$128.7m). The sale price is ~16.8% higher than the total market valuations of the properties of AUD101.1m as at 31Dec20. The divestments are expected to be completed by 3Q21. AREIT had entered into two separate agreements with unrelated purchasers for the sale of two logistics properties (82 Noosa Street and 62 Stradbroke Street) in Brisbane; and one logistics property (1314 Ferntree Gully Road) in Melbourne. Assuming the divestments were completed on 1Jan20, the annualised proforma impact on AREIT’s NPI would have been a decrease of S$5.1m and DPU would have fallen by S$0.075c for FY20. Net proceeds after divestment costs are expected to be S$124.0m. If the net proceeds were used to repay AREIT’s borrowings as at 31Mar, its gearing will be reduced from 38% to around 37.5%. Post-divestment, AREIT will own 95 properties in Singapore, 34 properties in Australia, 30 properties in the US and 49 properties in the UK/Europe. AssetAsset TypeFY20 Gross RevenueNLA as at 31Dec20Occupancy as at 31Dec20Acquisition DateAcquisition PriceValuation as at 31Dec20(A$1.000:S$0.980)Sale Price(A$1.00:S$1.029)Buyer82 Noosa Street, Brisbane, AustraliaLogisticsS$3.3m38,000sqm100%Oct15S$66.0mA$53.0m (S$51.9m)A$101.6m (S$104.5m)or A$1,624psqmSIRE (Strategic Industrial Real Estate), an Arrow Capital Partners vehicle in cooperation with Altis Property Partners62 Stradbroke Street, Brisbane, AustraliaLogisticsS$2.6m24,555sqm100%Oct15S$35.9mA$37.4m (S$36.7m)1314 Ferntree Gully Road, Melbourne, AustraliaLogisticsS$0.5m16,134sqm100%Jun18S$16.4mA$16.6m (S$16.3m)A$23.5m (S$24.2m)or A$1,500psqmChina Tube Pty Ltd and Haelram Pty LtdTOTALS$6.4m   S$118.3mA$107.1m (S$104.9m)A$125.1m (S$128.7m) Comments:Taking reference from FY20 AUS Portfolio NPI Margin of 79.0%, the blended NPI yield based on S$128.7m Sale Price would be ~3.9%. Note that comparing the exchange rate adopted for Sale Price vs. Valuation as at 31Dec20, the AUD has strengthen ~5%. Using the 31Dec20 exchange rate, the blended NPI yield would be ~4.1%. Together with its recent divestment of 11 Changi North Way (at S$16.0m), AREIT would have a total divestment proceeds S$144.7m and booking total S$33.8m divestment gainMoving forward, we expect AREIT’s DPU to be propelled by both organic and inorganic growth while it reconstitute its portfolio. Notwithstanding the S$1.19bn worth of acquisitions in 1Q21 (estimated to be 1.5% DPU accretive) and the acquisition of remaining 75% of Galaxis (estimated to be 0.40% DPU accretive), the new BTS business park development for Grab as well as UBIX redevelopment (formerly 25 &amp; 27 Ubi Road 4) should start contributing by 2H21 (expected to add S$14.2m to NPI on a full-year basis at 6.4%-7.5% NPI yields)We believe AREIT remains in a virtuous cycle of growth. The S$420.0m EFR exercise in 4May21 as well as repayment debt utilizing the divestment proceeds should lower its gearing. With greater financial flexibility, relatively low cost of equity and low interest rate environment, AREIT has further scope for inorganic growth. We have a BUY rating with TP of S$3.55/Unit.

