ASCENDAS Real Estate Investment Trust (A-Reit) said yesterday its second-quarter distributable income rose 15 per cent to $46.4 million, from $40.5 million a year earlier, as demand for the trust’s business space grew.
The better performance lifted A-Reit’s distribution per unit (DPU) to 3.51 cents, up 11 per cent from 3.16 cents paid for the previous corresponding period.
Net property income for Q2 ended Sept 30, 2007 increased 16 per cent to $60.1 million, from $51.9 million a year earlier.
A-Reit said its better performance was due to higher revenue resulting from higher occupancy and rents.
The occupancy rate for A-Reit’s portfolio reached 98.3 per cent in Q2. And rents at business and science parks and hi-tech industrial properties rose 32 per cent and 15 per cent respectively from Q1.
‘This can be attributed to the spillover effect from the tight CBD office market and our active asset management initiatives,’ said Tan Ser Ping, chief executive of the Reit’s manager.
For the half-year ended Sept 30, A-Reit’s distributable income rose 14 per cent to $91.1 million, while DPU rose 10 per cent to 6.88 cents.
Going forward, A-Reit said that with the economy strong, demand for business and industrial space, especially at business and science parks and hi-tech industrial properties, is likely to remain healthy.
The trust said: ‘A-Reit expects to be able to deliver a return for the second half of the current financial year that is in line with its performance in the first half of the financial year.’
A-Reit’s shares closed three cents lower at $2.39 yesterday. The stock price has fallen 10.5 per cent since the start of the year, compared with a 25.5 per cent climb in the Straits Times Index.
Source : Business Times - 20 Oct 2007
Monday, October 22, 2007
CMT is already one of Singapore’s biggest owners of malls with $5.8 billion worth under its belt
SINGAPORE’S biggest real estate investment trust, CapitaMall Trust (CMT), reported third-quarter group distributable income of $53.2 million, 17.2 per cent above the trust manager’s forecast and 29.1 per cent higher than in the year-ago period.
The shopping centre Reit yesterday also revealed plans to develop a low office tower with about 95,000 sq ft gross floor area (GFA) above the retail space at Tampines Mall. The time frame has yet to be finalised, but work could begin as early as sometime next year. CMT obtained outline planning advice from Urban Redevelopment Authority in July for a plot ratio increase for an office development and the trust has proceeded to apply for provisional permission to fully use the additional plot ratio increase from 3.5 to 4.2 for an office development.
For Funan DigitaLife Mall, CMT is currently exploring various options to unlock the value of this asset, after receiving provisional permission earlier this year, to build a nine-storey commercial block (predominantly offices) to maximise unutilised GFA of about 386,000 sq ft.
Asset enhancement works at Bugis Junction will see balconies being added on level 2 along Hylam and Malay streets, while opaque shopfronts on level 3 will be converted to glass parapets. Sembawang Shopping Centre’s redevelopment is on track for completion in Q4 2008.
CMT is already one of Singapore’s biggest owners of malls with $5.8 billion worth under its belt, but CapitaMall Trust Management Ltd’s CEO Pua Seck Guan says he is confident of growing this to $8 billion by 2010.
This will come from acquisition of malls from parent CapitaLand’s portfolio (such as Clarke Quay and a half-stake in Ion Orchard), as well as from other parties because of ‘CMT’s competitive cost of capital, superior skill set to extract value and established platform that allows us to optimise rentals,’ Mr Pua says.
Group gross revenue for the third quarter ended Sept 30, 2007, was $114.5 million, which was 20.7 per cent or $19.6 million higher than CMTML’s forecast based on an offer information statement dated August last year.
Roughly three quarters of this outperformance was due to consolidation of three malls owned by CapitaRetail Singapore Ltd from June 1 this year, while the rest was due to top-line revenue growth at the other malls in the CMT portfolio.
CMT’s Q3 group gross revenue was also 39.5 per cent higher than that in the year-ago period and the increase was due to a full quarter’s contribution from the trust’s 40-per-cent stake in Raffles City this round, compared with just a month’s contribution in Q3 2006; the consolidation of the three malls under CRS since June 1 this year; as well as revenue increase in other malls largely because of new and renewed leases at higher rates, plus the completion of asset enhancement at IMM Building late last year.
Group net property income for Q3 2007 was $76.8 million, 21.7 per cent higher than the forecast and 44.5 per cent above that in the same year-ago period.
CMT unitholders will receive a distribution per unit (DPU) of 3.40 cents for Q3, inclusive of a 0.09 cent capital distribution from the trust’s investment in CRCT. The 3.40-cent payout works out to 13.49 cents on an annualised basis, or a distribution yield of 3.69 per cent based on CMT’s closing price yesterday of $3.66.
Source : Business Times - 20 Oct 2007
The shopping centre Reit yesterday also revealed plans to develop a low office tower with about 95,000 sq ft gross floor area (GFA) above the retail space at Tampines Mall. The time frame has yet to be finalised, but work could begin as early as sometime next year. CMT obtained outline planning advice from Urban Redevelopment Authority in July for a plot ratio increase for an office development and the trust has proceeded to apply for provisional permission to fully use the additional plot ratio increase from 3.5 to 4.2 for an office development.
For Funan DigitaLife Mall, CMT is currently exploring various options to unlock the value of this asset, after receiving provisional permission earlier this year, to build a nine-storey commercial block (predominantly offices) to maximise unutilised GFA of about 386,000 sq ft.
Asset enhancement works at Bugis Junction will see balconies being added on level 2 along Hylam and Malay streets, while opaque shopfronts on level 3 will be converted to glass parapets. Sembawang Shopping Centre’s redevelopment is on track for completion in Q4 2008.
CMT is already one of Singapore’s biggest owners of malls with $5.8 billion worth under its belt, but CapitaMall Trust Management Ltd’s CEO Pua Seck Guan says he is confident of growing this to $8 billion by 2010.
This will come from acquisition of malls from parent CapitaLand’s portfolio (such as Clarke Quay and a half-stake in Ion Orchard), as well as from other parties because of ‘CMT’s competitive cost of capital, superior skill set to extract value and established platform that allows us to optimise rentals,’ Mr Pua says.
Group gross revenue for the third quarter ended Sept 30, 2007, was $114.5 million, which was 20.7 per cent or $19.6 million higher than CMTML’s forecast based on an offer information statement dated August last year.
Roughly three quarters of this outperformance was due to consolidation of three malls owned by CapitaRetail Singapore Ltd from June 1 this year, while the rest was due to top-line revenue growth at the other malls in the CMT portfolio.
CMT’s Q3 group gross revenue was also 39.5 per cent higher than that in the year-ago period and the increase was due to a full quarter’s contribution from the trust’s 40-per-cent stake in Raffles City this round, compared with just a month’s contribution in Q3 2006; the consolidation of the three malls under CRS since June 1 this year; as well as revenue increase in other malls largely because of new and renewed leases at higher rates, plus the completion of asset enhancement at IMM Building late last year.
Group net property income for Q3 2007 was $76.8 million, 21.7 per cent higher than the forecast and 44.5 per cent above that in the same year-ago period.
CMT unitholders will receive a distribution per unit (DPU) of 3.40 cents for Q3, inclusive of a 0.09 cent capital distribution from the trust’s investment in CRCT. The 3.40-cent payout works out to 13.49 cents on an annualised basis, or a distribution yield of 3.69 per cent based on CMT’s closing price yesterday of $3.66.
Source : Business Times - 20 Oct 2007
CapitaMall Trust (CMT), Singapore’s first and largest reit, said distributable income was $53.2 million in the third quarter ended Sept 30.
TWO large real estate investment trusts (Reits) yesterday reported higher quarterly distributable income amid a positive economic climate.
CapitaMall Trust (CMT), Singapore’s first and largest reit, said distributable income was $53.2 million in the third quarter ended Sept 30. This is 17.2 per cent higher than forecast and a 29 per cent rise from a year ago.
The retail Reit said the sum includes a capital distribution of $1.5 million from its 20 per cent investment in CapitaRetail China Trust.
Distribution per unit reached 3.4 cents in the third quarter. Net property income was $76.8 million, up 21.7 per cent from forecast.
Compared with the third quarter of last year, annualised distribution per unit rose 19.3 per cent to 13.49 cents.
CMT owns 13 retail malls here, including Plaza Singapura, Tampines Mall and Rivervale Mall.
Its rental renewal rates for the first three quarters of this year registered 12.1 per cent growth over preceding rates, and 5.5 per cent over projected rates.
Mr Pua Seck Guan, the chief executive of the trust’s manager, said assets had registered good organic growth and the Reit is also actively seeking yield-accretive acquisitions to grow its target local asset size to $8 billion by 2010.
CMT, which has assets worth about $5.8 billion, is enhancing several assets. At Tampines Mall, for instance, several new tenants, including skin and hair-care firm Kiehl’s, will set up shop by December.
CMT is also applying for permission to add about 95,000 sq ft of office space at the mall. This will entail a cost of $25.9 million.
Ascendas Real Estate Investment Trust (A-Reit) too delivered a favourable set of results, with distributable income for its second quarter that ended Sept 30 rising 15 per cent year on year to $46.4 million.
Distribution per unit was at 3.51 cents, up 11 per cent from a year ago.
The industrial Reit has benefited from increased demand, due to the take-up of space by tenants forced out of the tight office market.
Property occupancy reached a high of 98.3 per cent, up from 97.2 per cent three months ago.
Mr Tan Ser Ping, the chief executive of A-Reit’s manager, said net income rose 15.9 per cent to $118.2 million on the back of positive economic performance and increasing demand for quality business space.
A-Reit achieved a 32.3 per cent rise in rental rates for its business and science park space compared with the previous quarter, and a 15.5 per cent increase for high-tech industrial space.
A-Reit said it has secured over $270 million in new investments in development projects and acquisitions.
Source : Straits Times - 20 Oct 2007
CapitaMall Trust (CMT), Singapore’s first and largest reit, said distributable income was $53.2 million in the third quarter ended Sept 30. This is 17.2 per cent higher than forecast and a 29 per cent rise from a year ago.
The retail Reit said the sum includes a capital distribution of $1.5 million from its 20 per cent investment in CapitaRetail China Trust.
Distribution per unit reached 3.4 cents in the third quarter. Net property income was $76.8 million, up 21.7 per cent from forecast.
Compared with the third quarter of last year, annualised distribution per unit rose 19.3 per cent to 13.49 cents.
CMT owns 13 retail malls here, including Plaza Singapura, Tampines Mall and Rivervale Mall.
Its rental renewal rates for the first three quarters of this year registered 12.1 per cent growth over preceding rates, and 5.5 per cent over projected rates.
Mr Pua Seck Guan, the chief executive of the trust’s manager, said assets had registered good organic growth and the Reit is also actively seeking yield-accretive acquisitions to grow its target local asset size to $8 billion by 2010.
CMT, which has assets worth about $5.8 billion, is enhancing several assets. At Tampines Mall, for instance, several new tenants, including skin and hair-care firm Kiehl’s, will set up shop by December.
CMT is also applying for permission to add about 95,000 sq ft of office space at the mall. This will entail a cost of $25.9 million.
Ascendas Real Estate Investment Trust (A-Reit) too delivered a favourable set of results, with distributable income for its second quarter that ended Sept 30 rising 15 per cent year on year to $46.4 million.
Distribution per unit was at 3.51 cents, up 11 per cent from a year ago.
The industrial Reit has benefited from increased demand, due to the take-up of space by tenants forced out of the tight office market.
Property occupancy reached a high of 98.3 per cent, up from 97.2 per cent three months ago.
Mr Tan Ser Ping, the chief executive of A-Reit’s manager, said net income rose 15.9 per cent to $118.2 million on the back of positive economic performance and increasing demand for quality business space.
A-Reit achieved a 32.3 per cent rise in rental rates for its business and science park space compared with the previous quarter, and a 15.5 per cent increase for high-tech industrial space.
A-Reit said it has secured over $270 million in new investments in development projects and acquisitions.
Source : Straits Times - 20 Oct 2007
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