PETALING JAYA: Sunway Real Estate Investment Trust (Sunway REIT) has been awarded the National Annual Corporate Report Awards (NACRA) under the category of Excellence Awards for REITs and Closed-End Funds.
NACRA is a joint effort between Bursa Malaysia Bhd, Malaysian Institute of Accountants and The Malaysian Institute of Certified Public Accountants.
The objective of the award is to promote greater and more effective communication by organisations through the publication of timely, informative, factual, reader-friendly annual reports and promote higher standards of corporate governance.
Sunway REIT Management Sdn Bhd is the manager of Sunway REIT.
Sunway REIT Management chief executive officer Datuk Jeffrey Ng said: “It is Sunway REIT’s management culture to practice high level of transparency reporting and strong corporate governance in communication with stakeholders.
“We recognise that annual report is a powerful platform of communication with stakeholders.
“In view of that, we have made deliberate endeavour to embed strong corporate governance practices and quality disclosure in the annual report for the best interest of all stakeholders.”
By The Star
Showing posts with label REIT / Property Investment. Show all posts
Showing posts with label REIT / Property Investment. Show all posts
Friday, November 23, 2012
Tuesday, November 6, 2012
AmFIRST REIT net income grows to RM21.9m
KUALA LUMPUR: AmFIRST Real Estate Investment Trust (AmFIRST REIT) achieved a net income of RM21.9 million for the first half year ended Sept 30, 2012, compared to RM18.9 million in the preceding year.
Gross revenue rose to RM53.4 million from RM 46.2 million, whilst net property income grew from RM31.3 million to RM 35.8 million, as compared to the previous corresponding period.
Am ARA REIT Managers Sdn Bhd(Am ARA) is the manager of AmFIRST REIT.
In a statement today, Am ARA’s Chief Executive Officer Lim Yoon Peng said: "The improved results are attributed to the additional contribution from the newly acquired Prima 9 and Prima 10 properties completed on Nov 30 last year, plus improved occupancies across the investment portfolio."
He said for the six-month period ended Sept 30, 2012, the trust would distribute approximately 100 per cent of its realised earnings of RM 21.7 million.
This is equivalent to an income distribution of 3.16 sen per unit based on the enlarged unit holdings of 686.4 million units in circulation.
This rights issue exercise has brought gearing down to 28.7 per cent and the net asset value per unit has been adjusted to RM1.20, he added.
Am ARA said on Nov 1, the trust announced the completion of the acquisition of Kompleks Tun Sri Lanang which would contribute an additional income of approximately 0.13 sen per unit for the next five months, till the financial year ending March 31, 2013.
By Bernama
Gross revenue rose to RM53.4 million from RM 46.2 million, whilst net property income grew from RM31.3 million to RM 35.8 million, as compared to the previous corresponding period.
Am ARA REIT Managers Sdn Bhd(Am ARA) is the manager of AmFIRST REIT.
In a statement today, Am ARA’s Chief Executive Officer Lim Yoon Peng said: "The improved results are attributed to the additional contribution from the newly acquired Prima 9 and Prima 10 properties completed on Nov 30 last year, plus improved occupancies across the investment portfolio."
He said for the six-month period ended Sept 30, 2012, the trust would distribute approximately 100 per cent of its realised earnings of RM 21.7 million.
This is equivalent to an income distribution of 3.16 sen per unit based on the enlarged unit holdings of 686.4 million units in circulation.
This rights issue exercise has brought gearing down to 28.7 per cent and the net asset value per unit has been adjusted to RM1.20, he added.
Am ARA said on Nov 1, the trust announced the completion of the acquisition of Kompleks Tun Sri Lanang which would contribute an additional income of approximately 0.13 sen per unit for the next five months, till the financial year ending March 31, 2013.
By Bernama
Monday, November 5, 2012
Pavillion REIT posts RM48.73m pre-tax profit
KUALA LUMPUR: Pavillion Real Estate Investment Trust has recorded a pre-tax profit of RM48.738 million for the third quarter financial period ended Sept 30, 2012.
Revenue for the period was RM86.509 million, the company said in a filing to Bursa Malaysia today.
It said an asset enhancement initiative announced in January last year has been completed with most tenants commencing trade from end of the quarter under review.
This is expected to bring higher rental income for the next quarter, it said.
