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)

<h2>Singapore  </h2><h3><a href="https://www.smartkarma.com/entities/ireit-global" target="_blank" data-smartkarma-citation="entities:10596" rel="noopener">IREIT Global (IREIT SP)</a> master tenant vacating Darmstadt Campus on 29Nov22</h3><p>An IREIT tenant intends to vacate a property that accounts for about 11% of total GRI. This will be when the lease expires on 29Nov22. As such, the manager does not expect any material impact on DPU for FY21 and FY22. GMG Generalmietgesellschaft is the sole tenant at Darmstadt Campus. The space to be vacated there constitutes 7.9% of IREIT's total portfolio lettable area as at 30Sep. GMG, a unit of Deutsche Telekom AG, is also a tenant in Bonn Campus and Munster Campus. Its Darmstadt Campus lease is independent and separate from these other 2 leases. It will now start marketing the Darmstadt Campus and is exploring a multi-let approach to broaden the tenant mix at the property and reduce the reliance on any one single tenant. With the 1-year notice period, there is adequate time to re-let the property to new tenants, as the property is in a prime office location and within a short walking distance to Darmstadt's main railway station.</p>

Singapore  IREIT Global (IREIT SP) master tenant vacating Darmstadt Campus on 29Nov22An IREIT tenant intends to vacate a property that accounts for about 11% of total GRI. This will be when the lease expires on 29Nov22. As such, the manager does not expect any material impact on DPU for FY21 and FY22. GMG Generalmietgesellschaft is the sole tenant at Darmstadt Campus. The space to be vacated there constitutes 7.9% of IREIT's total portfolio lettable area as at 30Sep. GMG, a unit of Deutsche Telekom AG, is also a tenant in Bonn Campus and Munster Campus. Its Darmstadt Campus lease is independent and separate from these other 2 leases. It will now start marketing the Darmstadt Campus and is exploring a multi-let approach to broaden the tenant mix at the property and reduce the reliance on any one single tenant. With the 1-year notice period, there is adequate time to re-let the property to new tenants, as the property is in a prime office location and within a short walking distance to Darmstadt's main railway station.

<h2>Singapore</h2><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/233/730/original/image_54312508231633489341255.png?1633489342" class="editor-image img-responsive" data-smartkarma-image-id="233730"></figure><h3><a href="https://www.smartkarma.com/entities/sph-reit" target="_blank" data-smartkarma-citation="entities:5994" rel="noopener">SPH REIT (SPHREIT SP)</a> FY21 DPU +98.5% YoY; Rental reversions still weak, cap rate flat</h3><ul><li>2H21 revenue and NPI rose by 27% and 24.6% to S$137.2m and S$97.8m, respectively. FY21 revenue and NPI increased by 14.8% and 11.4% YoY to S$277.2m (107% of BB est) and S$202.7m (122% of BB est), respectively. The increase was mainly due to overall market recovery, lower rental assistance, and the full year contribution from Westfield Marion Shopping Centre</li></ul>

SingaporeSPH REIT (SPHREIT SP) FY21 DPU +98.5% YoY; Rental reversions still weak, cap rate flat2H21 revenue and NPI rose by 27% and 24.6% to S$137.2m and S$97.8m, respectively. FY21 revenue and NPI increased by 14.8% and 11.4% YoY to S$277.2m (107% of BB est) and S$202.7m (122% of BB est), respectively. The increase was mainly due to overall market recovery, lower rental assistance, and the full year contribution from Westfield Marion Shopping Centre

<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;">
<p> </p>
</td>
<td style="width: 141.2pt;">
<p>SPHREIT</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Period</p>
</td>
<td style="width: 141.2pt;">
<p>3Q21</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Gross Revenue (S$ m)</p>
</td>
<td style="width: 141.2pt;">
<p>69.6 (+82.8% YoY)</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>NPI (S$ m)</p>
</td>
<td style="width: 141.2pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>DPU (S$ c)</p>
</td>
<td style="width: 141.2pt;">
<p>1.38 (+176.0% YoY)</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>NAV per Unit (S$)</p>
</td>
<td style="width: 141.2pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>P/B (x)</p>
</td>
<td style="width: 141.2pt;">
<p>1.02 (Based on 2Q21 NAV)</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Occupancy (%)</p>
</td>
<td style="width: 141.2pt;">
<p>98.4</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Reversion (%)</p>
</td>
<td style="width: 141.2pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Gearing (%)</p>
</td>
<td style="width: 141.2pt;">
<p>Not Disclosed</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Cost of Debt (%)</p>
</td>
<td style="width: 141.2pt;">
<p>1.86</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>1 Yr Fwd Yield (%)</p>
</td>
<td style="width: 141.2pt;">
<p>5.62</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Debt Hedged (%)</p>
</td>
<td style="width: 141.2pt;">
<p>58</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Target Price</p>
</td>
<td style="width: 141.2pt;">
<p>NA</p>
</td>
</tr>
<tr>
<td style="width: 141.25pt;">
<p>Rating</p>
</td>
<td style="width: 141.2pt;">
<p>NA</p>
</td>
</tr>
</tbody>
</table>

