REIT Oracle

CapitaLand China Trust Sells Beijing Mall for S$157.8 Million

CapitaLand China Trust is annoucing the sale of its entire stake into CapitaMall Shuangjing for RMB842.0 million (approximately S$157.8 million):

The Agreed Interest Price represents an exit yield of 2.8%. Targeted for completion in the first quarter of 2024, the divestment will crystallise higher cash value from the Property and enhance returns to Unitholders and is expected to generate net proceeds of approximately RMB690.7 million (approximately S$129.5 million).

Elite Commercial REIT Gearing Reaches 49.6% Following Drop in Portfolio Valuation

Elite Commercial REIT latest portfolio valuation saw a sharp drop in value and, as a result, an increase of its gearing level to 49.6%, close to the MAS limit of 50%:

In a business update on Tuesday (Dec 5), the Reit manager reported an adjusted net asset value (NAV) per unit of £0.43, representing a 15.7 per cent drop from £0.51 as at end-September.

With no near-term debt maturity until end-2024, the manager said the Reit remains compliant with all financial covenants under its debt facilities.

Manulife US REIT Announces Debt Restructuring and Recapitalization Plan

In order to reduce its excessive leverage, Manulife US REIT has announced its debt restructuring and recapitalization plan:

During a trading halt on Nov 29, the REIT’s managers announced a proposed recapitalisation plan in three parts. MUST will be seeking unitholders approval on three resolutions via an EGM to be held on Dec 14.

ARA US Hospitality Sells Hyatt Place Hotel at Pittsburgh Airport

ARA US Hospitality Trust is announcing the sale of Hyatt Place at Pittsburgh's Airport for US$7.7 million:

The Hotel is the smallest within our portfolio, accounting for 1.0% of total valuation as at 31 December 2022. In addition, with the impact of new supply growth, the market has been very slow to recover. In fact, market room demand was negative at a compounded annual growth rate of -7.3% from 2019 to 2022. The Hotel’s RevPAR Index (“RPI”) (competitive index) continues to struggle at 80% in 2023. As a result of the market conditions and continuing underperformance, the property value has declined 9.0% since 2019. Coupled with revenue underperformance, the Hotel is one of the bottom three performers, with a Gross Operating Profit margin of 21.6% in September 2023 trailing twelve months vs the Hyatt Portfolio average of 33.0%.

Furthermore, the Hotel is one of the older assets in our portfolio and will require sizable capital expenditure outlay relative to its value. Capital investment in this Hotel is considered dilutive to distributable income. By selling this asset, the Trust saves capital expenditure dollars that are better redeployed to higher performing assets in the portfolio

CapitaLand Ascott Trust Sells Two Australian Hotels

CapitaLand Ascott Trust is announcing the sale of two hotel properties in Sydney, Australia:

The properties – Courtyard by Marriott Sydney-North Ryde and Novotel Sydney Parramatta – are located outside Sydney’s city centre. They will be sold at 5 per cent above book value with an exit yield of 4.4 per cent on an expected net gain of A$14.2 million.

Parkway Life REIT Buys Two Japanese Nursing Homes

Parkway Life REIT is announcing the purchase of two nursing homes in Osaka, Japan, for ¥1,766 million:

Following the acquisition, PLife REIT’s leverage ratio will increase from 35.3% (as at June 30, 2023) to approximately 35.8%. This figure is within the regulatory gearing limit for Singapore REITs under the Code on Collective Investment Schemes.

CapitaLand Ascott Makes Big S$530 Million Acquisition

CapitaLand Ascott Trust is announcing the acquisition of 3 hospitality properties at a cost of S$530.8 million. Located in London, Dublin and Jakarka, the assets' purchase is expected to be yield accretive (distribution per share of +1.8% on a pro forma basis) and will require the approval of shareholders at an EGM held on October 24.

Financing is expected to be done using debt and equity previously raised this August.

Cromwell REIT Completes Italian Property Sale for 94 Million Euros

Cromwell European REIT is announcing the completion of the sale of Viale Europa 95 in Italy for 94 million Euros:

The Reit manager on Monday (Oct 9) estimated the sale consideration to represent a 13.1 per cent premium to Viale Europa’s 2017 purchase price of 83.1 million euros. The sale price stands at 28.2 per cent above the asset’s valuation of 73.3 million euros as at end-2022.

ESR-LOGOS REIT Sells Tuas Property

ESR-LOGOS REIT is announcing the sale of an industrial property in Tuas, Singapore:

ESR-Logos Real Estate Investment Trust’s (ESR-Logos Reit) trustee has agreed to sell the Reit’s general industrial building at 2 Tuas South Avenue 2 for S$53 million.

This represents a 35.2 per cent premium above the asset’s valuation of S$39.2 million based on an independent valuation conducted by CBRE as at Aug 31, 2023, said the Reit manager on Monday (Oct 2).

EC World Postpones Distribution Due to Rent Collection Difficulties

EC World REIT is deferring the payment of the distribution for the first half of 2023 due to "insufficient funds":

Without the payment of the outstanding rent receivables from its sponsor group, the REIT says it may also have insufficient funds to maintain its operations. In particular, it may not be able to pay its interest expenses when they are due going forward.