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/uol-group-ltd" target="_blank" data-smartkarma-citation="entities:142" rel="noopener">UOL Group (UOL SP)</a> 2H21 PATMI +126% YoY; Stronger contributions from property development and hotel properties</li><li><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> acquires South Korean Logistic at 4.0% NPI yield; Expected to be DPU accretive</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> 2H21 net profit fell 13% YoY; Declared S$0.068/share divvy (~5.6% yield)</li></ul>

UOL Group (UOL SP) 2H21 PATMI +126% YoY; Stronger contributions from property development and hotel propertiesMapletree Logistics Trust (MLT SP) acquires South Korean Logistic at 4.0% NPI yield; Expected to be DPU accretiveYanlord Land (YLLG SP) 2H21 net profit fell 13% YoY; Declared S$0.068/share divvy (~5.6% yield)

ASEAN Builder's Scoop (1Mar22) - UOL Stronger Contributions from Prop Dev't and Hotels

<ul><li><a href="https://www.smartkarma.com/entities/dasin-retail-trust" target="_blank" data-smartkarma-citation="entities:23743" rel="noopener">Dasin Retail Trust (DASIN SP)</a> 2H21 DPU +10.9% YoY; All eyes remain on the hefty 2022 refinancing burden</li><li><a href="https://www.smartkarma.com/entities/bhg-retail-reit" target="_blank" data-smartkarma-citation="entities:21021" rel="noopener">BHG Retail REIT (BHGREIT SP)</a> 2H21 DPU -0.9% YoY; Steady as she goes with occupancy rates inching higher</li><li><a href="https://www.smartkarma.com/entities/ireit-global" target="_blank" data-smartkarma-citation="entities:10596" rel="noopener">IREIT Global (IREIT SP)</a> 2H21 DPU +7.9% YoY; Continued to trade ~25% below book value despite an attractive 7+% yield</li></ul>

Dasin Retail Trust (DASIN SP) 2H21 DPU +10.9% YoY; All eyes remain on the hefty 2022 refinancing burdenBHG Retail REIT (BHGREIT SP) 2H21 DPU -0.9% YoY; Steady as she goes with occupancy rates inching higherIREIT Global (IREIT SP) 2H21 DPU +7.9% YoY; Continued to trade ~25% below book value despite an attractive 7+% yield

ASEAN Builder's Scoop 28Feb22 - DASIN All Eyes on Mar22 Loan Refinancing

<h2>Singapore</h2><h3>Condo resale prices, volume continue to climb in Aug21; Suburban (OCR) leading the upward trend</h3>Demand for resale non-landed private homes remained robust in Aug21 with prices climbing and more units changing hands despite the Hungry Ghost Festival when sales typically slow down. Condominium resale prices climbed 0.5% MoM, albeit at a slower pace than the revised 0.9% jump in Jul21, according to SRX. YoY, resale prices were up 7.9% from Aug20. MoM, homes in the suburbs enjoyed the biggest price increase of 0.9%. Prices in central Singapore went up by 0.3% while homes in the city fringes saw prices dip 0.2%. More condo units were sold for the second straight month, with an estimated 1,860 units resold in Aug21, a 4.9% increase from the 1,773 units in Jul21. Transactions were 40.5% higher YoY, and 79.5% above the five-year average volume for the month of Aug. Most of the transactions were units in the suburbs, representing 60.4% of total volume for the month. About 23% of transactions were in the city fringes, with the remaining 16.5% in the prime districts or core central region. Prices have increased 6.4 % year-to-date and may increase by more than 8% this year.

SingaporeCondo resale prices, volume continue to climb in Aug21; Suburban (OCR) leading the upward trendDemand for resale non-landed private homes remained robust in Aug21 with prices climbing and more units changing hands despite the Hungry Ghost Festival when sales typically slow down. Condominium resale prices climbed 0.5% MoM, albeit at a slower pace than the revised 0.9% jump in Jul21, according to SRX. YoY, resale prices were up 7.9% from Aug20. MoM, homes in the suburbs enjoyed the biggest price increase of 0.9%. Prices in central Singapore went up by 0.3% while homes in the city fringes saw prices dip 0.2%. More condo units were sold for the second straight month, with an estimated 1,860 units resold in Aug21, a 4.9% increase from the 1,773 units in Jul21. Transactions were 40.5% higher YoY, and 79.5% above the five-year average volume for the month of Aug. Most of the transactions were units in the suburbs, representing 60.4% of total volume for the month. About 23% of transactions were in the city fringes, with the remaining 16.5% in the prime districts or core central region. Prices have increased 6.4 % year-to-date and may increase by more than 8% this year.

