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Ascendas REIT is range bound.
http://mystocksinvesting.com/singapore-stocks/capitamall-trust/is-it-time-to-invest-in-singapore-reit-to-build-up-passive-i
Singapore REIT is still weak. Same to Ascendas REIT.
http://mystocksinvesting.com/singapore-stocks/capitamall-trust/is-it-a-good-time-to-buy-singapore-reit-now/
Waiting patiently for the correction to over for this Ascendas REIT...
http://mystocksinvesting.com/singapore-reits/singapore-reits-comparison-table-for-dividend-investing-as-passive-income-june-2013/
Macquarie is listing put warrants over CMA and AREIT this morning.
This is the first time Macquarie has listed a warrant over Ascendas Real Estate Investment Trust (AREIT). AREIT is the largest business and industrial trust listed on the SGX, with a portfolio of 101 properties in Singapore and a business park property in China.
Recently on April 15, it announced after market its full year 2013 results, which came in at $305.6mn, a 8.5% year-on-year increase and in line with analysts’ estimates. On the back of these results, Macquarie Equities Research (MER) released a research report on the same day stating that AREIT at $2.78 is trading at a Full year 2014E yield of 5.3% and price to book ratio of 1.45x, which appear expensive versus its 10-yr mean of 6.7% and 1.32x. Thus, while it continues to be the dominant player within Singapore’s industrial property sector, MER prefers office SREITs over AREIT and has a ‘Neutral’ view maintained on the stock, with a 12-month target price of $2.60 (Neutral). MER’s target price is 5.5% below AREIT’s closing price on Tuesday at $2.75.
Only AREIT put warrant in the market
Since the report, AREIT has pulled back 4.2%, but is nevertheless still trading at its highest level in almost 6 years, since July 2007. Investors who believe that AREIT will see a further pullback in the short term may consider today’s newly listed put warrant,
It is the only put available over AREIT in the warrant market. This warrant tend to gain in price when AREIT’s share price falls, as puts have an inverse relationship with the underlying share price movements.
CMA back above $2 on strong 1Q13 results
Another property name that recently announced its result earnings was CapitaMalls Asia, the retail property unit of CapitaLand that develops, owns and manages shopping malls in Asia. CMA had posted a “strong first quarter” result of $73.2mn in net profits, which was a 9.6% increase from the same period the previous year. CMA’s CEO attributed its strong results to record growth in key markets and continue to be positive about the long-term retail prospects in these key markets.
Buyers brought CMA’s share price back above the $2 mark on the back of its earnings announcement. The stock had on April 17 fallen below the $2 mark – a level it had hovered around for the most of this year, after crossing it for the first time in two years on January 3. It closed at $2.10 on Tuesday.
Investors holding the view that CMA might backtrack to trade below the $2 mark again may wish to consider this morning’s two new put warrants over CMA.
Source: Macquarie Research - 2 May 2013
This is the first time Macquarie has listed a warrant over Ascendas Real Estate Investment Trust (AREIT). AREIT is the largest business and industrial trust listed on the SGX, with a portfolio of 101 properties in Singapore and a business park property in China.
Recently on April 15, it announced after market its full year 2013 results, which came in at $305.6mn, a 8.5% year-on-year increase and in line with analysts’ estimates. On the back of these results, Macquarie Equities Research (MER) released a research report on the same day stating that AREIT at $2.78 is trading at a Full year 2014E yield of 5.3% and price to book ratio of 1.45x, which appear expensive versus its 10-yr mean of 6.7% and 1.32x. Thus, while it continues to be the dominant player within Singapore’s industrial property sector, MER prefers office SREITs over AREIT and has a ‘Neutral’ view maintained on the stock, with a 12-month target price of $2.60 (Neutral). MER’s target price is 5.5% below AREIT’s closing price on Tuesday at $2.75.
Only AREIT put warrant in the market
Since the report, AREIT has pulled back 4.2%, but is nevertheless still trading at its highest level in almost 6 years, since July 2007. Investors who believe that AREIT will see a further pullback in the short term may consider today’s newly listed put warrant,
It is the only put available over AREIT in the warrant market. This warrant tend to gain in price when AREIT’s share price falls, as puts have an inverse relationship with the underlying share price movements.
