General S-REITs Discussion Thread

fascist

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Anybody tracking Soilbuild Business Space REIT?

It plans to buy 72 Loyang Way through a recently closed private placement issuing an additional 111,800,000 units. http://soilbuildreit.listedcompany.com/newsroom/20150422_230621_SV3U_7S5A6EE6TT4PZGCR.1.pdf

From their proposal, it states that it'll probably add S$4.875 mn (see below link; pg 5) to distributable income but with the additional units, wouldn't it dilute the DPU rather than increase it? The additional units issued outweighs the increase in revenue. I don't understand how the sell-side analysts have a buy call on it. Perhaps I am missing something?

http://soilbuildreit.listedcompany.com/newsroom/20150312_182223_SV3U_684MTPFTNZDJAACO.1.pdf

http://internetfileserver.phillip.com.sg/POEMS/Stocks/Research/ResearchCoverage/SG/SoilbuildREIT20150414.pdf
 
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Tornesoul

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Anybody tracking Soilbuild Business Space REIT?

It plans to buy 72 Loyang Way through a recently closed private placement issuing an additional 111,800,000 units. http://soilbuildreit.listedcompany.com/newsroom/20150422_230621_SV3U_7S5A6EE6TT4PZGCR.1.pdf

From their proposal, it states that it'll probably add S$4.875 mn (see below link; pg 5) to distributable income but with the additional units, wouldn't it dilute the DPU rather than increase it? The additional units issued outweighs the increase in revenue. I don't understand how the sell-side analysts have a buy call on it. Perhaps I am missing something?

http://soilbuildreit.listedcompany.com/newsroom/20150312_182223_SV3U_684MTPFTNZDJAACO.1.pdf

http://internetfileserver.phillip.com.sg/POEMS/Stocks/Research/ResearchCoverage/SG/SoilbuildREIT20150414.pdf

The buy call was before the acquisition announcement through private placement units which happened overnight. Market closed, announcement, next morning it was done.

So the analyst report dosent reflect this new information. There is a master lease of 15 years with built-in rental escalation for the new acquisition. (Philipcapital report 16march)

Frankly, im still trying to figure out the JTC rent issue and its resolution, whether its a full purchase of land, thus alleviating the need to pay any rent. And how NAV remains unchanged.
 

Dividends Warrior

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What about other forumers? :) DW!!

In the long run, I feel that both FCT and CMT can capture the growth of regional hubs the government is building towards.

CMT's IMM, JCube and Westgate can ride on the Jurong hub.

FCT's CWP and NP can ride on the Woodlands regional hub and Northpoint City development respectively.

So, yes. I think their DPU will go up over the years but at a slow pace.

The two things holding people back now are the seemingly high prices and the possibility of another recession/crash in 2017 or 2018 (10-year cycle thingy) The tight labout market is not helping too...
 

simon_84

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starfish.starfish

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In the long run, I feel that both FCT and CMT can capture the growth of regional hubs the government is building towards.

CMT's IMM, JCube and Westgate can ride on the Jurong hub.

FCT's CWP and NP can ride on the Woodlands regional hub and Northpoint City development respectively.

So, yes. I think their DPU will go up over the years but at a slow pace.

The two things holding people back now are the seemingly high prices and the possibility of another recession/crash in 2017 or 2018 (10-year cycle thingy) The tight labout market is not helping too...

I like and vested in FCT. Always got crowd at NP and looking at how much they are pricing the north residences, good opportunity there. and FCT now not at highest. Remember it went up to 2.33 before?
 

lzydata

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Anybody tracking Soilbuild Business Space REIT?