ASEAN Builder's Scoop (4Jun21) - AREIT Divesting 3 AUS Props for ~4.1% Yield

<h2>Singapore</h2><h3><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> to acquire HP Tokyo HQ building for S$474.7m; DPU accretive by +2.4%</h3><ul><li>MAGIC has entered into an agreement to buy 98.47% effective interest in a freehold single-tenanted office building in Tokyo at an agreed property value of JPY38.8bn (S$474.7m). The property is now used as Hewlett-Packard Japan headquarters from Hulic Co, an unrelated third party vendor. The balance effective interest of 1.53% in the property will be held by Mapletree Investments Japan Kabushiki Kaisha, an indirect wholly-owned subsidiary of Mapletree Investments, MAGIC’s sponsor</li><li>The property is 100% leased to Hewlett-Packard Japan and has a lease expiry of 8.8 years. The AUM of the enlarged portfolio will stand at S$8.4bn, or an increase of 6% from existing portfolio of S$7.9bn. Contribution from Japan will increase from 16.6% to 21.3% by AUM, or an increase from 22.4% to 26.7% by NPI</li><li>MAGIC intends to finance the purchase and relevant costs through a combination of debt financing and issuance of perpetual securities. The estimated NPI yield is 3.7%. On a FY21 pro-forma basis, the acquisition is expected to be DPU accretive by +2.4%</li><li>Aggregate leverage post acquisition is expected to be 41.9%, up marginally from 41.5%. Completion is subject to the conditions being fulfilled and is expected to take place by 30Jun.</li></ul><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/210/110/original/image003.png?1622425518" class="editor-image img-responsive" data-smartkarma-image-id="210110"></figure></section>

SingaporeMapletree North Asia Commercial Trust (MAGIC SP) to acquire HP Tokyo HQ building for S$474.7m; DPU accretive by +2.4%MAGIC has entered into an agreement to buy 98.47% effective interest in a freehold single-tenanted office building in Tokyo at an agreed property value of JPY38.8bn (S$474.7m). The property is now used as Hewlett-Packard Japan headquarters from Hulic Co, an unrelated third party vendor. The balance effective interest of 1.53% in the property will be held by Mapletree Investments Japan Kabushiki Kaisha, an indirect wholly-owned subsidiary of Mapletree Investments, MAGIC’s sponsorThe property is 100% leased to Hewlett-Packard Japan and has a lease expiry of 8.8 years. The AUM of the enlarged portfolio will stand at S$8.4bn, or an increase of 6% from existing portfolio of S$7.9bn. Contribution from Japan will increase from 16.6% to 21.3% by AUM, or an increase from 22.4% to 26.7% by NPIMAGIC intends to finance the purchase and relevant costs through a combination of debt financing and issuance of perpetual securities. The estimated NPI yield is 3.7%. On a FY21 pro-forma basis, the acquisition is expected to be DPU accretive by +2.4%Aggregate leverage post acquisition is expected to be 41.9%, up marginally from 41.5%. Completion is subject to the conditions being fulfilled and is expected to take place by 30Jun.

ASEAN Builder's Scoop (31May21) - MAGIC Acquires HP Tokyo HQ Building

<h2>Singapore</h2>
<h3>
<a href="https://www.smartkarma.com/entities/eagle-hospitality-trust" target="_blank" data-smartkarma-citation="entities:28059" rel="noopener">Eagle Hospitality Trust (EAGLEHT SP)</a> five properties put on auction received qualified bids</h3>
Five out of 15 properties put up for auction have received qualified bids in the second bid round for EAGLEHT Chapter 11 assets held on 20May. The DBS trustee said its Chapter 11 entities received qualified bids for Sheraton Denver Tech Center, Four Points by Sheraton San Jose Airport, Embassy Suites by Hilton Anaheim North, Doubletree by Hilton Salt Lake City Airport, and Hilton Atlanta Northeast. The auction resulted in a US$24.8m net increase in the aggregate consideration for EAGLEHT's auctioned properties. A stalking-horse bidder, Madison Phoenix LLC, an affiliate of Monarch Alternative Capital, emerged successful for its bid of nine non-auctioned properties with an aggregate purchase price of US$326.5m. This is in accordance with the terms of the stalking-horse agreement between entities of EAGLEHT and the bidder, which effectively sets an opening price or price floor to protect the company selling the assets at low bids. Properties remaining in EAGLEHT's portfolio upon approval of the sale would comprise Queen Mary Long Beach, Delta Woodbridge, Hilton Houston Galleria Area and Crowne Plaza Dallas Near Galleria-Addison.