Singapore
SREITs results in a glance (see detailed spreadsheet and calendar attached)




 


SPHREIT




Period


3Q21




Gross Revenue (S$ m)


69.6 (+82.8% YoY)




NPI (S$ m)


Not Disclosed




DPU (S$ c)


1.38 (+176.0% YoY)




NAV per Unit (S$)


Not Disclosed




P/B (x)


1.02 (Based on 2Q21 NAV)




Occupancy (%)


98.4




Reversion (%)


Not Disclosed




Gearing (%)


Not Disclosed




Cost of Debt (%)


1.86




1 Yr Fwd Yield (%)


5.62




Debt Hedged (%)


58




Target Price


NA




Rating


NA





ASEAN Builder's Scoop (13Jul21) - SPHREIT No Mention of Rebates

Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

<p>The Philippines has been experiencing high levels of economic growth, which has been driven by the business process outsourcing industry. &nbsp;The business process outsourcing industry has&nbsp;been a strong catalyst for the development of the real estate industry in The Philippines. &nbsp;MegaWorld Corporation provides investors with diverse exposure to the real estate industry, has low valuation, and also has a strong track record of success in The Philippines.</p>

The Philippines has been experiencing high levels of economic growth, which has been driven by the business process outsourcing industry. &nbsp;The business process outsourcing industry has&nbsp;been a strong catalyst for the development of the real estate industry in The Philippines. &nbsp;MegaWorld Corporation provides investors with diverse exposure to the real estate industry, has low valuation, and also has a strong track record of success in The Philippines.

MegaWorld Corporation: Access the Growth of Real Estate in The Philippines

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>The SET Index is expected to continue rising today, with the support at 1,250/1,231 points and the resistance at 1,260/1,274 points.</li><li>External factors are on a positive tone after the Fed Chair signaled the possibility of a rate cut last Friday, supporting a decline in US bond yields and an uptick in US equities.</li><li>On the domestic front, the outlook is slightly positive as Thailand's exports in July remain on track for strong growth, easing concerns about the impact of US tariffs on the economy and Thai stock market.</li></ul>

The SET Index is expected to continue rising today, with the support at 1,250/1,231 points and the resistance at 1,260/1,274 points.External factors are on a positive tone after the Fed Chair signaled the possibility of a rate cut last Friday, supporting a decline in US bond yields and an uptick in US equities.On the domestic front, the outlook is slightly positive as Thailand's exports in July remain on track for strong growth, easing concerns about the impact of US tariffs on the economy and Thai stock market.

Fed Chair Signals Rate Cuts; Thai Exports to Continue Expanding, Supporting Further Gains in the Market

Philippines

Sta. Lucia Land, Inc. is a leading real estate developer in the Philippines, specializing in residential communities, including subdivision lots, townhouses, condominiums, and condotels. The company also develops and leases commercial properties such as malls and business centers. It was incorporated in 1966 and is headquartered in Cainta, Rizal, Philippines.

Price Gauge
52-week Range	0.00 - 0.00
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Dividend (Yield)	0.00

Sta. Lucia Land (SLI PM)

ASEAN Builder's Scoop (8Nov21)

IREIT master tenant vacating in Nov22; YLLG Oct21 presales up 50% MoM; SLI postpones PHP9.9bn follow-on offering; RLC initiates PHP3bn buyback program

SCCM Asia Research

ASEAN Builder's Scoop (5Oct21)

SPHREIT rental reversions still weak, cap rate flat; SLI ventures into leisure farms residential concept; Phils Sep21 inflation call at 5.2%; IOIPG...

SCCM Asia Research

ASEAN Builder's Scoop (13Jul21) - SPHREIT No Mention of Rebates

SPHREIT no mention of rebates; CAPL opens RC the Bund Shanghai; LMRT extends mall closure in Medan; SLI plans for 3bn shares follow-on offer; 2Q21...

SCCM Asia Research

MegaWorld Corporation: Access the Growth of Real Estate in The Philippines

The Philippines has been experiencing high levels of economic growth, which has been driven by the business process outsourcing industry. The...

Nomadic Equity

Fed Chair Signals Rate Cuts; Thai Exports to Continue Expanding, Supporting Further Gains in the Market

The SET Index is expected to continue rising today, with the support at 1,250/1,231 points and the resistance at 1,260/1,274 points. External...

Krungthai XSpring

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)