CDL Hospitality Trusts is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment trust, and CDL Hospitality Business Trust (“HBT”), a business trust. CDL Hospitality Trusts was listed on the Singapore Exchange Securities Trading Limited (“SGX”) on 19 July 2006.
As of 31 December 2008, H-REIT’s portfolio with a total of 2,806 hotel rooms, comprises Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel and Novotel Clarke Quay (collectively, the “Singapore Hotels”), all of which are located in Singapore and marketed as “superior” hotels, the Rendezvous Hotel Auckland, a deluxe hotel located in New Zealand’s gateway city of Auckland, as well as the Orchard Hotel Shopping Arcade, the shopping arcade adjoining Orchard Hotel.
HBT is a business trust which is presently dormant. Accordingly, the financial information of HBT has not been presented. HBT will, however, become active if H-REIT is unable to appoint a master lessee for any of the hotels in its portfolio at the expiry of the relevant master lease agreement or for a newly acquired hotel. In such circumstances, HBT will be appointed by H-REIT as a master lessee for that hotel, and HBT will in turn appoint a professional hotel manager to manage the day-to-day operations and marketing of the hotel. HBT exists primarily as “a master lessee of last resort”. HBT may also become active if it undertakes certain hospitality and hospitality-related development projects, acquisition and investments which may not be suitable for H-REIT.
H-REIT’s distribution policy is to distribute at least 90.0% of its taxable income, comprising substantially its income from the letting of the properties and related property services income after deduction of expenses and allowances, and of its tax exempt income (if any), with the actual level of distribution to be determined at the H-REIT Manager’s discretion. H-REIT will be distributing 90% of its taxable and 100% of its tax exempt income available for distribution to holders of the Stapled Securities for the financial period from 1 July 2008 to 31 December 2008. Distributions, when paid, will be in Singapore Dollars. H-REIT will make distributions to holders of the Stapled Securities on a semi-annual basis, with the amount calculated as at 30 June and 31 December each year for the six-month period ending on each of the said dates (the “Scheduled Distribution”). The first Scheduled Distribution was paid on 29 August 2008. The second Scheduled Distribution will be paid on 27 February 2009.
Source: UNAUDITED FINANCIAL STATEMENTS ANNOUNCEMENT OF CDL HOSPITALITY TRUSTS AND H-REIT AND ITS SUBSIDIARIES FOR THE YEAR ENDED 31 DECEMBER 2008
Saturday, January 31, 2009
Thursday, January 29, 2009
The Crude Oil Contango: How to Profit From Rising Oil Prices
by Matt Weinschenk, Senior Analyst, The White Cap Report
Wednesday, January 28, 2009: Issue # 923
http://www.investmentu.com/IUEL/2009/January/crude-oil-contango.html
I uncovered a situation last week call contango. It’s a feature of futures markets where you can buy crude oil cheap right now and lock in a contract to sell it in the future for a higher price. Normally, the difference between those prices is so close to the cost of storing the oil that it’s not a profitable trade. But right now, we’re in a state of super-contango. Prices are way out of whack. And commodity investors are storing crude oil everywhere they can to earn the excess profits.
USO buys a contract for crude oil for the very next month. Before it expires, they sell it off and buy one for the next month. In a contango situation the returns will indisputably be lower. (Conversely, during the opposite of contango, “backwardation,” the fund returns will be higher). USO makes no secret of this. They print it in their risk disclosures that contango is not good for their fund.
But don’t give up on investing in oil.
In fact, the same manager that runs the USO fund runs another exchange traded security that’s custom designed to benefit from situations like the crude oil contango. It’s called the United States 12 Month Oil Fund (NYSE: USL). It uses a 12-month average of futures prices that will lessen the losses caused by a contango market.
Wednesday, January 28, 2009: Issue # 923
http://www.investmentu.com/IUEL/2009/January/crude-oil-contango.html
I uncovered a situation last week call contango. It’s a feature of futures markets where you can buy crude oil cheap right now and lock in a contract to sell it in the future for a higher price. Normally, the difference between those prices is so close to the cost of storing the oil that it’s not a profitable trade. But right now, we’re in a state of super-contango. Prices are way out of whack. And commodity investors are storing crude oil everywhere they can to earn the excess profits.
