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Today is the last day cum dividends of 0.97cts to be given out on 26 Feb 10. Those who want the new year "Ang Pow" must hold your stock to after 5pm today.
Starhill Global REIT: BUY; S$0.545; Bloomberg Code: SGREIT SP
Earnings growth from David Jones
Price Target : S$ 0.66
by: Derek TAN +65 6398 7966
and LOCK Mun Yee +65 6398 7972
At a Glance
DPU of 0.97 Scts for 4Q09
Retail income to support weakening office revenue
Maintain Buy, TP $0.66
Comment on Results
DPU of 0.97 Scts. Gross revenues and net property income grew by1.5% and
3.2% to S$34.3m and S$26.8m respectively. Growth was largely contributed
from stronger retail revenues from its Singapore and China properties,
offset by weaker performance at its office space. Distributable income came
in at $19.1m, which is a 5.5% yoy increase, translating to a DPU of 0.97
Scts. The group also wrote their book up slightly by S$25m or 1.4% - NAV
per unit stands at S$0.82.
Retail portfolio to offset weakening office space. SGReit’s office
portfolio is expected to face downward pressure on rents from 2010 as
negative rental reversions starts to kick in. The group expects to renew a
total of total of 47.2% of its office NLA over 2010-11. Current rents are
ranging between $7-9psf/mth compared to the expiring levels of c$10psf. The
drag is likely to be offset by income from its retail portfolio and new
contributions from the David Jones property in Australia. Retail rents are
expected to be underpinned by the pick up in retail sales on the back of an
improving economy, anticipated increase in tourist arrivals and absence of
new supply (in view of the strong absorption of the new stock). Income from
the acquisition of the David Jones asset should be felt from 1Q10 with the
recent completion of transaction.
Recommendation
We maintain our Buy call with TP at $0.66. SGReit remains one of the major
beneficiaries of the improved tourism outlook with the upcoming opening of
the 2 IRs and is well-located malls in the heart of the Orchard Rd shopping
belt. The stock is offering FY10-11 DPU yield of 7.2-7.4% and 0.64x P/bk
NAV.
(Document link: Singapore Research)
Earnings growth from David Jones
Price Target : S$ 0.66
by: Derek TAN +65 6398 7966
and LOCK Mun Yee +65 6398 7972
At a Glance
DPU of 0.97 Scts for 4Q09
Retail income to support weakening office revenue
Maintain Buy, TP $0.66
Comment on Results
DPU of 0.97 Scts. Gross revenues and net property income grew by1.5% and
3.2% to S$34.3m and S$26.8m respectively. Growth was largely contributed
from stronger retail revenues from its Singapore and China properties,
offset by weaker performance at its office space. Distributable income came
in at $19.1m, which is a 5.5% yoy increase, translating to a DPU of 0.97
Scts. The group also wrote their book up slightly by S$25m or 1.4% - NAV
per unit stands at S$0.82.
Retail portfolio to offset weakening office space. SGReit’s office
portfolio is expected to face downward pressure on rents from 2010 as
negative rental reversions starts to kick in. The group expects to renew a
total of total of 47.2% of its office NLA over 2010-11. Current rents are
ranging between $7-9psf/mth compared to the expiring levels of c$10psf. The
drag is likely to be offset by income from its retail portfolio and new
contributions from the David Jones property in Australia. Retail rents are
expected to be underpinned by the pick up in retail sales on the back of an
improving economy, anticipated increase in tourist arrivals and absence of
new supply (in view of the strong absorption of the new stock). Income from
the acquisition of the David Jones asset should be felt from 1Q10 with the
recent completion of transaction.
Recommendation
We maintain our Buy call with TP at $0.66. SGReit remains one of the major
beneficiaries of the improved tourism outlook with the upcoming opening of
the 2 IRs and is well-located malls in the heart of the Orchard Rd shopping
belt. The stock is offering FY10-11 DPU yield of 7.2-7.4% and 0.64x P/bk
NAV.
(Document link: Singapore Research)
Oops! Too bullish about the est. DJ divs contribution liao. Actually, the late CEO had mentioned it before that its divs accretion is estimated at ~ 0.22cts per unit base on FY08 contribution.
Farmer ( Date: 28-Jan-2010 22:32) Posted:
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Indeed! Understand that it will be contributing at ~1cent pa. meaning 2010 total divs will hit ~5cts excluding the KL ppty's contributions once finalise.
