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Lendlease Global Commercial REIT (LREIT SP) 1QFY22 Business Update: Unique Positioning Along Orchard Road Drives Positive Reversion
313@Somerset achieved high single-digit positive rental reversion driven by new and renewed leases for F&B outlets. Retailers are attracted to 313@Somerset due to the potential of a multifunctional event space at Grange Road car park, attracting more shopper traffic. LREIT provides attractive distribution yield of 5.3% for FY22 and 6.0% for FY23. Inclusion in the FTSE EPRA Nareit Developed Asia Index will put LREIT on the radar of many institutional funds. Maintain BUY. Target Price: S$1.03.
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Property – Malaysia Near-Term Recovery Priced In Amid Potential Headwinds Towards 2022
Anticipated robust sales in 4Q21 with pent-up demand could lead to a strong earnings recovery in 2022. However, sales may normalise or potentially contract in 2022 amid rate hikes and a lack of incentives to spur buying activities. Earnings could tail off thereafter. The sector’s current valuation appears fair after the recent re-rating in view of the lack of catalysts in 2022. Maintain MARKET WEIGHT, top pick: Matrix Concepts.
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MAYBANK KIM ENG |
DBS |
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Genting Malaysia (GENM MK) Downstate New York casino license back on the cards
Maintain BUY call and MYR3.40 DCF-TP After a 4-month delay, the New York State Gaming Commission (NYSGC) launched a Request For Information (RFI) on three downstate commercial casino licenses. We opine that GENM’s Resorts World New York City (RWNYC) is in a good position to win one. If it does, we estimate that RWNYC can accrete c.USD145m (c.MYR610m) in net profit p.a. and MYR0.53 to our DCF-based TP. Maintain estimates (pending clarity on Cukai Makmur), BUY call and MYR3.40 TP for now.
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SIA ENGINEERING • 1HFY22 net profit of S$25m in line with estimates, no room for dividends though • Optimism on recovery prospects increase from launch of multiple VTLs in Singapore • Recovery of air travel over next 2 years should lead to strong earnings rebound in FY23/24 • Upgrade to BUY with higher TP of S$2.65 |
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