USO buys a contract for crude oil for the very next month. Before it expires, they sell it off and buy one for the next month. In a contango situation the returns will indisputably be lower. (Conversely, during the opposite of contango, “backwardation,” the fund returns will be higher). USO makes no secret of this. They print it in their risk disclosures that contango is not good for their fund.
But don’t give up on investing in oil.
In fact, the same manager that runs the USO fund runs another exchange traded security that’s custom designed to benefit from situations like the crude oil contango. It’s called the United States 12 Month Oil Fund (NYSE: USL). It uses a 12-month average of futures prices that will lessen the losses caused by a contango market.
Wednesday, January 28, 2009
Frasers Centrepoint Trust: Addressing tenant sustainability - OUTPERFORM (CIMB)
Dividend Yield: 2008 - 11.2%, 2009F - 10.7%
Debt Maturity Profile: 2009 - $62m 2010 - $0, $2011 - $260m
1Q09 results were in line with Street and our expectations. DPU for 1Q09 was 1.67cts, 24% of our full-year forecast. Gross revenue of S$19.5m deteriorated 3.2% yoy due to planned asset enhancement work at Northpoint. Additionally, property expenses increased 7.5% on higher property taxes. However, net property income margins improved to 65.9% from 63.8%, supported by doubledigit growth in rental reversions for Causeway Point (+18.9%) and Anchorpoint (+17.5%). Portfolio occupancy climbed to 88.7% from 87.7% in 4Q08 as occupancy at Northpoint improved despite ongoing asset enhancement work.
A 40% property tax rebate for commercial buildings has been announced in Budget 2009. Management will be passing on the rebate benefits to its tenants. While this will not result in DPU improvements, it should help to retain tenants, who are facing increasingly difficult retail sales.
We maintain our DPU estimates. The government’s fiscal measures and management’s decision to pass on tax-rebate benefits to tenants should support tenants’ business sustainability in the short to medium term. FCT remains our preferred pick for suburban retail exposure for its lower 0.52x P/BV vs. CMT’s 0.6x. Maintain Outperform.
Debt Maturity Profile: 2009 - $62m 2010 - $0, $2011 - $260m
1Q09 results were in line with Street and our expectations. DPU for 1Q09 was 1.67cts, 24% of our full-year forecast. Gross revenue of S$19.5m deteriorated 3.2% yoy due to planned asset enhancement work at Northpoint. Additionally, property expenses increased 7.5% on higher property taxes. However, net property income margins improved to 65.9% from 63.8%, supported by doubledigit growth in rental reversions for Causeway Point (+18.9%) and Anchorpoint (+17.5%). Portfolio occupancy climbed to 88.7% from 87.7% in 4Q08 as occupancy at Northpoint improved despite ongoing asset enhancement work.
A 40% property tax rebate for commercial buildings has been announced in Budget 2009. Management will be passing on the rebate benefits to its tenants. While this will not result in DPU improvements, it should help to retain tenants, who are facing increasingly difficult retail sales.
We maintain our DPU estimates. The government’s fiscal measures and management’s decision to pass on tax-rebate benefits to tenants should support tenants’ business sustainability in the short to medium term. FCT remains our preferred pick for suburban retail exposure for its lower 0.52x P/BV vs. CMT’s 0.6x. Maintain Outperform.
Friday, January 23, 2009
Keppel Land: Lifted by one-off items
Keppel Land reported FY08 net profit of $227.7m, -71% yoy, on a 40% decline in revenue to $842.2m. Slower development income was partially offset by a decline in interest expense and one-off gains from writeback of costs relating to restructuring of interest in ORQ ($14.5m), negative goodwill from additional stake in Kreit ($10.7m) and fair value gain from investment properties ($4.5m). Excluding the one-time items, net profit would have been $198m, in line with expectations. The group is proposing a final DPS of 8cts (5.3% yield) and is seeking shareholder approval to establish a dividend reinvestment scheme.
DBS Group Research . Equity, 22 Jan 2009
DBS Group Research . Equity, 22 Jan 2009
Pacific Shipping Trust: 4Q results par for the course
Pacific Shipping Trust (PST) posted US$14.5m in 4Q08 revenue, up 67% YoY and 30% QoQ. For the full year, it recorded a 29% increase in revenue to US$44.6m. The strong gains were due to contributions from the four vessel acquisitions made over the course of 2008. The trust recorded a net profit of US$6.3m for the quarter. Because of a change in the accounting treatment, PST will no longer reflect fair value gains and losses on its interest rate swaps on its P&L statements. Stripping out the same from 4Q07 accounts, the trust saw roughly a 53% YoY gain in net profit. The results met our expectations.
