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PHILLIP SECURITIES |
UOB KAYHIAN |
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Lendlease Global Commercial REIT Low-teens rental reversion expected for JEM office
• Gross revenue and NPI declined by 13.6% and 19.8% YoY, respectively, accounting for 46% and 45% of our FY25e estimates. This was due to the absence of pre-termination fee paid by Sky Italia and the longer-than-expected backfilling of Building 3 Sky Complex. NPI margin was impacted by a one-off expense of c.£1mn for equipment repairs, which has yet to be capitalized, along with higher marketing expenses.
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Keppel Pacific Oak US REIT (KORE SP) 2H24: Sequential Uptick In Occupancy; Stable Portfolio Valuation
Portfolio occupancy improved 1.3ppt qoq to 90.0% in 4Q24, driven by gains at Bellevue Tech Center in Bellevue and Maitland Promenade in Orlando. KORE clocked a positive rental reversion of 1.7% in 4Q24, a turnaround compared with negative 1.2% for 9M24. Portfolio valuation was stable, while aggregate leverage edged slightly higher by 1.1ppt qoq to 43.7%. KORE is expected to resume distribution in 2026. It trades at a 2026 distribution yield of 15.6% and P/NAV of 0.35x. Maintain BUY. Target price: US$0.33.
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CGS CIMB |
CGS CIMB |
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SingTel Potential hike in FY25F EBIT guidance
■ We think Singtel could raise its FY25F EBIT growth guidance to mid-to-high teens (from low double-digits) with cost cuts progressing well. ■ We estimate 3QFY25F core net profit was c.S$660m (+12% qoq, +18% yoy), driven by Optus margin growth and stronger associate profits. ■ Dividends are well-backed by improving FCF and an asset monetisation pipeline of c.S$12bn. We view FY26F/27F yield of 5.9%/6.5% as attractive.
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REIT Hospitality REITs – Upbeat IVA projections
■ Singapore’s international visitor arrivals (IVA) totalled 16.5m in 2024. The Singapore Tourism Board (STB) projects 2025F IVA at 17m-18.5m. ■ We project hotel RevPAR growth of 2-3% in 2025F, based on STB’s IVA forecast and factoring in a 2.1% expansion in hotel key stocks in 2025F. ■ Hospitality SREITs under our coverage are trading at FY25F DPU yields of 6.9-7%, attractive when compared to the overall REIT sector yield of 6.3%
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| MAYBANK KIM ENG | CNMC |
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Lendlease Global Comm REIT (LREIT SP) Higher occupancy; normalising reversions
Distribution impacted by finance cost LREIT reported 1H DPU of SGD 1.8c, +1.7% HoH/-14.3% YoY. Higher financing cost and an enlarged unit base offset a relatively stable top line. Malls are nearly full while office saw higher committed occupancy. Low teens positive reversions continued. Financial metrics were stable. Construction started on a multifunctional event space next to 313@somerset. We lower our forecasts and DDM-based TP to SGD0.65 from SGD0.70. Maintain BUY on valuation (6.2% yield, 0.6x PB).
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The Business Times: Ten to 20 years ago, few strategists actively recommended an exposure to gold. Historically, gold suffered decades of price stagnation and did not pay an income. Today, gold’s status as a strategic asset has staged a remarkable turnaround; its record performance last year appears to have only burnished its desirability The strength in gold prices will be beneficial for CNMC Goldmine (S$0.305, up 1.5 cents), a gold mining company with operations in the state of Kelantan, Malaysia. CNMC’s market cap stands at S$124mln and currently trades at 10.2x annualized PE and 2.1x PB, with a dividend yield of 4%. The company sells gold at the spot rate and has exposure to silver through the sale of lead concentrates. Gold prices rose 27% in 2024 and has continued its rise in 2025, hitting an all-time high of USD2,840/oz today. We believe the higher average realized gold spot rate can contribute significantly to their bottom line in particular 2H24, assuming gold volume extracted remains constant. Maintain BUY on CNMC. |