Singapore

Eagle Hospitality Trust (EAGLEHT SP) five properties put on auction received qualified bids
Five out of 15 properties put up for auction have received qualified bids in the second bid round for EAGLEHT Chapter 11 assets held on 20May. The DBS trustee said its Chapter 11 entities received qualified bids for Sheraton Denver Tech Center, Four Points by Sheraton San Jose Airport, Embassy Suites by Hilton Anaheim North, Doubletree by Hilton Salt Lake City Airport, and Hilton Atlanta Northeast. The auction resulted in a US$24.8m net increase in the aggregate consideration for EAGLEHT's auctioned properties. A stalking-horse bidder, Madison Phoenix LLC, an affiliate of Monarch Alternative Capital, emerged successful for its bid of nine non-auctioned properties with an aggregate purchase price of US$326.5m. This is in accordance with the terms of the stalking-horse agreement between entities of EAGLEHT and the bidder, which effectively sets an opening price or price floor to protect the company selling the assets at low bids. Properties remaining in EAGLEHT's portfolio upon approval of the sale would comprise Queen Mary Long Beach, Delta Woodbridge, Hilton Houston Galleria Area and Crowne Plaza Dallas Near Galleria-Addison.

ASEAN Builder's Scoop (25May21) - EAGLEHT Properties Received Qualified Bids

<h2>Singapore</h2>
<h3>
<a href="https://www.smartkarma.com/entities/city-developments-ltd" target="_blank" data-smartkarma-citation="entities:57" rel="noopener">City Developments (CIT SP)</a> 1Q21 Business Updates – SG / AUS residential the bright spot; Gradual reopening of hotels should lift sentiment</h3>
<ul>
<li>Property Development: In Singapore, CIT sold 319 units with total sales value of S$513.6m in 1Q21, +72% YoY in units sold and +84.7% YoY in total sales value. Amber Park performed strongly with sales of around 100 units</li>
<li>In Feb, The Tapestry obtained its TOP (all 861 units are fully sold). Meanwhile, construction activities have resumed at all ongoing development projects. However, due to labour shortage which has affected the entire industry, activities have not returned to pre-COVID levels. CIT does not have any projects due for completion in 2021. To date, 324 units (60%) of Irwell Hill Residences have been sold. Acquisition of site at Northumberland Road will also be developed into a mixed-use project with 408 residential apartments of up to 23 storeys and commercial retail space on the ground floor</li>
<li>Meanwhile in Australia, fuelled by domestic demand, sales increased across CIT’s launched project. The Marker in Melbourne has pre-sold 80% of its 198 units and construction is on track to complete in 2022, while Brickworks Park in Brisbane has achieved pre-sales for 44% of the 132 released units. Waterbrook Bowral, a luxury retirement project in New South Wales that the Group has collaborated with Waterbrook Lifestyle Resorts on, has pre-sold 92% of the 77 townhouses launched and construction is in progress</li>
<li>Investment Properties: 1Q21 committed occupancy for SG office remains resilient at 91.4%, above island-wide occupancy of 88.1%, with positive rental reversion. SG retail portfolio continues to face headwinds. Footfall in the malls for the quarter has been relatively stable, though it is still lower than pre COVID-19 levels. Despite lower footfall, gross turnover sales (GTO) of CIT malls remain strong with 1Q21 GTO registering an increase of over 5% YoY compared to 1Q20 levels. As of 31Mar21, committed occupancy for retail space remains strong at 92.1%, above island-wide occupancy of 91.5%. In Thailand, since Mar21, part of Jungceylon, the Group’s major retail mall in Phuket has been temporarily closed to reduce operational cost. In China, while tenants remain cautious and slow to commit, office leasing demand is gradually returning. In Suzhou, Hong Leong City Center’s Grade-A office tower is now 85% occupied. In Japan, residential rental apartment portfolio within Osaka and Yokohama continues to show stable occupancy and healthy leasing demand</li>
<li>Hotel Operations: 1Q21 global occupancy dropped to 36.8% (1Q20: 52.5%) and global RevPAR decreased by 51.7% YoY to S$44.6 (1Q2020: S$92.4). Singapore continues to face challenges in 2021 until border restrictions are lifted. The UK was severely impacted, particularly in London. The US saw the country gradually reopening with the vaccine roll-out. New York and regional hotels achieved stronger occupancies in 1Q21 particularly with the weekend business. CIT’s M Social New York property in Times Square is expected to open in 2Q21. A community outbreak in Feb21 in Auckland led to lockdowns in New Zealand, which disrupted business and leisure travel in NZ over most of Feb and the early part of Mar</li>
<li>In Feb21, CIT acquired a 55% effective interest in Shenzhen Longgang Tusincere Tech Park in China’s high-growth Silicon Valley from its China JV, Sincere Property Group, and two entities of China Ping An for RMB850m (~S$174m). CIT now holds an 84.6% equity interest in the holding company, Shenzhen Tusincere Technology Park Development, which holds a 65% interest in the project. The remaining 35% interest in the project is held by the Shenzhen Longgang District state-owned enterprise</li>
<li>Net gearing ratio (factoring in revaluation surplus from investment properties) stands at 65% with interest cover at 1.7 times. Cash reserves stands at S$3.4bn with cash and available undrawn committed bank facilities amounts to a total S$5.5bn</li>
<li>CIT currently trades at 19.8x FY21E P/E and 0.8x P/B.  </li>
</ul>

