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/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>
<p>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.</p>

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

External broker reports(aggregated public sources), Hong Leong Investment Bank Berhad

Hong Leong Investment Bank Berhad

External broker reports(aggregated public sources)

Hong Leong Investment Bank Berhad operates as an investment banking company. The Company provides debt and equity funding, private debt securities issuance, merger and acquisitions, initial public offerings, corporate restructuring, and stockbroking services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Hektar Real Estate Investment Trust / Equity Bottom-Up

Hektar Real Estate Investment Trust (HEKT MK)

<ul><li>Hektar REIT has proposed to acquire a light industrial asset in Bayan Lepas for RM30m, funded through a mix of debt and cash.</li><li>We are positive on this acquisition, given Hektar’s strategy to diversify its portfolio.</li><li>The acquisition is expected to result in a 2.2%/4.3% uplift in distribution income for FY25/26, prompting us to raise our profit forecasts accordingly</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Hektar REIT has proposed to acquire a light industrial asset in Bayan Lepas for RM30m, funded through a mix of debt and cash.We are positive on this acquisition, given Hektar’s strategy to diversify its portfolio.The acquisition is expected to result in a 2.2%/4.3% uplift in distribution income for FY25/26, prompting us to raise our profit forecasts accordinglyContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hektar REIT - Diversifying into Industrial Assets

<ul><li>Hektar’s 1Q24 core net profit came in at RM5.1m (+1.4x QoQ, -44.8% YoY). This came in below ours and consensus estimates at 16% of full year forecast.</li><li>The negative deviation was due to higher-than-expected finance costs. In view of the results shortfall, we cut our FY24/25 forecasts by -5.4%/-5.2%.</li><li>We also introduce FY26 forecasts. Besides, the increase in units in circulation after its private placement has resulted in our forecasted FY24/25 EPU to decline by -22%/-23% post earnings cut due to dilution. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Hektar’s 1Q24 core net profit came in at RM5.1m (+1.4x QoQ, -44.8% YoY). This came in below ours and consensus estimates at 16% of full year forecast.The negative deviation was due to higher-than-expected finance costs. In view of the results shortfall, we cut our FY24/25 forecasts by -5.4%/-5.2%.We also introduce FY26 forecasts. Besides, the increase in units in circulation after its private placement has resulted in our forecasted FY24/25 EPU to decline by -22%/-23% post earnings cut due to dilution. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Hektar’s 4Q23 results came in at RM2.1m (-69.1% QoQ, -17.9% YoY), bringing FY23 sum to RM25.1m (-29.3% YoY).</li><li>We deem the results to be below ours and consensus expectations at 83% and 79% respectively.</li><li>The negative deviation was due to higher trust and finance expenses.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Hektar’s 4Q23 results came in at RM2.1m (-69.1% QoQ, -17.9% YoY), bringing FY23 sum to RM25.1m (-29.3% YoY).We deem the results to be below ours and consensus expectations at 83% and 79% respectively.The negative deviation was due to higher trust and finance expenses.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Hektar’s 3Q23 results came in at RM6.8m (-2.0% QoQ, -62.9% YoY), bringing 9M23 sum to RM23m (-39.2% YoY).</li><li>We deem the results to be within ours but below consensus expectations at 76.2% and 66.1% respectively.</li><li>Despite increased occupancy rate, tenant sales could stay muted as consumers remain prudent on discretionary spending.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Hektar’s 3Q23 results came in at RM6.8m (-2.0% QoQ, -62.9% YoY), bringing 9M23 sum to RM23m (-39.2% YoY).We deem the results to be within ours but below consensus expectations at 76.2% and 66.1% respectively.Despite increased occupancy rate, tenant sales could stay muted as consumers remain prudent on discretionary spending.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Malaysia

Hektar Real Estate Investment Trust acquires and invests in income producing real estate in Malaysia.

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Hektar Real Estate Investment Trust (HEKT MK)

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

EAGLEHT properties received qualified bids; CIT warns of cooling measures; UEMS 1Q21 net loss narrows; ECW achieved 70% FY21 sales target; Phuket...

SCCM Asia Research

Hektar REIT - Diversifying into Industrial Assets

Hektar REIT has proposed to acquire a light industrial asset in Bayan Lepas for RM30m, funded through a mix of debt and cash.

Hong Leong Investment Bank Berhad

Hektar REIT - Impacted by Higher Costs

Hektar’s 1Q24 core net profit came in at RM5.1m (+1.4x QoQ, -44.8% YoY). This came in below ours and consensus estimates at 16% of full year forecast.

Hong Leong Investment Bank Berhad

Hektar REIT - Weaker End to FY23

We deem the results to be below ours and consensus expectations at 83% and 79% respectively. The negative deviation was due to higher trust and...

Hong Leong Investment Bank Berhad

Hektar REI - Results in Line

Hektar’s 3Q23 results came in at RM6.8m (-2.0% QoQ, -62.9% YoY), bringing 9M23 sum to RM23m (-39.2% YoY). We deem the results to be within ours but...

Hong Leong Investment Bank Berhad

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