By Bernama
Revenue for the period was RM86.509 million, the company said in a filing to Bursa Malaysia today.
It said an asset enhancement initiative announced in January last year has been completed with most tenants commencing trade from end of the quarter under review.
This is expected to bring higher rental income for the next quarter, it said.
By Bernama
Friday, October 26, 2012
Interesting times ahead for Malaysia's REITs industry
SINGAPORE: There are interesting times ahead for Malaysian Real Estate Investment Trusts (M-REITs) which is also set to attract new players to the market.
Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng said with the success of the listing of M-REITs and the performance track record (total return), the industry will continue to attract new players to it.
“We wish to see the entry of REIT players that are backed by size, good quality assets and reputable promoters to grow M-REITs to the top three REITs market in the region. “Currently, the top three REITs markets in terms of market capitalisation in Asia are Japan, Singapore and Hong Kong,” he told Bernama.
When asked how he rated the local industry at present and challenges faced by players like Sunway REIT, Ng pointed out that the M-REIT industry is currently in the growth phase.
“It continues to attract the entry of not only new but large and quality REIT players as evident from the listing of Pavilion REIT and IGB REIT from the end of last year to date. The market capitalisation of M-REIT stood at RM19.3bil as at Sept 30.
“This however, is relatively small, in comparison to the Singapore REIT market,” he said. Ng noted that there were many property companies planning for REITs and this augurs well for the M-REIT industry in the future.
“One key challenge is competition. We believe that competition is inevitable and the best approach in managing this is through clearly defined growth strategies with good execution.
“We will continue to implement our growth strategies in order to maintain market dominance in M-REITs. Certain sub-sectors of the property market are heading towards more intense competition and over time, it is a survival of the fittest,” he said.
As more REITs enter the market, Ng said acquiring new assets with earnings accretive will naturally become more difficult by virtue of the compressed yields.
Touching on existing policies, he said the Securities Commission, Bursa Malaysia and the Ministry of Finance have been extremely supportive of the development and growth of M-REITs industry.
“The prevailing regulations are accommodative for expansion of the M-REITs industry. For instance, the permitted gearing limit for M-REITs is up to a maximum level of 50%.
“In our opinion, the permissible gearing limit is supportive of growth compared to a country like Sinagpore, where the gearing limit is set at 30% (without rating from credit rating agencies).
“The authorities may consider adopting Singapore's policy in allowing gearing levels to reach a maximum of 60% backed by rating from credit rating agencies,” Ng said. - Bernama
“For larger REITs, the additional 10% gearing limit is meaningful for acquisitions,” he added.
By Bernama
Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffrey Ng said with the success of the listing of M-REITs and the performance track record (total return), the industry will continue to attract new players to it.
“We wish to see the entry of REIT players that are backed by size, good quality assets and reputable promoters to grow M-REITs to the top three REITs market in the region. “Currently, the top three REITs markets in terms of market capitalisation in Asia are Japan, Singapore and Hong Kong,” he told Bernama.
When asked how he rated the local industry at present and challenges faced by players like Sunway REIT, Ng pointed out that the M-REIT industry is currently in the growth phase.
“It continues to attract the entry of not only new but large and quality REIT players as evident from the listing of Pavilion REIT and IGB REIT from the end of last year to date. The market capitalisation of M-REIT stood at RM19.3bil as at Sept 30.
“This however, is relatively small, in comparison to the Singapore REIT market,” he said. Ng noted that there were many property companies planning for REITs and this augurs well for the M-REIT industry in the future.
“One key challenge is competition. We believe that competition is inevitable and the best approach in managing this is through clearly defined growth strategies with good execution.
“We will continue to implement our growth strategies in order to maintain market dominance in M-REITs. Certain sub-sectors of the property market are heading towards more intense competition and over time, it is a survival of the fittest,” he said.
As more REITs enter the market, Ng said acquiring new assets with earnings accretive will naturally become more difficult by virtue of the compressed yields.
Touching on existing policies, he said the Securities Commission, Bursa Malaysia and the Ministry of Finance have been extremely supportive of the development and growth of M-REITs industry.
“The prevailing regulations are accommodative for expansion of the M-REITs industry. For instance, the permitted gearing limit for M-REITs is up to a maximum level of 50%.
