The REITs Pulsebeat - RHB Securities 2015-09-07: Weekly Review Report (Part 1 of 3)

Singapore REIT

S-REITs Investment Thesis 


ASCENDAS REAL ESTATE INV TRUST - AREIT (BUY, TP2.35

  • Over SGD100m worth of development & AEI works in pipeline helps buffer downside risks should property prices be re-calibrated due to interest rate hikes. 
  • Looks fully-valued at this juncture. 
  • Catalysts: Consistent DPU delivery and future acquisitions from sponsor. 
  • Risk to TP: Slower than expected rates hikes may spur short-term buying ,pushing up share price and vice versa. 

CACHE LOGISTICS TRUST - CACHE (Neutral, TP 0.98

  • Tenant concentration risk on CWT/C&P (sponsor), with 51% of leases expiring in 2015-2016. 
  • Catalysts: Further foray into build-to-suit developments and sponsor injections. 
  • Risk to TP: Slower than expected rates hikes may spur short-term buying ,pushing up share price and vice versa. 

CAPITALAND COMMERCIAL TRUST - CCT (SELL, TP 1.15

  • All eyes hinges on CapitaGreen, with 76% pre-commitment. 
  • Minimal dilution with SGD5.25m and SGD175m of CB due in 2015 and 2017 respectively (3.9%) 
  • Catalysts: Further acquisitions incl remaining 60% stake in CapitaGreen. Better than expected office rentals pickup. 
  • Risk to TP: Exacerbated SG office space reduction by financial institutions. 

CDL HOSPITALITY TRUSTS - CDLHT (SELL, TP1.14

  • Maldives foray proves to be a gem, contributing over 10% of revenue as of 3Q14 
  • No signs of recovery in Singapore tourism market. At risk of meeting STB's visitor arrivals target of 16.3-16.8m in 2014. 
  • Catalysts: Further sponsor injections or acquisitions in Maldives. Corporate bookings may turn favorable should USD strengthens. 
  • Risk to TP: More than expected hotel rooms additions in 2014-2016. Sharp decline of tourism in the region.


Ong Kian Lin | Ivan Looi | http://www.rhbgroub.com/ RHB Securities 2015-09-07
BUY Maintain BUY 2.35 Same 2.35
NEUTRAL Maintain NEUTRAL 0.97 Same 0.97
SELL Maintain SELL 1.15 Same 1.15
SELL Maintain SELL 1.14 Same 1.14


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