It plans to buy 72 Loyang Way through a recently closed private placement issuing an additional 111,800,000 units. http://soilbuildreit.listedcompany.com/newsroom/20150422_230621_SV3U_7S5A6EE6TT4PZGCR.1.pdf

From their proposal, it states that it'll probably add S$4.875 mn (see below link; pg 5) to distributable income but with the additional units, wouldn't it dilute the DPU rather than increase it? The additional units issued outweighs the increase in revenue. I don't understand how the sell-side analysts have a buy call on it. Perhaps I am missing something?

http://soilbuildreit.listedcompany.com/newsroom/20150312_182223_SV3U_684MTPFTNZDJAACO.1.pdf

http://internetfileserver.phillip.com.sg/POEMS/Stocks/Research/ResearchCoverage/SG/SoilbuildREIT20150414.pdf

I hadn't looked into the figures in detail until now - I'm not a unitholder - but you make very good points. The size of Soilbuild REIT's placement was already striking - more so when it doesn't seem to be DPU accretive.

Projected increase in distributable income = $54,875k - 50,169k = $4,706k (+9.4%)
% increase in number of units = 111.8m / 815.750896m = 13.7%.

They originally wanted to place 75m units which would be just nice - same % increase as distributable income.

Anyway I find the whole pro forma financial effects section poorly done. They can say that the increase in number of units in this section is small because at the point of doing the sums they had not done the placement. But see how the acquisition seems to have no effect on pro forma NAV! Someone should ask their IR about this. Fishy.
 

joellimsm

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I was vested in soil build reit since IPO (bought it few months after it fell sharply from initial IPO)

I also wrote about it, as to why it was a great buy then at 70-72 cents

at the current price of 80 cents ++ I think its quite expensive already.. but the yield of close to 8% looks tempting...

the red flags so far I see are

1) JTC mistake... and refusing to taking a straight up write off
2) placement which is diluting to shareholders.. should had been a rights issue instead.. give shareholders a chance to buy the cheaper units instead of giving the free bone to outsiders
3) 15 year lease? on recent acquisition.... too short of a life span already... really no meaning...
when it IPO, i like it cause their industrial offices had 50 year leases... long life span... but 15 years is too short, its a lousy deal for sure.. give the low rental they getting on it (if u get 7% for 15 years... what's profit there to be made??)

Could you explain about the JTC issue? I don't get the "mistake" behind the rental dispute, it seems too simple to be just that.
 

Dividends Warrior

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Singapore, 28 June 2015 – Clarke Quay, Asia’s leading F&B and entertainment hub, is pleased to welcome Zouk – one of the world’s top dance clubs – to its first-rate line-up of over 50 clubs, bars and restaurants. Zouk will be taking up about 31,000 square feet of space in Block C of Clarke Quay. The 24-year-old dance club plans to invest S$10 million in the new club at Clarke Quay and is targeting to open its doors to club goers in June 2016. Further details, including a series of parties to be organised leading up to the new club opening at Clarke Quay, will be announced at a later date.

Mr Ong Kee Leng, Clarke Quay’s Centre Manager, said: “We are pleased that Zouk has found a new home and stomping ground for its faithful following, at Clarke Quay. With one of the highest concentrations of clubs and bars in Singapore, Clarke Quay’s tenant mix is carefully curated to allow each brand to manifest its own unique character while complementing with one another to produce a varied and vibrant visitor experience. As Singapore’s most popular riverfront F&B and entertainment hub and a must-visit destination for locals and tourists to wine, dine and have an enjoyable time, Clarke Quay has been consistently voted by the public as Singapore’s best nightspot, attracting about one million visitors every month. With the addition of around 10 new-to-market brands to Clarke Quay, including Zouk, we are confident of seeing a boost in our visitorship come 2016.”

Located along the iconic Singapore River at the fringe of Singapore’s Central Business District, Clarke Quay is a unique conserved landmark comprising five beautifully restored waterfront godowns, which was the key warehousing facility of Singapore during the colonial era in the 19th century. Currently owned by CapitaLand Mall Trust and managed by CapitaLand Mall Asia, Clarke Quay now basks under a climate controlled canopy lit by coloured lighting, evoking a modern and cosmopolitan ambience amidst tradition and history.

