| MAYBANK KIM ENG | PHILLIP SECURITIES |
|
Yield Headwinds Will Lower 1Q18 Profit
|
Mapletree Industrial Trust Consistent set of results SINGAPORE | REAL ESTATE (REIT) | 1Q18 RESULTS 1Q18 gross revenue in line with our forecast 1Q18 DPU exceeded our forecast by 6.6% from slower increase in property expenses Portfolio weighted average rental reversion of -2.0% for the quarter Raised FY18e/FY19e DPU forecast by 2.1%/1.2%, as we revised our property expense assumptions
|
| OCBC | |
|
Viva Industrial Trust: Expect positive rental reversions for FY18/19 Viva Industrial Trust’s (VIT) solid set of 2Q17 results were within expectations. 2Q17 DPU increased 6.3% YoY to 1.861 S cents, or 24.1% of our full-year forecast. Looking at the quarter’s results, we are encouraged by the total committed occupancy of 89% at Jackson Square as at end-Jun, contributed by >70K sq ft of new leases signed. We lower our cost of equity from 8.5% to 8.0%, following the successful completion of AEI at VBP and the positive rental reversions expected for upcoming lease expiries in FY18 and FY19. After adjustments, our fair value increases from S$0.83 to S$0.895. VIT currently enjoys an FY17F yield of 8.3%. Given that current price levels have exceeded our fair value, we downgrade VIT from Buy to HOLD with a fair value of S$0.895. |
|
| CIMB | DBS VICKERS |
|
Suntec REIT Priced in ■ 1H17 DPU of 4.918 Scts was in line, making up 49% of our FY17F forecast. ■ Higher Australia contributions offset the weaker Singapore performance. ■ Adopting office tenant retention strategy, continues to right-size retail mix. ■ Strong balance sheet with visible growth pipeline. ■ Valuations not compelling; retain Reduce rating; our TP rises to S$1.77 due to inclusion of Olderfleet project
|
Market Focus Spotlight Turns towards Rig Builders Interest rotation to rig builders – Positive on SembCorp Industries, SembCorp Marine and Keppel Corp Property stocks still underpinned by improving sentiment – Picks UOL and City Dev Banks results – Watch NIM, loans growth and NPL STI resistance c.3350, formidable at 3400, pullback support 3255
|
Check out our compilation of Target Prices
