MIREIT’s credit rating was downgraded by Moody’s to B1. The main reason for the downgrade is the impending refinancing need of MIREIT for its debt of $220.8 million due in April 2009. This is also our main concern regarding MIREIT. Although we understand the REIT manager has been in talks with various parties, nothing has been announced thus far.
Financial results are in line with expectations. Revenue for 3QFY09 is up 54.0%, net property income increases 49.1% and DPU increases 22.4%. MIREIT has maintained a quarterly DPU of 2.35 cents for FY09. Quarterly payout ratio was 92.7%, 87.7% and 98.5%. We believe the REIT manager has anticipated higher operating cost and therefore has maintained a fixed quantum of quarterly DPU so that there is buffer to withstand any volatility. With the retained cash on hand, MIREIT should be able to maintain at least the same amount of DPU for 4QFY09.
Shares: 261.716m
Market Cap: S$69.35m
Trailing PE: 1.65
Forward PE: 3.73
P/BV: 0.27
52-week Price Range: $0.225 - $1.20
52-week PE Range: 0.77 – 7.25
Major Shareholder: MCK Ltd – 15.21%; UBS AG – 5.75%
Dividend yield: 2008 - 28.3%; 2009F - 36.3%; 2010F - 32.4%
Source: Phillip Securities, 12 Feb 2009
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment