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Just a gentle reminder..last Friday closed 0.985ct, +0.01c. Vol: 1,554,000
| teeth53 | Posted: 24-Aug-2007 00:27 |
Has not taken notice, ahh..gone from $1.35 support, now traded & closed at 99.5ct, -0.005ct. |
will definitely go lower....
paying A1.175B for basslink cable costing A780m is too much, translating to ~A400m goodwill in future.
416.8m for intangibles assets under non current assets too high [50% total assets], total unitholder fund =409.98m if intangible can be recoverable when insolvent, potential to be = 0 for NTA [refer to pg3 balance sheet]
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_2913B042DBF73D424825733700401466/$file/Resultannouncement.pdf?openelement
Cityspring Infrastructure Management, a unit of Singapore's Temasek Holdings, plans to sell A$866 million (S$1.08 billion) of bonds to pay for its purchase of the Basslink power cable in Australia, Standard & Poor's said yesterday. The debt, to be issued by Premier Finance Trust Australia, is rated AAA, the top investment grade, by S&P. The deal includes A$486 million of eight-year bonds and A$380 million of securities linked to Australia's consumer price index, said Colin Atkin, a Melbourne-based credit analyst at S&P. 'The rating on the notes reflects the highly predictable revenues from the main business activity, low operating risks from the new modern asset, significant certainty over finance costs, and a supportive minority shareholder,' Mr Atkin said in the statement. Without the backing of Temasek, the debt would be rated BBB-, the lowest investment grade, reflecting 'the credit risk of the project', S&P said.
very interesting price, but seeing huge lots selling down made me gam chong.
on the queue now , 10 lots at 0.935
but i do agree that reits and trusts r good buys generally. hey, if nothing else, collect the quarterly distributions lah. beats saving with the banks anytime.
but i personally have reservations about cityspring because of the troubles back then (legal trouble? at least i'm sure there was something about the management fees). maybe u guys should look elsewhere at some better reits, like babcock & brown (around 90cts, renewable energy trust, 5ct payout right now), or ascendas reit (looks good for contra play, can have quite large fluctuations, but has good prospects).
hmm... let's see...
ascott reit: 1.59 - no change
ascendas reit: 2.39 - down 8 cts
k-reit: 2.47 - down 4 cts
mapletree: 1.17 - down 3 cts
oops, i must be looking at the minority of reits here.
Majority of the REITs and Trusts are moving up today.
Confident on REITs and Trusts is slowly coming back.
if you are a long term investor current pricing is a very good entry price. however for traders they are more concerned on the upside and how fast it can rise. if it rise too slow they prefer to take their monies elsewhere to earn faster quicker bucks. when more good news come in and volume start to rise, the traders will be back to join in the fun. traders work PURELY for monies. the fact this stock is supported by Temasek counts nothing. they only wanna know can make monies or not. the price can move fast enuff or not. these are criteria that affect traders. in this aspect investors are quite different from traders. stock market is a playground of traders and investors and that is what make the stock market tick every trading day isn't it? :)
Good Report from Goldman Sachs
REITS: Defensive with increasingly attractive valuations
We reiterate our positive view on Singapore REITs and recommend investors to buy We note that while REITs are positioned to be relatively defensive equities, the GS S-REIT Index has fallen by 11.8% since July, which is only slightly less than the decline in the Singapore property stock index of 15.3%. We have seen share prices of certain REITs and developers adversely impacted by similar magnitudes during the global credit crunch. With falling REIT prices, the trend of yield compression for REITs has reversed. We argue that REITs should not be sold down in the same manner as developer stocks given their lower risk profile. We saw REIT prices recently corrected even though our outlook on growth for REITs via positive rental reversions remains unchanged. Even assuming an extreme scenario, where the Singapore economy suffers a down turn (which we consider very unlikely), we note that: (1) REITs have secured leases, typically with 3 year tenures; (2) tenants tend to default on lease payments as a matter of last resort only; and (3) market rents are substantially higher than passing rents in segments like CBD office property. While we value REITs using DCF, as a cross check, we look at price to RNAV, which captures how much investors are paying for the underlying real estate assets. We note that office and retail REITs are trading at close to or at discounts to RNAV thereby reinforcing our positive take on these stocks. We see the current market providing a good entry point into REITs; yield spreads with the 10-yr bond have expanded to 200bp from 100bp in July, even though physical property market fundamentals remain sound (see Exhibit 3). We like REITs for their overlooked defensive characteristics and their leverage to the Singapore economic growth story.
What is the risk to the acquisition pipeline posed by credit market volatility?
While the organic growth driver for REITs continues to power ahead, we have near-term concerns on the acquisition growth driver. When we launched our REIT coverage in January, we forecasted for the 9 REITs we cover to make S$15bn worth of acquisitions within a 3-year time frame thereby boosting portfolio sizes by around 75%. Based on announced acquisitions, we note that YTD, our 9 REITs have made S$3.9bn worth of acquisitions, which is 27% of our 3-year acquisition target. Going forward, we continue to see Singapore REITs growing via acquisitions so as to stand out in an increasingly crowded REIT market. We note that amidst the global credit crunch, REITs may, in the near-to-medium term, find: (1) greater difficulty in accessing capital to finance transactions; and (2) higher costs of equity and debt. We estimate that compared to June, the borrowing costs for REITs would have gone up by around 50bp such that borrowing costs today from the domestic lenders may be closer to 4%. We explicitly factor in the near-term greater uncertainty of support and higher cost of funding from credit markets into lowering the contribution from the acquisition growth driver for our REITs. While we are confident in REITs growing to meet their acquisition targets over the next 2-3 years, we lower the amount of acquisition premium we use in setting the respective target prices for our 9 REITs due to greater uncertainty relating to execution on growth via acquisitions. The acquisition premium is an adjustment factor we use to reflect our confidence in the company making its targeted level of acquisitions at the estimated yield accretion. By paying out all or most of its distributable income, REITs need to tap capital markets to finance acquisitions. Current market volatility will impact the near-term ability of REITs to access capital market funding. Nonetheless, we see REITs as quality borrowers having the necessary debt capacity and expect that equity markets to be willing to fund good acquisitions.
in the prevailing choppy equity markets. We believe the market is under-appreciating the defensive qualities and overstating risks. REITs were sold down recently despite no change in the positive fundamentals for the Singapore property market or government risk free rates. In a flight to quality environment we like REITs for their: (i) low gearing, typically 40%; (ii) income payout, often of 100%; (iii) secured leases; and (iv) limited development risk. Given reduced risk tolerance, we favor those REITs: (a) with strong organic growth; and (b) trading near or below RNAV. While we see challenging conditions for REITs to access capital market funding for acquisitions, we believe the risk is overstated and we note that base case valuations are attractive.
Temasek Holdings, an Asia investment firm headquartered in Singapore, owns the entire issued share capital of the Trustee-Manager. Temasek fully supports CitySpring's aim to position itself as a leading player in a growing sector, by achieving significant growth through acquisitions.
As a wholly-owned indirect subsidiary of Temasek, the Trustee-Manager is able to draw on Temasek's international reach and business network in sourcing for acquisition opportunities.
Temasek has a dedicated internal team drawing on relevant infrastructure expertise to assist CitySpring in identifying acquisition opportunities. It intends to co-invest in infrastructure assets with CitySpring where Temasek deems it appropriate.
Temasek intends to enhance CitySpring's pipeline of
acquisition opportunities by acquiring infrastructure assets that may
be at an early stage where they have not yet generated regular and
predictable cash flows that would otherwise make them suitable
investments for CitySpring. Temasek may extend an opportunity to
CitySpring to acquire these assets when Temasek considers them more
mature and suitable for CitySpring's investment mandate, subject to
mutual agreement between Temasek and the Trustee-Manager, and approval
by CitySpring's Unitholders where required, and Temasek will abstain
from voting on the relevant transaction where required.
Infrastructure and utility stock are long term and stable plays. Not meant for trading
FA sound promising, no idea why it keep draining down.
Not vested.
I agreed with sohguanh.
I treat this as FD too.
If the price fall below IPO, I will put in more "principle".