This counter is undervalue indeed at current price.
tonylim2 ( Date: 28-Jan-2010 10:54) Posted:
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Its 4Q dividends of 0.97cts per unit share will be given out on 28 Feb directly into your bank account registered with CDP. Meaning, if you hold 10,000 shares beyond 1st Feb(last day cum div), you'll get $97.
fho1131 ( Date: 28-Jan-2010 11:03) Posted:
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Just announced
2009 Gross Revenue $134.6 mil, 6% increase.
2009 Distributed Income $18.8 mil, 7.2% increase.
Dividend Distributed Amount 0.97 Cents or $0.0097.
Fundamentally very good.
Close-On-Line just crosses SMA C(30).
Candlesticks shows bullishness.
Recent Market Correction has it driven to a very good price.
Technically also very good.
My personal view, Buy.
record date is 4feb. paying out on 26feb.
hi farmer; may i know it's giving out dividend when & how much ? thks.
DPU improved by 5.4% to 0.97 cts.
David Jones's rental will incrase DPU in next Q
Starhill Global REIT releasing full year ended 31
December 2009 financial statements on Thursday, 28 January 2010, before
market opens.
Its already expected to contribute to the latest DPU?
With the completion of acquisition of David Jones Building in Perth, Australia, looking forward at the 4Q09/FY results to be announced tomorrow before market reopen. Expect good sets of results and ~1ct divs and perhaps appointment of a new CEO. 
Tats what i tot but first reit is also trending up nicely to its nav.. Anyway agreed on the rapport with investment community. But sometimes, not entirely true. I rem brokerages were busy heaving underperform and hold/sell ratings on ascott back then when prices are around 40 to 50 cents, regardless of the results. I picked up quite an amount back then. :) Anyway when prices start to climb the analysts will be back. I believe the same goes for starhill
No, personally not heard off anything extra other than what's being reported on SGX,s Company Announcements.
Why it is trading vastly undervalue by >30%??? I believe mainly due to its oversea sponsor/property holding in its portfolio. Thus, this one will remain as "underdog" as compare to other Singaporean counters with local sponsors. Oh, the rapport with brokers also important to ensure constant stream of recommendations hence create market interest. I believe YTL is a better sponsor than Macq in this term.
Ultimately, the market will be the judge and this one will go up when others valuation are too high in the long run.
Thanks.
Have u guys heard of any non-reported news/rumors regarding starhill? Other than the usual concerns of lack of CEO, visibility of funding behind latest acquisitions, pricely acquisition, potential asset devaluation, etc. Just wondering why is it trading at 30% discount to its NAV whilst other S reits already trading close to or beyond their respective NAVs. I am comparing similar reits with no concerns of funding difficulties. (i am assuming starhill's refinancing capability is sound due to its parent's strength) Though there is bound not to be any direct apple to apple comparison its valuation seems to stick out like a sore thumb. Unless if u compare to AIMSreit, cambridge etc which to me doesnt look quite appropriate
Of course u can be even more conservative. Normally, Gearing = Debts/Assets. Base on last report, it's (625/2298)100 = 27.2%. After adjusted for the RI, its ~ 20.7%. There are always other hidden cost involve and its assets are always fluctuate in value thus, can't get the actual figure. To be conservative, just add another 10-20% see you can stomach such gearing for your investment and its future.
Yes I understand. But is this calculation correct? I used total liabilities instead of total debt to be more conservative. Is this acceptable?
I am assuming all else remains equal - Asset price, yield, etc.
Err,,,,, Normally after acquisitions, the gearing will increase due to new debt incur unless there's an significant increase in asset price after revaluation. However, yield should also improve due to more rental collected.
soyabean ( Date: 22-Jan-2010 10:46) Posted:
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sold off too... DJ dropping like a ton of brick
freeme ( Date: 22-Jan-2010 09:21) Posted:
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ask a newbie question here hor.
according to its last results, if I use 2298 mil (total assets), 733 mil (total liabilities), gearing = 31.9%
assuming all its existing cash is used (308mil - remaining from the rights issue) and the latest acquisitions to go through fully (571mil), would it become (733-308+571)/(2298-308+571) = 38.9%
is this calculation correct?