Saturday 16 September 2017

CapitaLand Retail China Trust (CRCT) Q2FY17

Key Item from the announcement
  1. Disposal of CapitaMall Anzhen
    1. Net gain of $31.5 million
    2. Loss of Net Property Income around $14 million
    3. Loss of Income from the reclaim of 4th floor from BHG in CapitaMall Wangjing until it start contribute income in Q2FY18
    4. Loss of Income due to this disposal will be supported by the gain?
  2.  CapitaMall Minzhongleyuan rental catching up from the negative for past 2 years. Rental reversion for Q1FY17 was 35.1% and Q2FY17 64.4%, will it go back to its previous glory where it was ever contribute about $5.2 million or will ever go higher which can support some of the loss of income from CapitaMall Anzhen at least by 1/2
  3. Overall rental reversion is positive (average Q1FY17 was 3.6% and Q2FY17 was 7.1%)
  4. Occupancy rate relatively stable at 96.2% however in Q3 expect to be drop due to Point 1
  5. Average WALE 4.9 Years
  6. Debt, secured the refinancing $375 million that due in Sep and Dec 17 however lack of the new due date.




















Post on CRCT

Saturday 9 September 2017

Frasers Commercial Trust (FCOT) Q3FY17

Overall

  1. Between now to 1Q18 will need to assume lost of income around 18% of gross rental
    1. Are you ready to accept the worst scenario?
  2. WALE for Singapore office is pretty short which around 1 years plus
  3. Based on the average 3-5 years lease period, the likely worst rental reversion may come in FY18 on-ward as office rent was on uptrend from 2014 to 2015
  4. No much catalyst to boost the DPU.

Dividend


Drop to 2.39 cents (which also inclusive of the income support due to the hotel development in China Square) or down about 4% compare to previous quarter however compare to previous financial it is relatively stable.
Q2 the manager has opt to receive 12% fee in unit whereby in Q1 the management opt to receive 100% in cash

Lease Expiry Profile


Till to date, there is no much news on HP on renewing
  1. In the final quarter of FY17 from July to September 2017, major leases expiring include the lease of Hewlett Packard Enterprise Singapore Pte Ltd (“HPE”) at Alexandra Technopark which contributes approximately 5.6% of the portfolio gross rental income. 
  2. In the first quarter of FY18, major leases expiring include the leases of HPE and Hewlett Packard Singapore Pte Ltd at Alexandra Technopark, which contribute approximately 1.5% and 11.1% of the portfolio gross rental income, respectively.
FY17 Lease Profile


Overall Lease Profile

















Debt Profile

  1. No debt maturing until August 2018
  2. Debt expiring in any one financial year no more than S$182 million
  3. 91% of gross borrowings on fixed rate



Friday 8 September 2017

AIMS AMP Capital Industrial REIT (AA REIT) 1Q218

Occupancy History


Q118
FY17
FY16
FY15
FY14
FY13
91.00%
94.60%
93.40%
95.80%
97%
96.10%

Lease


22.9% of lease base on gross rental income will expired
  • 13.5% (14,700 nla) lease will not be renewed which in Q417, the manager has mentioned Cimelia Resource will not renewing its master lease which mean a loss of $2.56m gross rental income and it is account 2% of gross rental income. This one of the cause the occupancy rate to drop to 91%
  • Successfully extended the master lease of CIT Cosmeceutical Pte Ltd (6,255.0 sqm of net lettable area), a top 10 tenant, ahead of its lease expiry in FY2018.
  • Q118 Lease reversion is -4.3%

Dividend



Q1
FY17
FY16
FY15
FY14
FY13
0.025
0.1105
0.1135
0.1107
0.1053
0.1072
-9.50% -2.64% 2.53% 5.13% -1.77%

For Q118, the distribution rate is 94.4%

Debt

Debt for FY18 $69m and $120m has been secured to be extended to 2021 and 2022 hence no debt will need to be refinance for FY18.

Debt for FY19 of $98.4m and $117m will need to be refinance by Nov 18 and Feb 18

In Summary

  1. Renewal  lease reversion is -4.3% and for those new rental and there is no information what is the rate of new rental secured to replace expired rental if it is below the expired rent rate.
  2. The industrial leasing market remains challenging as supply continues to outpace demand in a soft market environment. This is likely to exert further downward pressure on rentals and occupancy
  3. 8 Tuas Avenue 20 has secured the 1st tenant with 10 years lease, with the close proximity the prospect to secure the tenant should be better.
  4. 51 Marsiling Road will be ready in 2Q18 and provide around $3.5m rental, this should cushion the negative rental reversion and lost of Cimelia master lease.
Post on AA Reit

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