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. 

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Equity Bottom-Up

Hektar Real Estate Investment Trust / Equity Bottom-Up

<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.

<ul><li>Hektar has proposed to acquire the building and facilities of KYS College at a purchase consideration of RM150m, to be partially satisfied via 20% placement of existing issued units.</li><li>The property is being leased to KYSA Education Sdn Bhd (operator of KYS College), commencing from 22 June-23 on a quadruple-net lease basis for 30 years with a guaranteed rent of RM8.1m for the first year, followed by a 2.5% annual step up.</li><li>Based on our estimation, the deal is expected to enhance our FY23f forecasted core net profit by 18.9%. </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 has proposed to acquire the building and facilities of KYS College at a purchase consideration of RM150m, to be partially satisfied via 20% placement of existing issued units.The property is being leased to KYSA Education Sdn Bhd (operator of KYS College), commencing from 22 June-23 on a quadruple-net lease basis for 30 years with a guaranteed rent of RM8.1m for the first year, followed by a 2.5% annual step up.Based on our estimation, the deal is expected to enhance our FY23f forecasted core net profit by 18.9%. 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>We initiate coverage on Hektar with a HOLD recommendation and TP of RM0.60, based on FY24f DPU at a targeted yield of 11%.</li><li>We project Hektar’s earnings to grow by 9.5%/8.2%/3.5% for FY23f/FY24f/FY25f – mainly driven by expansion in occupancy rate offsetting the slight negative rental reversion.</li><li>Our forecasts imply a divvy yield of 9.0%/9.8%/10.1% for the corresponding periods.</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>

We initiate coverage on Hektar with a HOLD recommendation and TP of RM0.60, based on FY24f DPU at a targeted yield of 11%.We project Hektar’s earnings to grow by 9.5%/8.2%/3.5% for FY23f/FY24f/FY25f – mainly driven by expansion in occupancy rate offsetting the slight negative rental reversion.Our forecasts imply a divvy yield of 9.0%/9.8%/10.1% for the corresponding periods.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.

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

Malaysia

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

Hektar Real Estate Investment Trust (HEKT MK)

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Hektar Real Estate Investment Trust (HEKT MK)

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

Hektar REIT - Foray into Education Asset

Hektar has proposed to acquire the building and facilities of KYS College at a purchase consideration of RM150m, to be partially satisfied via 20%...

Hong Leong Investment Bank Berhad

Hektar REIT - Poised for Steady Recovery

We initiate coverage on Hektar with a HOLD recommendation and TP of RM0.60, based on FY24f DPU at a targeted yield of 11%.

Hong Leong Investment Bank Berhad

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

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