PST will pay unitholders 0.93 US cent per unit in distributions for the quarter, which translates to a 25% annualized trailing yield. Despite gains in cash income, this DPU figure is about 15% lower on a YoY and QoQ basis because of: 1) the lower payout policy adopted in 2008; 2) an enlarged shareholder base after the 3Q08 preferential offering; and 3) a partial revenue contribution from the CSAV Lauca, the fourth acquisition completed only in mid-November. We estimate a slight increase in 1Q09 DPU, which marks the first full contribution from CSAV Lauca. At the same time, PST's interest expenses will decrease in sync with the trust's debt repayment schedule. This should also boost DPU on a more gradual basis.
PST is in a comfortable position since the completion of its 3Q08 preferential offering, which raised about US$92.3m. The proceeds were used to partially fund the 2008 vessel acquisitions. PST is currently geared at about 1x debt-to-equity. We expect this to fall to about 0.94x by the end of this year as the trust pays down debt. PST can also sit tight as it has no refinancing needs in the near to medium term. PST also stands out because it is the only Singapore-listed shipping trust without loan-to-market value covenants on its books.
Source: OCBC Investment Research, 22 Jan 2009
PST will pay unitholders 0.93 US cent per unit in distributions for the quarter, which translates to a 25% annualized trailing yield. Despite gains in cash income, this DPU figure is about 15% lower on a YoY and QoQ basis because of: 1) the lower payout policy adopted in 2008; 2) an enlarged shareholder base after the 3Q08 preferential offering; and 3) a partial revenue contribution from the CSAV Lauca, the fourth acquisition completed only in mid-November. We estimate a slight increase in 1Q09 DPU, which marks the first full contribution from CSAV Lauca. At the same time, PST's interest expenses will decrease in sync with the trust's debt repayment schedule. This should also boost DPU on a more gradual basis.
PST is in a comfortable position since the completion of its 3Q08 preferential offering, which raised about US$92.3m. The proceeds were used to partially fund the 2008 vessel acquisitions. PST is currently geared at about 1x debt-to-equity. We expect this to fall to about 0.94x by the end of this year as the trust pays down debt. PST can also sit tight as it has no refinancing needs in the near to medium term. PST also stands out because it is the only Singapore-listed shipping trust without loan-to-market value covenants on its books.
Source: OCBC Investment Research, 22 Jan 2009
Wednesday, January 21, 2009
Shipping trusts at a glance
Source: OCBC Investment Research, 20 Jan 2009
| Rickmers Maritime | Pacific Shipping Trust | First Ship Lease Trust | |
| IPO | 2007 | 2006 | 2007 |
| Sponsor | Rickmers Group | Pacific Intl Lines | Schoeller Holdings/ HSH Nordbank AG/Bayerische Hypo-und Vereinsbank |
| Sponsor role | Acquisition pipeline, ship management | Acquisition pipeline, ship management,customer | Customer, ship management if needed |
| Distributions | USD/quarterly | USD/quarterly | USD/quarterly |
| Pay out policy | Fixed DPU amount | 90% of cash earnings after debt repayment | 100% of cash earnings |
Monday, January 19, 2009
K-REIT: FY2008 Results Summary
FY2008 distributable income +166.7% yoy
Net property income: +40.3% yoy
Portfolio with 99% committed occupancy
Average portfolio gross rental rate: +26.4% yoy
No refinancing requirements until 2011
Distribution Yield: 12.7 (based on closing price of $0.70 as at 31 Dec 2008)
Net property income: +40.3% yoy
Portfolio with 99% committed occupancy
Average portfolio gross rental rate: +26.4% yoy
No refinancing requirements until 2011
Distribution Yield: 12.7 (based on closing price of $0.70 as at 31 Dec 2008)
Friday, January 16, 2009
Ascendas REIT: Short-term pain for long-term gain
Previous day closing price: $1.26
Recommendation: OUTPERFORM (maintained)
Target price: $1.67 (reduced from $2.17)
Market Cap: $1,678m
3QFY09 results were in line with Street and our expectations. DPU of 4.05cts for the quarter grew 13.9% yoy, to form 25.7% of our forecast for FY09. Gross revenue of S$102.3m was up 27.6% yoy, boosted by continued strong rental reversions for Business and Science Parks (+60.6%) and Hi-Tech (+85.8%). YTD DPU of 12.0cts forms 75.9% of our full-year estimate.