Singapore

City Developments (CIT SP) 1Q21 Business Updates – SG / AUS residential the bright spot; Gradual reopening of hotels should lift sentiment

Property Development: In Singapore, CIT sold 319 units with total sales value of S$513.6m in 1Q21, +72% YoY in units sold and +84.7% YoY in total sales value. Amber Park performed strongly with sales of around 100 units
In Feb, The Tapestry obtained its TOP (all 861 units are fully sold). Meanwhile, construction activities have resumed at all ongoing development projects. However, due to labour shortage which has affected the entire industry, activities have not returned to pre-COVID levels. CIT does not have any projects due for completion in 2021. To date, 324 units (60%) of Irwell Hill Residences have been sold. Acquisition of site at Northumberland Road will also be developed into a mixed-use project with 408 residential apartments of up to 23 storeys and commercial retail space on the ground floor
Meanwhile in Australia, fuelled by domestic demand, sales increased across CIT’s launched project. The Marker in Melbourne has pre-sold 80% of its 198 units and construction is on track to complete in 2022, while Brickworks Park in Brisbane has achieved pre-sales for 44% of the 132 released units. Waterbrook Bowral, a luxury retirement project in New South Wales that the Group has collaborated with Waterbrook Lifestyle Resorts on, has pre-sold 92% of the 77 townhouses launched and construction is in progress
Investment Properties: 1Q21 committed occupancy for SG office remains resilient at 91.4%, above island-wide occupancy of 88.1%, with positive rental reversion. SG retail portfolio continues to face headwinds. Footfall in the malls for the quarter has been relatively stable, though it is still lower than pre COVID-19 levels. Despite lower footfall, gross turnover sales (GTO) of CIT malls remain strong with 1Q21 GTO registering an increase of over 5% YoY compared to 1Q20 levels. As of 31Mar21, committed occupancy for retail space remains strong at 92.1%, above island-wide occupancy of 91.5%. In Thailand, since Mar21, part of Jungceylon, the Group’s major retail mall in Phuket has been temporarily closed to reduce operational cost. In China, while tenants remain cautious and slow to commit, office leasing demand is gradually returning. In Suzhou, Hong Leong City Center’s Grade-A office tower is now 85% occupied. In Japan, residential rental apartment portfolio within Osaka and Yokohama continues to show stable occupancy and healthy leasing demand
Hotel Operations: 1Q21 global occupancy dropped to 36.8% (1Q20: 52.5%) and global RevPAR decreased by 51.7% YoY to S$44.6 (1Q2020: S$92.4). Singapore continues to face challenges in 2021 until border restrictions are lifted. The UK was severely impacted, particularly in London. The US saw the country gradually reopening with the vaccine roll-out. New York and regional hotels achieved stronger occupancies in 1Q21 particularly with the weekend business. CIT’s M Social New York property in Times Square is expected to open in 2Q21. A community outbreak in Feb21 in Auckland led to lockdowns in New Zealand, which disrupted business and leisure travel in NZ over most of Feb and the early part of Mar
In Feb21, CIT acquired a 55% effective interest in Shenzhen Longgang Tusincere Tech Park in China’s high-growth Silicon Valley from its China JV, Sincere Property Group, and two entities of China Ping An for RMB850m (~S$174m). CIT now holds an 84.6% equity interest in the holding company, Shenzhen Tusincere Technology Park Development, which holds a 65% interest in the project. The remaining 35% interest in the project is held by the Shenzhen Longgang District state-owned enterprise
Net gearing ratio (factoring in revaluation surplus from investment properties) stands at 65% with interest cover at 1.7 times. Cash reserves stands at S$3.4bn with cash and available undrawn committed bank facilities amounts to a total S$5.5bn
CIT currently trades at 19.8x FY21E P/E and 0.8x P/B.  