CMA back above $2 on strong 1Q13 results
Another property name that recently announced its result earnings was CapitaMalls Asia, the retail property unit of CapitaLand that develops, owns and manages shopping malls in Asia. CMA had posted a “strong first quarter” result of $73.2mn in net profits, which was a 9.6% increase from the same period the previous year. CMA’s CEO attributed its strong results to record growth in key markets and continue to be positive about the long-term retail prospects in these key markets.
Buyers brought CMA’s share price back above the $2 mark on the back of its earnings announcement. The stock had on April 17 fallen below the $2 mark – a level it had hovered around for the most of this year, after crossing it for the first time in two years on January 3. It closed at $2.10 on Tuesday.
Investors holding the view that CMA might backtrack to trade below the $2 mark again may wish to consider this morning’s two new put warrants over CMA.
Source: Macquarie Research - 2 May 2013
4QFY13 results below consensus- - NPI declined 4.3% q/q to $100.1m - 4QFY13 DPU declined 16% q/q to 3.06¢ FY13 DPU increased 1.3% y/y to 13.7¢ - Portfolio occupancy down 0.3ppt q/q to 94.0% - Gearing at 28.4% - Dividend yield 4.8% Weak results driven by higher i) property tax and ii) maintenance and conservancy costs 3 projects unveiled and funding of $408m committed (of which $206.5m yet to be funded) i) Development of DBS Asia Hub Phase II (7,000 sqm to be added to existing building) ii) AEI at Techpoint iii) AEI at 5 Toh Guan Road 21% of revenues is due for renewal and mgmt expects positive reversion with spot prices 9-35% above passing rents mgmt also guided that acquisitions in Singapore will be increasingly challenging and further growth opportunities may come in the form of Built-To-Suit (BTS) and development projects. Mgmt looking for growth opportunities in China’s Tier 1 cities (and cities such as Shenzhen and Guangzhou), as well as in Malaysia’s Iskandar (however, any acquisition will likely be in 2014). AREIT is currently trading at - 1.5x book value of $1.94/share as of end-March (vs. mean 1.35x) - 4.9% FY14e yield or 3.5ppts over the 10Y bond (vs. mean 4.5ppts) Broker recommendations- CS downgrades to UNDERPERFORM, TP of $2.48 DB downgrades to HOLD, TP of $2.76 Nomura maintains NEUTRAL, TP of $2.47 UOB Kay Hian maintains HOLD, TP of $2.86 CIMB maintains OUTPERFORM, TP of $3.05
... Married Deal: Vol: 100 Value: $254,000 ie $2.54 / share Prev Close: $2.54
Singapore Daily Singapore REITs: Rational Temperance NEUTRAL The stellar returns generated by S-REITs in 2005-2006 were buttressed by similarly outstanding DPU growth rates of 19-43% pa over 2005-2008 and strong growth in rents and capital values in 2005-2007 (in short, fundamentals-driven growth). However, the recent S-REITs 2012 rally was primarily fueled by QE-inflated asset values and ample liquidity, and not so much driven by underlying fundamentals such as strong DPU growth or rental upside, in our view. Unlike the “fundamentals-driven growth” experienced by S-REITs in 2005-2006, we expect the current “QE-inflated growth” to run out of steam once the “artificially compressed” interest rates in the US, and hence Singapore, start normalising sometime next year or early 2015. However, as markets are typically forward-looking, we expect S-REITs prices to rationalise probably in 2H13 or 2014. Reiterate NEUTRAL for overall S-REITs sector.
Look like this should let it pull back till 2.32 before showing interest for vesting.
Just personal view.
Short Ascendasreit.
http://sgxreports.blogspot.sg/2012/10/ascendas-reit_3487.html
Ascendasreit-
PP- 2.113
R1- 2.127
R2- 2.153
R3-2.193
S1- 2.087
S2- 2.073
S3-2.033
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