not vested
Suntec REIT (SUN SP, Neutral, TP SGD1.78) reported a lower than expected set of 1Q14 results with DPU of 2.229cents (flat YoY), 8% lower vs DMG estimates of 2.42cents.
Main drag on the results appears to be the ongoing Phase 3 AEI works in Suntec Retail and lower than expected leasing rates for completed Phase 2.
As expected, Suntec's Office portfolio continues to do well with overall occupancy of 99.4%, in-line with its Commercial Office peers in the sector.
Analyst briefing was well attended but yielded nothing new in terms of disclosures.
We maintain our FY14F DPU of 9.68cents as Phase 2 of its retail AEI should be opened by end of 2Q14 and should help close the earnings gap.
Stock currently trades at 5.6% FY14F yield, maintain our NEUTRAL rating on Suntec.
Source: DMG
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Suntec REIT
Re: Suntec REIT
by winston » Fri Apr 25, 2014 10:21 pm
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Re: Suntec REIT
by winston » Wed Jul 23, 2014 8:46 am
not vested
Looking forward to Phase 3
HOLD - Downgrade | S$1.86 /TP S$1.89
Mkt.Cap:US$3,728.00m | Avg.Daily Vol:US$12.09m | Free Float:93.80%
SUN’s 2Q14 results were in line with expectations, with 2Q DPU accounting for 25% and 1H14 forming 50% of our full-year forecasts. Though no details were revealed for Phase 3 of the AEI, which is scheduled to be completed in 4Q14, we remain confident of the company’s outlook.
As the stock is trading at 5.6% FY15 yield vs. the average of 5.9% for its peers, we believe that SUN is fairly valued. As such, we downgrade it to Hold from Add with a slightly higher DDM-based (discount rate: 8.0%) target price. Our FY14-16 estimates rise by 1.5-2.0% as we fine-tune our occupancy and passing rent assumptions.
Results in line
2Q14 results were in line with our estimates, with revenue and distributable income accounting for 24% and 25% of our full-year estimates respectively. During this quarter, approximately 0.2Scts was distributed – an action within expectations as Phase 2 of Suntec City AEI contributed to the earnings for less than one month while Phase 3 was closed for renovation. As a result, 2Q14 DPU was largely flat (+0.8%) yoy.
No details for Phase 3 AEI
The portfolio remained stable with the occupancy rate for the Suntec office at 99.4% while the combined occupancy of Phase 1 and 2 of Suntec City AEI was reported at 97.6%, indicating that Phase 2 occupancy remained unchanged qoq. Although no further details were revealed on the occupancy of Phase 3, citing leasing activities as being still underway, the management guided that a clearer picture will be available in 3Q14. The passing rent for Phase 1 and 2 remained strong, at S$12.57 psf/month.
Downgrade to Hold
Assuming an overall occupancy rate of 95% and a passing rent of S$13.00 psf/mth, we have raised our earnings estimates for FY14-16 by 1.5-2.0%. Based on past history, we remain confident that the management will deliver Phase 3 with good commitment rates and higher rental rates than Phase 2 (c.S$12.15 psf/mth).
However, with SUN currently offering an FY15 yield of 5.6%, compared to 6.0% and 5.8% for the office and retail REITs respectively, we are of the view that SUN is fairly valued. Hence, we downgrade the stock to Hold.
Previous "Suntec REIT" reports...
24/4/14 Co.Results The signs of strength (AD, S$1.74 /TP:1.83)
19/3/14 Co.Flash Lower dividends for lower gearing (AD, S$1.69 /TP:1.83)
24/1/14 Co.Results A display of growth potential (AD, S$1.59 /TP:1.96)
Source: CIMB
Looking forward to Phase 3
HOLD - Downgrade | S$1.86 /TP S$1.89
Mkt.Cap:US$3,728.00m | Avg.Daily Vol:US$12.09m | Free Float:93.80%
SUN’s 2Q14 results were in line with expectations, with 2Q DPU accounting for 25% and 1H14 forming 50% of our full-year forecasts. Though no details were revealed for Phase 3 of the AEI, which is scheduled to be completed in 4Q14, we remain confident of the company’s outlook.
As the stock is trading at 5.6% FY15 yield vs. the average of 5.9% for its peers, we believe that SUN is fairly valued. As such, we downgrade it to Hold from Add with a slightly higher DDM-based (discount rate: 8.0%) target price. Our FY14-16 estimates rise by 1.5-2.0% as we fine-tune our occupancy and passing rent assumptions.
Results in line
2Q14 results were in line with our estimates, with revenue and distributable income accounting for 24% and 25% of our full-year estimates respectively. During this quarter, approximately 0.2Scts was distributed – an action within expectations as Phase 2 of Suntec City AEI contributed to the earnings for less than one month while Phase 3 was closed for renovation. As a result, 2Q14 DPU was largely flat (+0.8%) yoy.
