Keppel DC Reit ( former K-Reit Asia )

[mojo_]

The owner of the reit manager and it's related associates (the K-group) hold ~75% of the reit units.

Question:
Since it will likely become an interested party transaction later (as this equity raising facilitates K-group's selling it's Marina Bay office props to the reit eventually), will K-group elect not to take part in the voting for this rights issue? (EGM doc not out yet.)

Question:
If they elect not to, will the minority unitholders be savvy enuf to vote down this blatant and underhanded rights proposal?

Question:
If the answers to the 2 above qns are yes and yes, will reit price pop back up again? (buy opportunity? )

Not vested.

[mojo_]

EGM doc just out this morning:
http://info.sgx.com/webcoranncatth.nsf/ ... rfinal.pdf

Answer to the 1st question of previous post in this para:

subject to any prohibitions or restrictions imposed by the relevant regulatory authorities (including
the SGX-ST), it will vote and/or procure that KREI votes (in respect of all Units beneficially owned
by it and/or KREI) in favour of the resolution to approve the Rights Issue

The dominant unitholder and owner of reit mgr is gonna brute force this rights issue..

This rights issue significantly reduces the gearing hence facilitates use of debt for future acquisitions of (higher priced) properties (that could potentially belong to the dominant unitholder)... but with massive dilution for existing minorities now.....

Not vested.

[winston]

Not vested.

K-REIT Asia K-REIT Asia, a Singapore property trust, will report third-quarter results on Tuesday. Keppel Corp and Keppel Land jointly own about 76 percent of K-REIT

[winston]

Not vested.

K-REIT Asia - K-REIT Asia, a Singapore property trust, reported its third quarter distributable income to unit holders rose 18 percent from a year earlier, and its distribution per unit rose 15 percent to 2.69 cents [nSNAD51231].

Keppel Corp and Keppel Land jointly own about 76 percent of K-REIT.

Source: Reuters

[winston]

K-REIT ASIA - K-REIT Asia, a Singapore property trust, reported on Wednesday a 21.1 percent rise in its full-year distributable income to S$70.5 million ($50.39 million), helped by improvement in rentals on its properties.

Keppel Corp and Keppel Land control 76 percent of K-REIT

[millionairemind]

Published July 20, 2010

K-Reit net property income up 49% in Q2, but DPU falls 38%

It buys office, retail space in Sydney building for A$120 million

By EMILYN YAP

K-REIT Asia has acquired office and retail space at 77 King Street in Sydney, Australia, for A$120 million (S$145 million).

Latest purchase: 77 King Street is in Sydney's central business district. K-Reitboughtan 18 storey office block with 130,394 sq ft of space, and part of a retail component with 16,856 sq ft of space

The trust announced the move yesterday - as well as improved results for the second quarter ended June 30. Boosted by recent acquisitions, net property income (NPI) jumped 49 per cent from a year back to $18.4 million. This raised distributable income to unit-holders 26 per cent to $22 million.

Distribution per unit (DPU) was 1.64 cents, falling 38 per cent from 2.64 cents a year ago as the unit base expanded due to a $620 million rights issue last November.

Adjusting for the rights issue, DPU in Q2 last year would have been 1.32 cents. Based on this, DPU would have risen 24 per cent year-on-year.

K-Reit's latest purchase at 77 King Street comes hot on the heels of two other deals. It bought a 50 per cent stake in 275 George Street in Brisbane early this year, and an additional 29 per cent interest in Singapore's Prudential Tower late last year.

77 King Street is in Sydney's central business district and is owned by Kingvest Pty. K-Reit bought an 18-storey office block with 130,394 sq ft of space, and part of a retail component with 16,856 sq ft of space.

Rents at the property are around A$570 per sq metre a year - at the lower end of market rates - but the seller will provide K-Reit with an NPI guarantee of up to A$4 million for six years. The leases also come with fixed annual rental escalations.

The space will be fully leased by the time the acquisition is complete in Q4. Key tenants include CapGemini Australia and Fitch Australia.

K-Reit will fund the purchase with equity from its rights issue and debt. Its aggregate leverage at June 30 was 15.2 per cent, and is expected to rise to 20.4 per cent after the Sydney deal is done.

For the first half ended June 30, K-Reit's NPI surged 40 per cent year on year to $32.3 million. Distributable income to unit-holders rose 20 per cent to $39.8 million.

DPU was 2.97 cents, down 41 per cent from five cents a year ago - also because of the rights issue. Adjusting for that, DPU last year would have been 2.49 cents, reflecting a 19 per cent year-on-year rise.

For the period Jan 1 to June 30, unit-holders will receive a distribution of 2.97 cents on Aug 26.