ASEAN Builder's Scoop (20May21) - CIT resi the bright spot

<h2>Singapore</h2><h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3><table class="table table-striped"><tbody><tr><td style="width: 141.25pt;"> </td><td style="width: 141.2pt;">PRIME (US$)</td><td style="width: 141.2pt;">KORE (US$)</td><td style="width: 141.2pt;">MUST (US$)</td></tr><tr><td style="width: 141.25pt;">Period</td><td style="width: 141.2pt;">1Q21</td><td style="width: 141.2pt;">1Q21</td><td style="width: 141.2pt;">1Q21</td></tr><tr><td style="width: 141.25pt;">Gross Revenue (S$ m)</td><td style="width: 141.2pt;">35.9 (+2.5% YoY)</td><td style="width: 141.2pt;">34.6 (-2.1% YoY)</td><td style="width: 141.2pt;">NA</td></tr><tr><td style="width: 141.25pt;">NPI (S$ m)</td><td style="width: 141.2pt;">23.0 (-2.0% YoY)</td><td style="width: 141.2pt;">20.4 (-2.8% YoY)</td><td style="width: 141.2pt;">NA</td></tr><tr><td style="width: 141.25pt;">DPU (S$ c)</td><td style="width: 141.2pt;">Not Disclosed</td><td style="width: 141.2pt;">Not Disclosed</td><td style="width: 141.2pt;">NA</td></tr><tr><td style="width: 141.25pt;">NAV per Unit (S$)</td><td style="width: 141.2pt;">Not Disclosed</td><td style="width: 141.2pt;">Not Disclosed</td><td style="width: 141.2pt;">0.730</td></tr><tr><td style="width: 141.25pt;">P/B (x)</td><td style="width: 141.2pt;">0.99(Based on 4Q20 NAV)</td><td style="width: 141.2pt;">0.90 (Based on 4Q20 NAV)</td><td style="width: 141.2pt;">1.030 (Based on 4Q20 NAV)</td></tr><tr><td style="width: 141.25pt;">Occupancy (%)</td><td style="width: 141.2pt;">91.7</td><td style="width: 141.2pt;">91.6</td><td style="width: 141.2pt;">92.0</td></tr><tr><td style="width: 141.25pt;">Reversion (%)</td><td style="width: 141.2pt;">8.5</td><td style="width: 141.2pt;">5.7</td><td style="width: 141.2pt;">2.1</td></tr><tr><td style="width: 141.25pt;">Gearing (%)</td><td style="width: 141.2pt;">33.6</td><td style="width: 141.2pt;">37.5</td><td style="width: 141.2pt;">41.3</td></tr><tr><td style="width: 141.25pt;">Cost of Debt (%)</td><td style="width: 141.2pt;">2.8</td><td style="width: 141.2pt;">2.82</td><td style="width: 141.2pt;">3.18</td></tr><tr><td style="width: 141.25pt;">1 Yr Fwd Yield (%)</td><td style="width: 141.2pt;">8.24</td><td style="width: 141.2pt;">8.3</td><td style="width: 141.2pt;">8.00</td></tr><tr><td style="width: 141.25pt;">Debt Hedged (%)</td><td style="width: 141.2pt;">90.0</td><td style="width: 141.2pt;">84.7</td><td style="width: 141.2pt;">NA</td></tr><tr><td style="width: 141.25pt;">Target Price</td><td style="width: 141.2pt;">NA</td><td style="width: 141.2pt;">NA</td><td style="width: 141.2pt;">NA</td></tr><tr><td style="width: 141.25pt;">Rating</td><td style="width: 141.2pt;">NA</td><td style="width: 141.2pt;">NA</td><td style="width: 141.2pt;">NA</td></tr></tbody></table><h3><a href="https://www.smartkarma.com/entities/prime-us-reit" target="_blank" data-smartkarma-citation="entities:28144" rel="noopener">Prime US REIT (PRIME SP)</a> 1Q21 Business Update – Robust operations metrics; Trading at an attractive 8+% USD yield  </h3><ul><li>1Q21 revenue and NPI came in +2.5% YoY and -2.0% YoY, respectively, to US$35.9m (25.2% BB est) and US$23.5m (26.7% BB est). 