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CGS CIMB |
CGS CIMB |
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Singapore Airlines Coming down from supernormal profit levels
■ With pax yields likely to continue falling and muted uplift to cargo yields, we expect SIA’s core net profits to remain on a downward trajectory in FY25- 27F. ■ Reiterate Reduce, S$5.88 TP (CY24F P/BV of 1.1x, +1 s.d. from 2011 mean).
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ESR-LOGOS REIT Portfolio re-balancing in progress
■ 1H24 DPU of 1.122 Scts is slightly below, at 44% of our FY24F forecast. ■ ELOG continues to enjoy organic rental growth with the proposed new purchase of 2 assets in Singapore and Japan to boost inorganic expansion. ■ We maintain our Add call with a lower DDM-based TP of S$0.36.
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CGS CIMB |
CGS CIMB |
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Keppel Ltd Expect stronger 2H24F
■ KEP’s 1H24 net profit of S$304m was a miss due to lower profits from infra associates, lower dividend distribution from KIT, and higher Floatel losses. ■ Infrastructure’s 1H24F integrated power profits remained firm hoh, with 60% of its portfolio locked in for 3 years above, unaffected by spot market volatility. ■ Despite weaker earnings, interim DPS remained at S$0.15, or a c.89% payout, higher than its usual c.61% over the past 2 years. ■ Re-rating catalyst: sizeable asset monetisation and recovery of property market in China. Maintain Add, but lower SOP-based TP to S$8.28.
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Starhill Global REIT A longer-term play; stay invested
■ Singapore assets offset weakness and FX impact from overseas portfolio. ■ Singapore is likely to deliver positive reversions in FY25F, said management. ■ Reiterate Add, with divestment of office strata a re-rating catalyst.
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| MAYBANK KIM ENG | UOB KAYHIAN |
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CapitaLand Ascendas REIT (CLAR SP) Stable performance
Healthy reversions offset by higher financing cost CLAR reported 1H DPU of SGD7.52c, +1.1% HoH/-2.5% YoY. Higher interest expense and an enlarged number of units offset top-line growth. Portfolio occupancy was stable though US business parks saw lower occupancy. Rent reversion was mid-teen positive for 1H and, consequently, rent reversion guidance has been raised to high single-digit from mid-single digit for the FY. Borrowing cost crept up by 20bps HoH. All in, a steady report card. We maintain our forecasts, BUY rating and TP of SGD2.90.
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REITs – Singapore S-REITs Monthly Update (Jul 24)
S-REITs have weathered the sell-down caused by interest rates staying higher for longer. The recent cooling in the US labour market gave reassurance that rate cuts should commence as anticipated in Sep 24. Maintain OVERWEIGHT. Many blue-chip SREITs are trading at attractive distribution yields of 6-7%. We have picked blue-chip SREITs from a bottom-up basis: BUY FEHT (Target: S$0.77), KREIT (Target: S$1.15), LREIT (Target: S$0.85), MINT (Target: S$2.78) and MPACT (Target: S$1.68).
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