No details for Phase 3 AEI
The portfolio remained stable with the occupancy rate for the Suntec office at 99.4% while the combined occupancy of Phase 1 and 2 of Suntec City AEI was reported at 97.6%, indicating that Phase 2 occupancy remained unchanged qoq. Although no further details were revealed on the occupancy of Phase 3, citing leasing activities as being still underway, the management guided that a clearer picture will be available in 3Q14. The passing rent for Phase 1 and 2 remained strong, at S$12.57 psf/month.
Downgrade to Hold
Assuming an overall occupancy rate of 95% and a passing rent of S$13.00 psf/mth, we have raised our earnings estimates for FY14-16 by 1.5-2.0%. Based on past history, we remain confident that the management will deliver Phase 3 with good commitment rates and higher rental rates than Phase 2 (c.S$12.15 psf/mth).
However, with SUN currently offering an FY15 yield of 5.6%, compared to 6.0% and 5.8% for the office and retail REITs respectively, we are of the view that SUN is fairly valued. Hence, we downgrade the stock to Hold.
Previous "Suntec REIT" reports...
24/4/14 Co.Results The signs of strength (AD, S$1.74 /TP:1.83)
19/3/14 Co.Flash Lower dividends for lower gearing (AD, S$1.69 /TP:1.83)
24/1/14 Co.Results A display of growth potential (AD, S$1.59 /TP:1.96)
Source: CIMB
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Re: Suntec REIT
by winston » Wed Jul 23, 2014 5:34 pm
not vested
Suntec Reit (S$1.855)
Q2 DPU up despite equity dilution
Suntec Reit announced a DPU of 2.266 Singapore cents for its 2Q ended June 30, 2014, to be paid on Aug 22.
Net property income rose 64.9% to S$46.1mil, on the back of a 45.1% increase in gross revenue to S$68.1mil, mainly due to the opening
of Suntec Singapore Convention & Exhibition Centre following the completion of its refurbishment, although a large part of Suntec City mall has remained closed for renovations in the quarter.
As at end‐June 2013, the overall commited occupancy for its office and retail portfolio stood at 99.7% and 97.6% respectively.
Source: AmFraser
Suntec Reit (S$1.855)
Q2 DPU up despite equity dilution
Suntec Reit announced a DPU of 2.266 Singapore cents for its 2Q ended June 30, 2014, to be paid on Aug 22.
Net property income rose 64.9% to S$46.1mil, on the back of a 45.1% increase in gross revenue to S$68.1mil, mainly due to the opening
of Suntec Singapore Convention & Exhibition Centre following the completion of its refurbishment, although a large part of Suntec City mall has remained closed for renovations in the quarter.
As at end‐June 2013, the overall commited occupancy for its office and retail portfolio stood at 99.7% and 97.6% respectively.
Source: AmFraser
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Re: Suntec REIT
by winston » Thu Oct 23, 2014 8:43 am
not vested
Slow commitment amid stability
SUN SP / SUNT.SI | HOLD - Maintained | S$1.80 /TP S$1.89
Mkt.Cap:US$3,538.00m | Avg.Daily Vol:US$8.29m | Free Float:93.80%
SUN’s results were in line with expectations, with 3Q14 DPU accounting for 26% and 9M14 forming 75% of our full-year forecast. Although the portfolio remained stable, the pre-commitment rate for Phase 3 of the AEI at Suntec City was slow.
Consequently, we have cut our FY15-16 earnings forecasts by c.1% as we have fine-tuned our occupancy assumptions. Maintain Hold rating with an unchanged DDM-based (discount rate: 8.0%) target price of S$1.89.
Stable quarter
9M14 results were in line with our expectations, with revenue and DPU accounting for 72% and 75% of our full-year estimates respectively. During 3Q14, the amount available for distribution from operations grew by 20.9% yoy, reflecting the completion of Suntec City Phase 2 and additional contribution from Leighton Tower in North Sydney.
At first glance, office leases secured during the quarter were weaker at S$8.24 psf/mth (vs. S$8.98 psf/mth in 2Q14); however, this was mainly due to the early renewal of a lease held by an anchor tenant of 150,000 sq ft, which was due to expire in FY15. Excluding this lease, rents achieved were higher at c.S$9psf/mth, reflecting the continual strengthening of the office market.