Separately, management announced an equity fund-raising via private placements and preferential offerings of up to 354m new units at an issue price of S$1.13-1.16 to raise gross proceeds of S$400m. Sponsor Ascendas will maintain its aggregate unitholding at 27.1%. The private placements conducted via accelerated book-building will be completed by market close on 16 Jan 09. Gross proceeds will be used to repay part of AREIT’s debt and fund current and/or future development projects.
Although the equity raising is within expectations, the timing comes as a surprise as refinancing with bank debt is not an immediate problem. Despite the short-term pain of DPU dilution and share overhang, AREIT will be in a better position to sit out an extended recession with improved asset leverage of 33.7%, down from 42.2%. Fears of breaching asset leverage and the pulling off of short-term revolving lines will be assuaged with its lower gearing.
After the placement, FY09 DPU would drop 0.3% to 15.71cts from 15.76cts. We expect the full impact of dilution in FY10-11, when DPU would decline by 16% and 15% respectively. Yields in FY10 based on our assumed price of equity of S$1.16 would be 11%, vs. yields of 10.2% at the current share price. Following our DPU adjustments, our DDM-derived target price (discount 8.7%) has been lowered to S$1.82. Further, to account for a likely share overhang in the short term, we lower our target price to S$1.67, which is its estimated NAV after dilution. Maintain Outperform given its relative upside to the STI.
Source: CIMB, 16 Jan 2009
Recommendation: OUTPERFORM (maintained)
Target price: $1.67 (reduced from $2.17)
Market Cap: $1,678m
3QFY09 results were in line with Street and our expectations. DPU of 4.05cts for the quarter grew 13.9% yoy, to form 25.7% of our forecast for FY09. Gross revenue of S$102.3m was up 27.6% yoy, boosted by continued strong rental reversions for Business and Science Parks (+60.6%) and Hi-Tech (+85.8%). YTD DPU of 12.0cts forms 75.9% of our full-year estimate.
Separately, management announced an equity fund-raising via private placements and preferential offerings of up to 354m new units at an issue price of S$1.13-1.16 to raise gross proceeds of S$400m. Sponsor Ascendas will maintain its aggregate unitholding at 27.1%. The private placements conducted via accelerated book-building will be completed by market close on 16 Jan 09. Gross proceeds will be used to repay part of AREIT’s debt and fund current and/or future development projects.
Although the equity raising is within expectations, the timing comes as a surprise as refinancing with bank debt is not an immediate problem. Despite the short-term pain of DPU dilution and share overhang, AREIT will be in a better position to sit out an extended recession with improved asset leverage of 33.7%, down from 42.2%. Fears of breaching asset leverage and the pulling off of short-term revolving lines will be assuaged with its lower gearing.
After the placement, FY09 DPU would drop 0.3% to 15.71cts from 15.76cts. We expect the full impact of dilution in FY10-11, when DPU would decline by 16% and 15% respectively. Yields in FY10 based on our assumed price of equity of S$1.16 would be 11%, vs. yields of 10.2% at the current share price. Following our DPU adjustments, our DDM-derived target price (discount 8.7%) has been lowered to S$1.82. Further, to account for a likely share overhang in the short term, we lower our target price to S$1.67, which is its estimated NAV after dilution. Maintain Outperform given its relative upside to the STI.
Source: CIMB, 16 Jan 2009
City Developments to announce financial results on 26 Feb 2009
City Developments Limited will be announcing its unaudited financial results for the year ended 31 December 2008 on 26 February 2009.
By Order of the Board
Shufen Loh @ Catherine Shufen Loh
Enid Ling Peek Fong
Company Secretaries
Date: 15 January 2009
By Order of the Board
Shufen Loh @ Catherine Shufen Loh
Enid Ling Peek Fong
Company Secretaries
Date: 15 January 2009
Friday, January 2, 2009
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