StarhillGbl Reit    Last:0.495    +0.01

Gaining strength

Managed to buy 60 lots at 0.605 minutes ago.

 

I guess it has got something to do with its fundamental(vastly undervalue) and improving office rental lah! Or could it be something else like M&A? Lets keep a watchful eyes....should break its 52weeks high by 4Q10 results. 

 

Strong buying today. Hit 0.63.

 

Creeping up solidly.

 

Starhill Global REIT: BUY; S$0.61; Bloomberg Code: SGREIT SP
Stable performer

Price Target : S$ 0.76 (Prev S$ 0.73)

by: Derek TAN CPA+65 6398 7966

At a Glance
• DPU of 1.0 Scts in line
• Recovering office occupancy at Wisma Atria positive sign
• BUY, TP revised to S$0.76 offers 31% total return

Comment on Results
DPU of 1.0 Scts in line. Starhill Global REIT (SGREIT) reported a strong
growth in topline and net property income to S$45.2m (+38.7% yoy, 22% qoq)
and S$35.8m (37% yoy, 24%qoq), boosted by an expanded portfolio - from
recently completed acquisitions: (i) David Jones in Australia and (ii) Lot
10 and Starhill Gallery in Malaysia. NPI was also slightly eroded from
higher A&P, leasing commissions expensed by SGREIT. Distributable income to
unitholders of S$19.4 (net of S$2.5m to CPU holders) translates to a DPU of
1.0 Scts.

Wisma Atria office occupancy levels rebounds - positive sign. While its
retail portfolio continue to remain stable, SGREIT’s office revenues
continue to remain weak at S$5.7m (-5%yoy, -4% qoq). However, we notice a
pick-up in occupancy levels to 85.7% as of Sept 2010 (vs 81.4% in 2Q10) at
Wisma Atria as positive sign and we understand that the manager is in
negotiations with a couple more prospective tenants to take up further
space, which should filter through to earnings in the coming quarter. The
expected
improved office leasing environment (projecting office occupancy to head up
to 95% in FY11) should somewhat offset the projected negative rental
renewals come 2011, mitigating downside earnings risk from its office
portfolio in the coming quarters.

Recommendation
Valuations attractive, BUY, TP S$0.76. Trading at 0.7x P/BV, and offering
forward FY11-12 yields of c7.3%, we see relative value in SGREIT compared
to other SREIT peers who trade at 1.05x P/BV, and offer a weighted average
yield of 6.0%. Our TP is raised to S$0.76 as we roll forward our valuation
to FY11.

 

To me, it doesn't matter since the outcome will be the same over the short term. But in the long run, it will dilute further the already big outstanding shares issued after the recent 1-1 RI. 

Lets hope for more dividends enhance M&A instead in the near future like Suntec just announce.

 

The DPU would be higher if the management fee is paid by issuing new units instead of cash, otherwise the DPU would be 0.01176 cents per unit.

Farmer      ( Date: 26-Oct-2010 18:44) Posted: Dividends for 3Q10 hit the top end of my est.....1ct and it will be payable on 29 Nov 10. Next Q results will be stronger? Lets see...hohoho!

 

Smaller REITs more attractive on price-to-book ratio: analysts

SINGAPORE : Singapore's real estate investment trusts (REITs) have risen more than 140 per cent since March 2009 and their value could go up by another 60 per cent, according to analysts.

REITs are currently offering juicy yields, which may start looking less attractive to investors when Singapore government bond yields start to climb higher.

Even then, analysts said there still are some standout performers among REITs that are offering value at current prices.

Singapore REITs are gearing up to acquire more properties.

Leverage ratios - which measure how indebted a REIT is in relation to its assets - have continued to fall this year.

Leverage is now at an average 28 per cent. This shows the REITs are well capitalised and in a better position to buy new properties with debt.

Loy Wee Khim, associate director, Corporate & Infrastructure Ratings, Standard & Poor's, said: "Most of the REITs are also thinking of where they are coming from - a low position because of the recapitalisation during the downturn.

"I think they are ready to acquire new assets to enhance their portfolio, so we find that most of them have the appetite to increase their gearing to below 40 per cent or 40 per cent level."

But OCBC Research said valuations of some REITs are now a tad too rich.

OCBC analysts said investors should shy away from the bigger REITs that are trading at premiums to their book value and focus on some of the smaller ones which are trading at a discount.

Meenal Kumar, an investment analyst at OCBC Investment Research, said: "From the perspective of long-term investors, we're actually calling to avoid the first tier large-cap REITs and instead, focus on what we call the forgotten, but still credible REITs.

"And by credible, I mean strong balance sheets, strong sponsors and of course importantly, high absolute yields. And also they should be trading at most, at parity to book value, but ideally at a discount to book value. And in terms of some of our top picks, we like Starhill Global REIT and Ascott Residence Trust."