Phase three pre-commitment slow
SUN’s portfolio remained stable with the office segment achieving full occupancy, and Phase 1 & 2 of Suntec City mall recording a committed occupancy of 98.9% with a passing rent of S$12.59 psf/mth (vs. S$12.57 psf/mth in 2Q14). On the other hand, pre-commitment rate in Phase 3 of Suntec City’s AEI was slow on the back of a sluggish retail rental market, achieving only 60% as at end-Sep 14. Although no details were revealed on the committed rent of Phase 3, management guided that the 10.1% ROI target for all three phases of AEI remains intact.
Maintain Hold
On the back of a slightly slower-than-expected pre-commitment rate in Phase 3, we have lowered our occupancy forecasts from 95% to 90%. This reflects a pre-commitment rate of 70% in Phase 3 by the end of the year; all three phases will commence operations by 1Q15.
On this basis, we have cut our FY15-16 forecasts by c.1% and maintained our Hold rating on SUN with an unchanged target price of S$1.89.
Previous "Suntec REIT" reports...
22/7/14 Co.Results Looking forward to Phase 3 (HD, S$1.86 /TP:1.89)
24/4/14 Co.Results The signs of strength (AD, S$1.74 /TP:1.83)
19/3/14 Co.Flash Lower dividends for lower gearing (AD, S$1.69 /TP:1.83)
Source: CIMB
Slow commitment amid stability
SUN SP / SUNT.SI | HOLD - Maintained | S$1.80 /TP S$1.89
Mkt.Cap:US$3,538.00m | Avg.Daily Vol:US$8.29m | Free Float:93.80%
SUN’s results were in line with expectations, with 3Q14 DPU accounting for 26% and 9M14 forming 75% of our full-year forecast. Although the portfolio remained stable, the pre-commitment rate for Phase 3 of the AEI at Suntec City was slow.
Consequently, we have cut our FY15-16 earnings forecasts by c.1% as we have fine-tuned our occupancy assumptions. Maintain Hold rating with an unchanged DDM-based (discount rate: 8.0%) target price of S$1.89.
Stable quarter
9M14 results were in line with our expectations, with revenue and DPU accounting for 72% and 75% of our full-year estimates respectively. During 3Q14, the amount available for distribution from operations grew by 20.9% yoy, reflecting the completion of Suntec City Phase 2 and additional contribution from Leighton Tower in North Sydney.
At first glance, office leases secured during the quarter were weaker at S$8.24 psf/mth (vs. S$8.98 psf/mth in 2Q14); however, this was mainly due to the early renewal of a lease held by an anchor tenant of 150,000 sq ft, which was due to expire in FY15. Excluding this lease, rents achieved were higher at c.S$9psf/mth, reflecting the continual strengthening of the office market.
Phase three pre-commitment slow
SUN’s portfolio remained stable with the office segment achieving full occupancy, and Phase 1 & 2 of Suntec City mall recording a committed occupancy of 98.9% with a passing rent of S$12.59 psf/mth (vs. S$12.57 psf/mth in 2Q14). On the other hand, pre-commitment rate in Phase 3 of Suntec City’s AEI was slow on the back of a sluggish retail rental market, achieving only 60% as at end-Sep 14. Although no details were revealed on the committed rent of Phase 3, management guided that the 10.1% ROI target for all three phases of AEI remains intact.
Maintain Hold
On the back of a slightly slower-than-expected pre-commitment rate in Phase 3, we have lowered our occupancy forecasts from 95% to 90%. This reflects a pre-commitment rate of 70% in Phase 3 by the end of the year; all three phases will commence operations by 1Q15.
On this basis, we have cut our FY15-16 forecasts by c.1% and maintained our Hold rating on SUN with an unchanged target price of S$1.89.
Previous "Suntec REIT" reports...
22/7/14 Co.Results Looking forward to Phase 3 (HD, S$1.86 /TP:1.89)
24/4/14 Co.Results The signs of strength (AD, S$1.74 /TP:1.83)
19/3/14 Co.Flash Lower dividends for lower gearing (AD, S$1.69 /TP:1.83)
Source: CIMB
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Re: Suntec REIT
by winston » Mon Nov 24, 2014 8:09 pm
not vested
Time: 4:59PM
Exchange: SGX
Stock: Suntec Reit(T82U)
Signal: Resistance - Breakout with High Volume
Last Done: $1.92
Source: UOBKH
Time: 4:59PM
Exchange: SGX
Stock: Suntec Reit(T82U)
Signal: Resistance - Breakout with High Volume
Last Done: $1.92
Source: UOBKH
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Re: Suntec REIT
by winston » Wed Nov 26, 2014 7:36 pm
not vested
A huge volume of 129.3m units in Suntec REIT (SUN SP) took place just minutes after the 5pm normal closing yesterday, sending the counter to the top of the most active stock list. In all, 180.2m units changed hands - nine times Monday's trading volume.
