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RHB |
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Grocery Retail April Grocery Spending Spikes On Circuit Breaker
OVERWEIGHT; grocery spending spike much higher than anticipated. Supermarket and hypermarket retail sales in April soared 75% YoY and 30% MoM from the implementation of “circuit breaker” (CB) measures. The growth is much stronger than our estimate, and in line with our positive stance on Sheng Siong, Singapore’s third-largest supermarket operator and a direct CB beneficiary. As there is potential earnings upside for Sheng Siong, we maintain BUY and our SGD1.72 TP.
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Keppel Pacific Oak US REIT Exceeding Expectations So Far; Keep BUY
BUY, new TP of USD0.80 from USD0.76, 11% upside with c.8% FY20F yield. We recently hosted a virtual non-deal roadshow for Keppel Pacific Oak US REIT, for Malaysian investors. Management is confident that, despite the sudden shift in office space outlook due to COVID-19, KORE can better weather the crisis due to its asset quality and choice submarkets, limited near-term lease expiries, and diversified tenant base. Key catalysts: better-than-expected economic recovery and recent index inclusions.
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UOB KAYHIAN |
CGS CIMB |
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REITs – Singapore S-REITs Weekly
BUY CMT (Target: S$2.60), FCT (Target: S$2.85), ART (Target: S$1.16), FEHT (Target: S$0.62) and KREIT (Target: S$1.30). WHAT HAPPENED LAST WEEK • UOBKH S-REIT Index gained 4.5% to 259.5 last week. The Ministry of Foreign Affairs (MFA) and the Ministry of Trade & Industry (MTI) announced that the Singapore-China "fast lane" arrangement to facilitate essential businesses and official trips between the two countries will commence on 8 June. Travel between Singapore and six Chinese provinces and municipalities (Shanghai, Tianjin, Chongqing, Guangdong, Jiangsu and Zhejiang) will reopen and gradually expand to other provinces and municipalities.
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REIT Hospitality: Heading to a good start
■ The launch of fast lane arrangement with China on Monday marks a big move in the right direction and bodes well for the hospitality industry. ■ Apr RevPAR and arrivals declined 80% yoy and to 748 persons but we expect gradual recovery going forward as countries slowly open up borders. ■ Reiterate Add on ART, CDLHT and FEHT. Believe downside risks priced in.
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Check out our compilation of Target Prices
