Singapore REIT
S-REITs Investment Thesis
MAPLETREE LOGISTICS TRUST - MLT (NEUTRAL, TP1.18)
- Slowdown in acquisitions prev. in 2013. Unexciting DPU CAGR of 1.4% over FY3/14-17E.
- Acquisitons picking up pace in 2014. Seeing more asset recycling.
- Catalysts: Injections from sponsor, who has a pipeline of 13 sizeable logistics developments in Asia, more than half of MLT's total portfolio NLA.
- Risk to TP: Slower than expected rates hikes may spur short-term buying ,pushing up share price and vice versa.
OUE HOSPITALITY TRUST - OUEHT (SELL, TP 0.78)
- 78% exposure to Orchard Road and 22% in Crown Plaza Changi Airport Hotel (pending acquisition)
- Highest DPU yield amongst Singaporebased hospitality and retail REITs.
- Catalyst: Yield-accretive acquisition of Crowne Plaza Changi Airport hotel from its sponsor.
- Risk to TP: More than expected hotel rooms additions in 2014-2016. Sharp decline of tourism in the region.
STARHILL GLOBAL REIT - Starhill (BUY, TP0.93)
- Beneficiary of SG tourism growth, with its key assets are in the coveted Orchard Road area. Tight supply and entry of new international retailers grants it bargaining power in terms of leasing its space
- Japan and China portfolio still a drag on top line.
- Catalysts: Further divestment of noncore China and Japan asssets (6% of asset). Further yield-accretive acquisitions.
- Risk to TP: Sharp decline of tourism in the region.
Ong Kian Lin | Ivan Looi | http://www.rhbgroub.com/ RHB Securities 2015-08-31
1.18
Same
1.18
0.78
Same
0.78
0.93
Same
0.93