Mr Ong added: “As a key landmark along Singapore River, Singapore’s most famous river and one of the country’s most prominent tourist attractions, Clarke Quay has not only benefitted from national efforts to promote this heritage location; but under the strong property management expertise of CapitaLand, Clarke Quay has also astutely unlocked the potential of riverfront 2 dining and synergised local heritage with premier entertainment to play host to an amazing array of world-class restaurants, wine bars and entertainment outlets.”

Zouk founder Mr Lincoln Cheng said: “We are happy that Zouk has found a new home to move to, where it will continue its legacy for the next generation. We’ve considered every potential venue very carefully – from its location and accessibility to the cost of building it up, and of course whether or not it was feasible for the venue considered to house a superclub. Clarke Quay has always been identified as one of Singapore's key entertainment hubs, and with Zouk being the No. 7 club in the world DJ Mag Top 100 Clubs 2015 global poll, along with all our other pre-requisites being met, we identified Clarke Quay as being the most ideal venue for us to grow our new roots at.”

Last year, Clarke Quay was voted by the public as Singapore’s best nightspot at the AsiaOne People’s Choice Awards organised by AsiaOne, Singapore’s leading news portal. Recently, Clarke Quay was awarded the 2015 Certificate of Excellence by Trip Advisor and identified as one of 50 iconic places to visit in Singapore, based on the travel website’s data on the most reviewed attractions and eateries. New concepts, exciting events.

To keep the visitor experience fresh, new tenants and concepts are introduced regularly. In April this year, Clarke Quay brought in three new-to-market brands at the newly refurbished Block A. These include McGettigan’s, a modern Irish pub and restaurant; Motorino, a popular pizza joint from New York; and Catch!, a new homegrown eatery offering fish and chips. River House at Block A, the oldest building in Clarke Quay that was constructed in the 1880s and turned into a F&B venue since 1993, is currently undergoing renovations and will be unveiling a brand new entertainment and F&B concept in the third quarter this year. Part of Block C, measuring about 57,000 square feet, is currently undergoing asset enhancement and reconfiguration works in preparation for incoming tenants. In addition to Zouk, new tenants taking up the other spaces at Block C will be introduced progressively.

Besides the new brands and concepts, visitors to Clarke Quay can also look forward to a series of exciting events starting with the inaugural Summer Live Music Festival from July to September featuring a stellar line up of local bands each month. A festive October follows right after featuring Clare Quay’s signature events Oktoberfest, Halloween celebrations and a highly anticipated return of the Singapore River Festival.
 

sandwicher

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SINGAPORE: CapitaLand Mall Trust (CMT), Singapore's largest shopping mall trust, will buy Bedok Mall from sponsor CapitaLand in a deal that values the mall at S$780 million.

The 222,500 square foot Bedok Mall, which opened in December 2013, is part of an integrated retail-residential-transport development at Bedok Town Centre that includes the 583-unit condominium Bedok Residences developed by CapitaLand.

The mall’s Basement 2 is directly linked to the Bedok MRT station, while the new air-conditioned Bedok bus interchange is integrated with the mall on Level 2. Bedok Mall's key tenants include Fairprice Finest, UNIQLO and Best Denki.

"The proposed acquisition of Bedok Mall complements CMT’s current portfolio of mainly suburban malls catering to the necessity shopping segment," Mr Wilson Tan, CEO of CapitaLand Mall Trust Management, said in a statement.

"It will increase CMT’s asset size from S$10.2 billion as at 31 March 2015 to about S$11 billion," he added.

CMT's properties include Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building, Plaza Singapura, Bugis Junction, Sembawang Shopping Centre, JCube, Clarke Quay and Raffles City Singapore, in which it has a 40 per cent interest.

CapitaLand Mall Trust Management is an indirect wholly-owned subsidiary of CapitaLand.

I miss this S REIT thread by DW.

Bumping to revive. And yay for CMT!
 
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