Suntec REIT

[grandmaster89]

Wouldn't the decrease in interest expense offset the impact brought about by the dilution to its distributable income?

[winston]

Not vested. From CIMB:-

Suntec REIT (S$1.27) - Private placement to pare down debt

Maintain Outperform; target price down to S$1.51 (from S$1.59). Suntec REIT
completed a private placement of 128.5m units on 11 Dec that was fully subscribed
at an issue price of S$1.19/unit. Gross proceeds of S$153m would be chiefly used
to pare down debt, lowering its gearing to 31.5% from 34.3%.

Our FY10-11 DPU estimates have been diluted by 5% and our DDM target price lowered in tandem to S$1.51 (from S$1.59) with an intact discount rate of 8.1%. We are positive on this placement in the context of the manager’s overall capital management which
minimises dilution for unitholders.

We continue to like Suntec REIT for its retail catalysts in 2010 and relative attractiveness (0.64x P/BV and forward yields of 7.3%) vs. its closest peer CCT (0.79x P/BV and yields of 5.6%).%, terminal growth: 2%) with a 10% discount applied to account for forex risks.

[winston]

Not vested.

Singapore Hot Stocks-Suntec REIT up on acquisition hopes

SINGAPORE, March 2 (Reuters) - The benchmark Straits Times Index <.FTSTI> was 0.27 percent higher as of 0810 GMT on Tuesday.

The following stocks were on the move:
** SUNTEC REAL ESTATE INVESTMENT TRUST UP ON NEWSPAPER REPORT

Shares of Suntec Real Estate Invesment Trust climbed as much as 3.9 percent to S$1.33 after the Business Times reported that the trust is planning to buy the Suntec International Convention and Exhibition Centre.

Suntec, which is managed by ARA Asset Management , currently has a 20 percent stake in a private real estate fund that bought the Suntec convention centre for S$235 million last year.

The REIT already owns most of the mall and office space at Suntec City, a complex at the edge of Singapore's central business district which also houses the conventional centre.

"It is a good move because Suntec has a wonderful convention area and a great catchment area," said a local broker.

At around 0810 GMT, shares of Suntec REIT were up 2.3 percent at S$1.32 with over 11 million shares changing hands. ARA was down 1.8 percent at S$1.08 Singapore cents with over half a million shares traded.

[winston]

Not vested. From OCBC:-

Why Suntec REIT? Suntec has a compelling story - its retail portfolio has been consistently under-appreciated by the market, in our view, considering the opening of two new Circle Line MRT stations at Suntec City Mall and the revitalization of the Marina Bay area.

These events could be a catalyst for traffic to the mall. Negative office rent reversions are possible in 2010, impacting distributable income - but this risk has been priced into current valuations, in our opinion.

In fact, we believe sentiment towards office REITs may tilt positive over 2010 on increasing leasing activity, active supply management by office landlords (with older buildings converted for residential use), and a slowing rate of decline in office rents.

[winston]

Not vested. From OCBC:-

Suntec REIT: Positive retail developments and opportunities

Summary: The new Circle Line MRT stations could boost pedestrian traffic to Suntec REIT’s retail malls. Retail trends are also positive with MasterCard cardholders spending a total of US$44.3m over the first weekend of the Great Singapore Sale (GSS), up 18% YoY. Consumer confidence is also up.

We expect the S-REIT sector to employ asset enhancement initiatives as a key strategy to grow portfolio income this year. Suntec’s AEI plans for Park Mall have been on the backburner due to the financial crisis and this might be an opportune year to re-launch the initiative.

These positive retail developments are, of course, offset by the challenges faced by Suntec’s office portfolio. Still, valuations are attractive from a price-to-book perspective. Maintain BUY and S$1.44 fair value (17.7% estimated total return). (Meenal Kumar)

[sreitinvestor]

Second quarter 2010 results for SUNTEC Reit:
Key Points
* The DPU for the quarter (2Q 2010) is 2.528 cents.
* The Books Closure Date is on 3 Aug 2010.
* Unitholders can expect to receive their 2Q 2010 DPU on 27 August 2010.


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

[winston]

Not vested. From Kim Eng:-

Suntec REIT (SUN SP, $1.51, NOT RATED)

Suntec REIT recently secured a $700m term loan facility at an attractive all‐in interest margin of only 1.5%, demonstrating its sound standing with banks.

The money will be used to refinance portions of debt maturing in 2011 and 2012. The REIT currently trades at a relatively attractive DPU yield of about 6.5% and a near‐term catalyst could be the acquisition of a one‐third stake in the Marina Bay Financial Centre.

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

[Chinaman]

Well, Suntec Reit no doubt is a good dividend stock , this 1 giving me one of the highest percentage profit..but the question is now at 1.52 is quite expensive..i wouldn't enter at this price....hoping to let go at 1.60...gd luck.

[winston]

Suntec Reit's Q3 DPU at 2.502 cts
By ANGELA TAN

ARA Trust Management (Suntec), the manager of Suntec Real Estate Investment Trust (Suntec REIT), has announced a distribution income of $46.23 million for the period 1 July to 30 September 2010 (3Q FY10), which is a dip of 3.2 per cent compared to the quarter ended 30 September 2009 (3Q FY09).


The distribution per unit for the quarter amounted to 2.502 Singapore cents at an annualised yield of 6.6 per cent.

For 3Q FY10, Suntec REIT achieved gross revenue of S$63.2 million, and net property income of S$50.6 million.

Gross office revenue achieved for the quarter was S$30.0 million, comprising Suntec City office revenue of S$27.8 million and Park Mall office revenue of S$2.2 million. As at 30 September 2010, the committed occupancy of Suntec City Office improved further to 98.1 per cent compared to last quarter, whilst the committed occupancy of Park Mall office and One Raffles Quay stood at 97.5 per cent and 100 per cent respectively as at 30 September 2010.

Hence, the committed occupancy for the overall office portfolio strengthened further to 98.5 per cent.

Gross retail revenue achieved for the quarter was S$33.2 million, comprising Suntec City retail revenue of S$27.2 million and revenue from Park Mall and Chijmes of S$6.0 million.

The committed retail passing rent was S$10.67 psf per month, S$7.44 psf per month and S$10.71 psf per month for Suntec City Mall, Park Mall and Chijmes respectively. Revenue from other income initiatives for the first nine months of 2010 increased 8.3% year-on-year to S$5.27 million.

The committed occupancy of Suntec City Mall stood at 98.0 per cent as at 30 September 2010 from 96.4 per cent in the last quarter, whilst the committed occupancy of Park Mall and Chijmes stood at 100 per cent and 90 per cent respectively. The overall committed occupancy for the retail portfolio thus stood at 97.6 per cent as at 30 September 2010.

http://www.businesstimes.com.sg/sub/lat ... 92,00.html?

[winston]

Not vested. From OCBC:-

Yield 7%? Discount 20% to RNAV ?

Maintain BUY. We have revised our earnings estimates to incorporate the proposed acquisition, which we assume is completed on 01 Jan 2011.

We have revised our issue price assumption down from S$1.50 per unit to S$1.30 per unit, but our fair value estimate slips only marginally from S$1.64 to S$1.63 due to the lower-than-expected cost of debt.

Suntec is one of the best proxies, in our view, to the office market / revitalization of the Marina Bay area today in terms of both exposure and valuations. With an estimated total return of 19.1%, maintain BUY.

http://www.remisiers.org/cms_images/Sun ... 19-OIR.pdf