| PHILLIP SECURITIES | CIMB |
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Mapletree Industrial Trust Firepower to acquire S$84.45mn gross revenue in line with our forecast of S$84.76mn 2.83 cents DPU exceeded our forecast of 2.69 cents by 5.2% (3QFY16: 2.82 cents)
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Parkway Life REIT Added boost from asset disposal gains in FY17 ■ 4Q and FY16 DPU were in line with expectations at 25.2% and 99.8%, respectively, of our full-year forecast. ■ Singapore hospitals delivered improved revenue and NPI yoy in FY16, while new acquisitions and higher rent from existing properties boosted Japan performance. ■ PREIT intends to distribute S$5.3m net asset disposal gains (from the sale of four nursing home properties in Japan) in FY17F. ■ Maintain Add with a slightly higher DDM-based target price of S$2.58.
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| OCBC | |
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OUE Hospitality Trust: Crowne Plaza – a buffer in these tough times OUE Hospitality Trust’s (OUEHT) FY16 results were in line with expectations. OUE Hospitality Trust’s (OUEHT) FY16 DPU fell 29.6% YoY to 4.61 S cents, or 97% of our forecast; hospitality revenue was 2.3% higher while retail revenue declined 11.3%. While we are reluctant to expect an immediate boost from the opening of Terminal 4 in 2H17, we view Changi Airport’s capacity expansions as a strong medium-term (two to four year) catalyst for higher contributions at CPCA. Despite the tepid outlook on corporate demand, OUEHT offers value at current price levels. After adjusting our projections and applying a lower cost of equity of 7.9% (8.0% previously), our fair value increases from S$0.73 to S$0.75. We maintain BUY on OUEHT with a higher fair value estimate of S$0.75. |
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| UOB KAYHIAN | DBS VICKERS |
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UOB To Gain From NIM Widening We raise UOB’s TP by 21% to SGD22.90 (from SGD18.90, 9% upside) as we cut 2017 loan loss provisioning and raise our long-term ROE assumption to 10.1%. We believe 4Q16’s asset quality deterioration was at a controlled pace, which should keep credit costs within management’s guidance. UOB has the highest LLC amongst peers, which provides scope for a write-back of general provisions in 2017. The bank ought to record wider NIMs from the SIBOR’s rise. Its share price has also underperformed DBS by 10ppts over the past four months. We upgrade to BUY (from Neutral).
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