Similarly, CIMB has recommended smaller REITs in the industrial space, such as Cache Logistics, as bigger players such as A-REIT are trading at a 30 per cent premium to book value.

 

Dividends for 3Q10 hit the top end of my est.....1ct and it will be payable on 29 Nov 10.

Next Q results will be stronger? Lets see...hohoho!

 

3Q result out tomorrow, let me make a guess on its div's distribution. Hmm... with the inclusion for its newly acquire KL ppty, it should come closer to ~1ct. 

 

Moody's withdraws Starhill Global REIT ratings

Moody's Investors Service has withdrawn its Baa2 Corporate Family Rating for Starhill Global REIT ("Starhill") and the (P)Baa3 senior unsecured rating for the MTN Programme issued under MMP MTN Pte and guaranteed by Starhill.

RATINGS RATIONALE


Moody's Investors Service has withdrawn the credit rating for its own business reasons. Please refer to Moody's Investors Service's Withdrawal Policy, which can be found on our website, www.moodys.com.

Moody's last rating action on Starhill was taken on 19th November 2009, when the ratings were affirmed following Starhill's proposed acquisition of three commercial properties in Australia and Malaysia for a total consideration of S$571 million.

Starhill Global REIT is a Singapore-based real estate investment trust investing primarily in real estate used for retail and office purposes, both in Singapore and overseas. Listed on the Singapore Stock Exchange in 2005, Starhill today owns 13 properties in Singapore, Malaysia, Australia, Japan and China, valued at about S$2.6 billion.

 

They just want to reduce coverages so as to cut costs.

Someone just snapped 2255 lots @0.595 at one go.

 

Moody's withdraws Starhill Global REIT ratings



Oct 13 (Reuters) - Starhill: Moody's Investors Service has withdrawn its Baa2 Corporate Family Rating for Starhill Global REIT ("Starhill") and the (P)Baa3 senior unsecured rating for the MTN Programme issued under MMP MTN Pte and guaranteed by Starhill.

 

Wonder what will be the effect of THIS on the counter.

Cheers.

 

It seems that 0.595 is the price to beat for now..... unless 3Q results surprise on the upside. Expect some good news this Q as Sg office rental is stablise and may move up. Lets kiv.

 

One million shares done at 0.59 at one go.

 

The retail sector in Kuala Lumpur's Klang Valley has improved since 2008, with a faster and positive leasing rate, according to a report released by CBRE.

The property consultancy firm said take up rates have improved significantly in the first half of this year than last year. Average occupancy was generally high, with several prime and non-prime retail malls in the Klang Valley area have an average occupancy rate of 92 percent at the end-Q2 compared to nearly 90 percent average occupancy rate in some malls in Kuala Lumpur.

Rental rates also rose in the second quarter, including some of the major malls like Pavilion, Suria KLCC, Mid Valley Megamall, AEON Bukit Tinggi, Gardens and Sunway Pyramid 2, and according to CBRE, overall rental rates may edge up further.

“There are reports that prime rents in Suria KLCC and Mid Valley have already risen by 10% to 30%,” it said.

“Suria KLCC prime rents have surpassed RM100 psf, and it will be interesting to see the change in the tenant mix as some under-performers exit this location.”

The market view report showed an increase in retailer demand in the second quarter; with many retailers have particular allocations for various new outlets this year.

However, the report also showed that 10 retail malls with more than three million sq ft of net lettable area are expected to be completed this year.

With this, CBRE believes that the retail market in the country is starting to divide into niches and submarkets, like the Petaling Jaya, Bangsar/Mont Kiara and Subang areas.

“The battles that will be fought in the future will be localised and the winners will be those with superior locations, tenant mixes and concepts,” said CBRE.

 

As observed, the other similar reits like Suntec, CMT... have move to higher level since but this one is still trading range bound way below its nav of ~81cts. It may be due to its overseas holding in its portfolio which seems as higher risk factor as compared to pure local play reits, but it could well be a blessing since the currency of Jp, Mal, Aust, except Cn have all strengthen recently.

Believe price should improve further with respect to increase/improve dividends yield from 3Q10 onwards.

 

Ask your remisier to do it for u.

maxliukt      ( Date: 03-Sep-2010 23:33) Posted: I received it as a cheque. how to have a direct payment to bank account???     thanks

 

I received it as a cheque. how to have a direct payment to bank account???

 

 

thanks

 

Normally i wait till the next morning to check my account, and the money is there and stated yesterday's date..

Maybe the money was banked in at around 11pm+

tonylim2      ( Date: 27-Aug-2010 19:27) Posted: Why dividend still not in my bank account by this hour ?