| Top 5 Yielder | Last | Yield | Disc. to NAV | Gearing |
|---|---|---|---|---|
| Sasseur Real Estate Investment Trust | 0.735 | 10.88% | 18.6% | 29.0% |
| Lippo Malls Indonesia Retail Trust | 0.197 | 10.41% | 31.3% | 34.6% |
| Soilbuild Business Space REIT | 0.605 | 8.73% | 4.0% | 39.1% |
| First REIT | 0.990 | 8.69% | 3.1% | 35.0% |
| Dasin Retail Trust | 0.860 | 8.41% | 38.1% | 32.3% |
| All Singapore REITsAll Malaysian REITs | ||||
It is reported that the developer LendLease group, listed in Australia, is eyeing the listing of a REIT in Singapore to offload some of its properties:
Citing people with knowledge of the transaction, the online article published today said the group is planning to raise up to US$500 million, or $675.3 million, from the listing.
The group itself, however, has yet to make any announcements on the ASX nor via its website as at the time of writing.
Lippo Malls (LMIRT) is planning to acquire a new property from its sponsor, the Lippo Mall Puri, for the sum of S$354.7 million (or 3.70 trillion Indonesian rupiah).
As at Dec 31, 2018, the mall has an occupancy rate of 89.6 per cent, with 324 tenants ranging from retail, dining, entertainment and leisure options. They include brands such as Cinema XXI, Matahari, Parkson and Time Zone, and over 100 renowned international brands such as adidas, Best Denki, H&M, Marks & Spencer, Uniqlo and Zara.
The large size of the purchase will make the assets size of the trust increase by 19%, which means a private or public right issue is likely during the 2019 year.
The difficulties met by water processing company Hyflux could impact ESR-REIT bottom line:
Hyflux is one of ESR-REIT’s top-10 tenants by rental income and income from the property accounted for 3.5% of rental income in December 2018.
Assuming a worst-case scenario wherein Hyflux is unable to fulfil its rental obligations, the REITs are unable to lease out space in the most recent financial year, and the full amount of the security deposit was drawn down for rental, ESR-REIT would suffer a 5.4% drop in annualised Q4 2018 distribution per unit.
Frasers Centrepoint Trust (FCT) will purchase a 17.1% stake in unlisted PGIM Real Estate Fund for S$342.5 millions:
FCT's manager said that the open-end fund is the largest non-listed retail mall fund in Singapore. It owns and manages six retail malls in Singapore - Tiong Bahru Plaza, White Sands, Liang Court, Hougang Mall, Century Square and Tampines 1 - and office property Central Plaza, as well as four retail malls in Malaysia.
Mapletree Industrial Trust is planning to issue 90.44 million new units to raise at least S$175 million
The new units will be placed to eligible institutional, accredited and other investors at an issue price of between S$1.935 and S$1.990 per new unit. The price range represents a discount of between 4.65 per cent and 1.94 per cent, respectively, to the volume-weighted average price of S$2.0293 per unit of all trades on Feb 11.
The trust mostly plans to use the fund to refinance the acquisition the property of 18 Tai Seng Street.
Bloomberg publishes an in-depth look into the shrinking number of companies listed on Singapore's stock market, SGX.
For the last five years, delistings have outnumbered listings in the market, which had 741 companies at the end of December last year, down from a peak of 782 in 2010. In 2018 the money raised from the 15 SGX initial public offerings, excluding depositary receipts, fell to just S$710.6 million, while 19 companies departed—a net outflow of S$19.2 billion in market value.
Ascott REIT is divesting from its Ascott Raffles Place property in Singapore's business district, for a sale price of S$353.3 million (64% above the valuation done on 31 December 2018). The art-deco tower, dating back to 1955, sits on a 999 year leasehold plot and generated about 3% of the trust gross profit.
Ascott REIT will use the proceeds to reduce debt and fund potential acquisitions and does not expect the transaction to have a material impact on its financial results.
The Business Times interviews Sabana REIT's manager's CEO
Phase one of that strategy was to ramp up the occupancy rate at the buildings in its portfolio from around 85 per cent to market rate of 88-89 per cent. Within the first month, he called a meeting with top-tier agents from different agencies like Knight Frank, CBRE, Savills and Colliers which are the prime movers of the real estate sectors.
Cromwell European REIT plans to buy from CDPG Luxembourg three logistics properties in France for 21.6 million euros. Located in Sully-sur-Loire (near Orléans), Parçay-Meslay (near Tours) and Villeneuve-lès-Béziers (near Béziers), the freehold assets have a Net Initial Yield of 8.5%. The transaction will be funded with equity and debt thanks a to a recent new share issue done by Cromwell REIT.
SPH REIT is planning to enter the Australian mall market by buying a 85% stake in an asset near Wollongong, at a price of A$175.1 million. The freehold property, Figtree Grove Shopping Centre, has a 21,984 m² gross lettable area and includes supermarkets and specialty stores.
The acquisition will be done through Figtree Holding Trust, a wholly owned subtrust of a joint venture held by SPH Reit and entities managed by the asset management division of financial services group Moelis Australia.