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
2.35
Same
2.35
0.97
Same
0.97
1.15
Same
1.15
1.14
Same
1.14