<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; height: 14.35pt;"> </td><td style="width: 141.2pt; height: 14.35pt;">PRIME</td><td style="width: 141.2pt; height: 14.35pt;">KORE</td></tr><tr><td style="width: 141.25pt; height: 14.85pt;">Period</td><td style="width: 141.2pt; height: 14.85pt;">1H21</td><td style="width: 141.2pt; height: 14.85pt;">1H21</td></tr><tr><td style="width: 141.25pt; height: 14.9pt;">Gross Revenue (S$m)</td><td style="width: 141.2pt; height: 14.9pt;">72.1 (+1.2% YoY)</td><td style="width: 141.2pt; height: 14.9pt;">68.38 (-3% YoY)</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">NPI (S$m)</td><td style="width: 141.2pt; height: 14.35pt;">46.3 (-2.3% YoY)</td><td style="width: 141.2pt; height: 14.35pt;">40.58 (-3.1% YoY)</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">DPU (S$ c)</td><td style="width: 141.2pt; height: 14.35pt;">3.33 (-5.4% YoY)</td><td style="width: 141.2pt; height: 14.35pt;">3.16 (+1.9% YoY)</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">NAV per Unit (S$)</td><td style="width: 141.2pt; height: 14.35pt;">0.86</td><td style="width: 141.2pt; height: 14.35pt;">0.82</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">P/B (x)</td><td style="width: 141.2pt; height: 14.35pt;">0.98</td><td style="width: 141.2pt; height: 14.35pt;">0.95</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">Occupancy (%)</td><td style="width: 141.2pt; height: 14.35pt;">91.7</td><td style="width: 141.2pt; height: 14.35pt;">90.5</td></tr><tr><td style="width: 141.25pt; height: 7.2pt;">Reversion (%)</td><td style="width: 141.2pt; height: 7.2pt;">10.5</td><td style="width: 141.2pt; height: 7.2pt;">5.4</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">Gearing (%)</td><td style="width: 141.2pt; height: 14.35pt;">34.4</td><td style="width: 141.2pt; height: 14.35pt;">37.1</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">Cost of Debt (%)</td><td style="width: 141.2pt; height: 14.35pt;">3.2</td><td style="width: 141.2pt; height: 14.35pt;">2.82</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">1 Yr Fwd Yield (%)</td><td style="width: 141.2pt; height: 14.35pt;">8.45</td><td style="width: 141.2pt; height: 14.35pt;">7.77</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">Debt Hedged (%)</td><td style="width: 141.2pt; height: 14.35pt;">86%</td><td style="width: 141.2pt; height: 14.35pt;">84.7</td></tr><tr><td style="width: 141.25pt; height: 14.35pt;">Target Price</td><td style="width: 141.2pt; height: 14.35pt;">N/A</td><td style="width: 141.2pt; height: 14.35pt;">N/A</td></tr><tr><td style="width: 141.25pt; height: 14.85pt;">Rating</td><td style="width: 141.2pt; height: 14.85pt;">N/A</td><td style="width: 141.2pt; height: 14.85pt;">N/A</td></tr></tbody></table>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached) PRIMEKOREPeriod1H211H21Gross Revenue (S$m)72.1 (+1.2% YoY)68.38 (-3% YoY)NPI (S$m)46.3 (-2.3% YoY)40.58 (-3.1% YoY)DPU (S$ c)3.33 (-5.4% YoY)3.16 (+1.9% YoY)NAV per Unit (S$)0.860.82P/B (x)0.980.95Occupancy (%)91.790.5Reversion (%)10.55.4Gearing (%)34.437.1Cost of Debt (%)3.22.821 Yr Fwd Yield (%)8.457.77Debt Hedged (%)86%84.7Target PriceN/AN/ARatingN/AN/A

ASEAN Builder's Scoop (04Aug21) - PRIME High Opex Offset Robust Reversions

Singapore

OUE Limited operates as a diversified real estate owner, developer, and operator with a portfolio of assets in prime locations in Singapore. The company focuses its business in the commercial, hospitality, retail, residential and healthcare sectors.

OUE Ltd (OUE SP)

ASEAN Builder's Scoop (1Mar22) - UOL Stronger Contributions from Prop Dev't and Hotels

MLT buys South Korean logistics at 4% yield; DC rates rising except for hotel use; AREIT growing AUM boosted earnings; SIRI targets +26% YoY 2022...

SCCM Asia Research

ASEAN Builder's Scoop 28Feb22 - DASIN All Eyes on Mar22 Loan Refinancing

BHGREIT steady as she goes; IREIT trading ~25% below book; AEW sells 55MS for S$3,450psf; CLD signs S$1.3bn Vietnam MOU; ELITE embarks on new AEI

SCCM Asia Research

ASEAN Builder's Scoop (15Sep21)

Condo resale prices, volume climbing in Aug21; CLI breaks ground on PHP4bn Cebu mixed-use project; CPN launches housing project NIRATI; OUE issuing...

SCCM Asia Research

ASEAN Builder's Scoop (04Aug21) - PRIME High Opex Offset Robust Reversions

PRIME high opex offset robust reversions; CERT maiden UK logistics acq; OUE 1H21 earnings reversed from a loss; ALI 1H21 NI +34% YoY on low base,...

SCCM Asia Research