The chief executive of K-Reit's manager, Ng Hsueh Ling, is upbeat. The Singapore office market is likely to have 'passed the trough' and the Reit has seen more sign-ons, she said at a briefing yesterday.

As at June 30, K-Reit's portfolio occupancy rate was 97.9 per cent, up from 96 per cent a quarter earlier.

But the portfolio's average gross monthly rent dipped slightly to $8.19 psf from $8.30 psf. According to Ms Ng, this was the result of a lease restructuring. K-Reit had negotiated for the extension of some leases and offered slightly lower rents in return, so lease expiries would be spread out better.

[sreitinvestor]

Second quarter 2010 results for K-Reit:
Key Points
* The DPU for the quarter (2Q 2010) was 1.64 cents.
* Total DPU for 1H 2010 was 2.97 cents.
* Distributable income rose by 20.0% year‐on‐year to $39.8 million due mainly to higher net property income (“NPI”) and lower interest expense.
* NPI increased 39.5% year‐on‐year to $32.3 million due mainly to contribution from the 50% interest in 275 George Street and the additional 29% interest in Prudential Tower.
* Distribution Per Unit (“DPU”) for January to June 2010 amounted to 2.97 cents.
* 97.9% portfolio committed occupancy as at 30 June 2010 was higher than Singapore Core CBD occupancy of 93.3%.
* Aggregate leverage level as at 30 June 2010 post debt repayment of $230 million was 15.2%.
* The Transfer Books and Register of Unitholders will be closed at 5.00 pm on 28 July 2010 for the purpose of determining unitholders’ entitlements to distribution.
* The distribution that will be paid on 26 Aug 2010.


http://sreitinvestor.blogspot.com/p/dat ... lease.html

[sreitinvestor]

ACQUISITION OF THE OFFICE TOWER AT 77 KING STREET, SYDNEY, AUSTRALIA
Key Points
* the Reit has entered into a contract with Kingvest Pty Limited for the acquisition of a 100% interest in Lots 1, 3, 4 and 5, 77 King Street, Sydney, Australia.
* 77 King Street is a prime commercial building located in the heart of Sydney’s Central Business District (“CBD”), in close proximity to major CityRail Stations – Wynyard, Martin Place and Town Hall Stations. It has a net lettable area of 170,662 sq ft across 18 levels of Grade A office space and five levels of quality retail space.
* The purchase consideration of the Property is A$120.0 million or approximately S$145.0 million.
* An independent property valuer commissioned by K-REIT Australia to value the Property has valued it at A$120.0 million in the valuation report dated 16 July 2010.
* The FY 2009 pro forma net profit attributable to the Acquisition is approximately A$3.1 million (approximately S$3.7 million ).
* Pro Forma Net Asset Value (“NAV”) will remain the same at S$1.47 before and after the acquisition.
* Pro Forma Distribution per Unit will increase from 5.28 to 5.63 cents after the acquisition based on K-REIT Asia’s DPU for FY 2009, and as if K-REIT Asia had completed the Acquisition on 1 January 2009.
* The Acquisition will be funded by a combination of debt and equity with the proceeds from the rights issue completed by K-REIT Asia in November 2009.
* K-REIT Asia’s aggregate leverage is expected to increase from 15.2% to 20.4% after the completion of the Acquisition.

[winston]

Not vested. From Kim Eng:-

Yield 4.6%; P/NTA = 0.89

K‐REIT Asia (KREIT SP, $1.29, NOT RATED)

K‐REIT recently acquired its second office property in Australia, bringing the attributable NLA of its portfolio to 1.7m sq ft.

With its relatively low gearing, K‐REIT will be able to make acquisitions worth $550‐
825m before raising new equity.

We believe it is just a matter of time before it acquires Keppel Land’s one‐third stake in the Marina Bay Financial Centre.

http://www.remisiers.org/cms_images/res ... t_Asia.pdf

[sreitinvestor]

Third quarter 2010 results for K-Reit:
Key Points
* The DPU for the reporting quarter is 1.69 cents.
* Distributable income rose 22.2% year-on-year to $62.5 million due mainly to higher net property income (NPI) and lower interest expense.
* NPI increased 40.5% year-on-year to $49.8 million due mainly to income contribution from the 50% interest in 275 George Street and additional 29% interest in Prudential Tower.
* Distribution Per Unit (DPU) for January to September 2010 amounted to 4.65 cents.
* Singapore property portfolio committed occupancy of 99.1% as at 30 September 2010 is higher than Singapore core CBD occupancy of 95.2%.


http://sreitinvestor.blogspot.com/p/dat ... lease.html