The unit price, too, rose three cents to hit a one-year high of SGD1.935 - the same price at which the surprise trades were done during the adjustment period after normal closing. This could be due to Suntec REIT replacing Olam International in the MSCI Singapore Index from Wed onwards.
On price performance, Suntec REIT is up 25.6 year-to-date and is the best-performing REIT this year.
We are overall optimistic on its AEI’s efforts at Suntec City and remain confident that it will achieve average rentals above its original target of SGD12.59 psf/mth, following the completion of all three phases at Suntec City Mall.
Recall that Suntec City Phase 2 AEI opened on 1 Jun and achieves 99.4% occupancy in 3Q14, while Phase 1 attained full occupancy. Phase 3 is on schedule to complete by year-end and is currently 60% pre-committed.
We forecast Suntec’s DPU to grow at a CAGR of 3.4% over the next three years.
We believe that Suntec’s near-term share price performance will be supported by the completion of its AEI at Suntec City Mall. and have a BUY recommendation presently with a DDM-derived TP of SGD2.00 (cost of equity = 7.0%; Tg = 2%).
Source: DMG
A huge volume of 129.3m units in Suntec REIT (SUN SP) took place just minutes after the 5pm normal closing yesterday, sending the counter to the top of the most active stock list. In all, 180.2m units changed hands - nine times Monday's trading volume.
The unit price, too, rose three cents to hit a one-year high of SGD1.935 - the same price at which the surprise trades were done during the adjustment period after normal closing. This could be due to Suntec REIT replacing Olam International in the MSCI Singapore Index from Wed onwards.
On price performance, Suntec REIT is up 25.6 year-to-date and is the best-performing REIT this year.
We are overall optimistic on its AEI’s efforts at Suntec City and remain confident that it will achieve average rentals above its original target of SGD12.59 psf/mth, following the completion of all three phases at Suntec City Mall.
Recall that Suntec City Phase 2 AEI opened on 1 Jun and achieves 99.4% occupancy in 3Q14, while Phase 1 attained full occupancy. Phase 3 is on schedule to complete by year-end and is currently 60% pre-committed.
We forecast Suntec’s DPU to grow at a CAGR of 3.4% over the next three years.
We believe that Suntec’s near-term share price performance will be supported by the completion of its AEI at Suntec City Mall. and have a BUY recommendation presently with a DDM-derived TP of SGD2.00 (cost of equity = 7.0%; Tg = 2%).
Source: DMG
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Re: Suntec REIT
by behappyalways » Thu Dec 11, 2014 9:53 am
Stellar Suntec REIT burdened by intensifying retail headwinds
http://sbr.com.sg/commercial-property/n ... c9NPn.dpuf
http://sbr.com.sg/commercial-property/n ... c9NPn.dpuf
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Re: Suntec REIT
by winston » Thu Dec 11, 2014 6:59 pm
not vested
Suntec REIT: Had a good run, downgrade to HOLD
We expect Suntec REIT to be a beneficiary of the robust momentum in Singapore’s prime office sector, although rental growth is likely to moderate from 2015.
The situation appears less sanguine for its retail segment, in our view, underpinned by industry headwinds. This has resulted in the relatively lacklustre committed occupancy rate of 60% (as at 30 Sep 2014) for Suntec City Mall’s Phase 3 development.
We see downside risks to our FY15 gross revenue and DPU forecasts if the situation remains sluggish.
Following Suntec REIT’s strong share price outperformance YTD, we believe the potential for further yield compression could be limited at this juncture.
Hence, we downgrade Suntec REIT to HOLD, with an unchanged fair value estimate of S$1.90.
Source: OCBC
Suntec REIT: Had a good run, downgrade to HOLD
We expect Suntec REIT to be a beneficiary of the robust momentum in Singapore’s prime office sector, although rental growth is likely to moderate from 2015.
The situation appears less sanguine for its retail segment, in our view, underpinned by industry headwinds. This has resulted in the relatively lacklustre committed occupancy rate of 60% (as at 30 Sep 2014) for Suntec City Mall’s Phase 3 development.
We see downside risks to our FY15 gross revenue and DPU forecasts if the situation remains sluggish.
Following Suntec REIT’s strong share price outperformance YTD, we believe the potential for further yield compression could be limited at this juncture.
Hence, we downgrade Suntec REIT to HOLD, with an unchanged fair value estimate of S$1.90.
Source: OCBC
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Re: Suntec REIT
by behappyalways » Mon Jan 26, 2015 9:44 am
Low occupancy at Suntec City Mall Phase 3 threatens stellar Suntec REIT
http://sbr.com.sg/commercial-property/m ... untec-reit
http://sbr.com.sg/commercial-property/m ... untec-reit
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Re: Suntec REIT
by winston » Sun May 10, 2015 7:51 am
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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