1Q21 DI came in -1.2% YoY at US$17.6m, which benefitted from lower interest cost. 1Q21 DPU was undisclosed</li><li>Leasing momentum remained robust with a positive rental reversion of +8.5% in 1Q21 (vs +8.7% in 4Q20 and +8.9% in 3Q20). Focusing on long-term leases – 57,647sqft of long-term leases were executed in 1Q21 at a rental reversion of +9.5%. Below-market portfolio in place rents (by 6.5%) also provide a buffer for rental reversion potential</li><li>Overall portfolio committed occupancy fell to 91.7% in 1Q21 (vs. 92.4% in 4Q20 and 92.6% in 3Q20). PRIME has ~100% of cash rental income with built-in rental escalations averaging over +2% pa. Portfolio occupancy still well above Class-A office average of 84.3%. Rent collections remained robust at 99% with minimal rent concessions. Portfolio WALE stood at 4.3%</li><li>Portfolio gearing stands at 33.8% (vs. 33.5% in 4Q20 and 32.7% in 3Q20) with average cost of debt of 2.8% pa. (vs. 2.7% in 4Q20 and 2.7% in 3Q20) and 90.0% of debt hedged</li><li>PRIME currently trades at 8.24% FY21E yield and 0.99x P/B.</li></ul>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached) PRIME (US$)KORE (US$)MUST (US$)Period1Q211Q211Q21Gross Revenue (S$ m)35.9 (+2.5% YoY)34.6 (-2.1% YoY)NANPI (S$ m)23.0 (-2.0% YoY)20.4 (-2.8% YoY)NADPU (S$ c)Not DisclosedNot DisclosedNANAV per Unit (S$)Not DisclosedNot Disclosed0.730P/B (x)0.99(Based on 4Q20 NAV)0.90 (Based on 4Q20 NAV)1.030 (Based on 4Q20 NAV)Occupancy (%)91.791.692.0Reversion (%)8.55.72.1Gearing (%)33.637.541.3Cost of Debt (%)2.82.823.181 Yr Fwd Yield (%)8.248.38.00Debt Hedged (%)90.084.7NATarget PriceNANANARatingNANANAPrime US REIT (PRIME SP) 1Q21 Business Update – Robust operations metrics; Trading at an attractive 8+% USD yield  1Q21 revenue and NPI came in +2.5% YoY and -2.0% YoY, respectively, to US$35.9m (25.2% BB est) and US$23.5m (26.7% BB est). 1Q21 DI came in -1.2% YoY at US$17.6m, which benefitted from lower interest cost. 1Q21 DPU was undisclosedLeasing momentum remained robust with a positive rental reversion of +8.5% in 1Q21 (vs +8.7% in 4Q20 and +8.9% in 3Q20). Focusing on long-term leases – 57,647sqft of long-term leases were executed in 1Q21 at a rental reversion of +9.5%. Below-market portfolio in place rents (by 6.5%) also provide a buffer for rental reversion potentialOverall portfolio committed occupancy fell to 91.7% in 1Q21 (vs. 92.4% in 4Q20 and 92.6% in 3Q20). PRIME has ~100% of cash rental income with built-in rental escalations averaging over +2% pa. Portfolio occupancy still well above Class-A office average of 84.3%. Rent collections remained robust at 99% with minimal rent concessions. Portfolio WALE stood at 4.3%Portfolio gearing stands at 33.8% (vs. 33.5% in 4Q20 and 32.7% in 3Q20) with average cost of debt of 2.8% pa. (vs. 2.7% in 4Q20 and 2.7% in 3Q20) and 90.0% of debt hedgedPRIME currently trades at 8.24% FY21E yield and 0.99x P/B.

ASEAN Builder's Scoop (19May21) - PRIME robust operations metrics

Singapore

City Developments Limited (CDL) is a Singaporean multinational real estate operating company. It develops, owns, and manages a diversified portfolio of residential, commercial, and hospitality properties, including offices, hotels, serviced apartments, shopping malls, and integrated developments. CDL was founded on September 7, 1963, and is headquartered in Singapore.

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City Developments (CIT SP)

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