“In our opinion, the permissible gearing limit is supportive of growth compared to a country like Sinagpore, where the gearing limit is set at 30% (without rating from credit rating agencies).
“The authorities may consider adopting Singapore's policy in allowing gearing levels to reach a maximum of 60% backed by rating from credit rating agencies,” Ng said. - Bernama
“For larger REITs, the additional 10% gearing limit is meaningful for acquisitions,” he added.
By Bernama
Wednesday, October 3, 2012
Naim targets RM3bil REIT with ‘mini KLCC’ project
KUALA LUMPUR: Naim Holdings Bhd is the latest property group to express ambitions of having its own real estate investment trust (REIT), with a target size of RM3bil. The plans, though, are in early stages, but will include new developments such as its “mini KLCC” project, which has yet to be named, at the old Bintulu Airport, that carries a gross development value (GDV) of some RM2bil.
This puts the Sarawak-based Naim Holdings, which also has a significant construction arm, in the same category of companies such as TA Global Bhd and KLCC Property Holdings Bhd, which have in recent times expressed interest in forming their own REITs.
Both property and construction arms contribute equally to the company's revenue.
Speaking to reporters at a luncheon yesterday, senior director for corporate services Ricky Kho said the company planned to launch the REIT in six to nine years, when its property assets had reached a “sufficient size.”
It was the company's long-term plan to generate recurring income and gain in property value, He said, adding that the REIT would allow the company to manage the tenant mix of its commercial property units to “maintain the dynamic and vibrancy of the entire development.”
If all goes as planned, Naim Holdings' REIT will be the first Sarawakian REIT.
The properties that will be injected into the proposed REIT include Naim Holdings' completed two-storey Miri Permy Mall. The remaining REIT properties that have yet to be completed are the development of the old Bintulu Airport, a mixed-development in Batu Lintang in Kuching, Pantain Piasau Residences and Piasau Camp in Miri.
Permy Mall's occupancy rate is 94%, and it is expected to generate rental income of RM8mil per annum. “It is already giving us a return of 12% on rental income,” Kho said.
The total development cost, including land and building for the Permy Mall, stands at RM52mil. As at Dec 31, 2011, the estimated fair value for the building and land was RM85mil and RM3.6mil respectively.
Naim Holdings aims to develop a “mini KLCC” at the old Bintulu Airport situated in the New Bintulu City Centre, with a GDV of RM2bil.
“We are going to have a shopping complex, condominiums, SOHO (small office home office) units and hotels,” Kho said.
The whole project will take about 10 to 15 years to be fully complete. The company will launch the shopping complex worth about RM400mil early next year.
Naim Holdings will be developing a 34-acre site in Batu Lintang, Kuching, for a mixed development with a GDV of RM1.8bil spread over 20 years. The company will build the residential segment by the end of next year.
The company has a landbank of about 2,620 acres with an estimated GDV of RM9.5bil. Kho mentioned that the company was still looking to increase its landbank in the Samaluju area in Bintulu.
The Sawarak-based company has about RM1.3bil in its construction orderbook, which is mainly for infrastructural work in the Sawarak Corridor of Renewable Energy (Score).
Score is one of the five regional development corridors initiated by the Federal and Sarawak state government to develop and transform Sarawak into a developed state by 2030.
The corridor will encourage investments in power generation via energy resources like hydro-power, coal and natural gas, which have been found in Sarawak's central region.
The company was recently awarded a RM208.2mil contract via its wholly-owned subsidiary, Naim Engineering Sdn Bhd, for one of the work packages under the Klang Valley Mass Rapid Transit project in Kuala Lumpur.
By The Star
This puts the Sarawak-based Naim Holdings, which also has a significant construction arm, in the same category of companies such as TA Global Bhd and KLCC Property Holdings Bhd, which have in recent times expressed interest in forming their own REITs.
Both property and construction arms contribute equally to the company's revenue.
Speaking to reporters at a luncheon yesterday, senior director for corporate services Ricky Kho said the company planned to launch the REIT in six to nine years, when its property assets had reached a “sufficient size.”
It was the company's long-term plan to generate recurring income and gain in property value, He said, adding that the REIT would allow the company to manage the tenant mix of its commercial property units to “maintain the dynamic and vibrancy of the entire development.”
If all goes as planned, Naim Holdings' REIT will be the first Sarawakian REIT.
The properties that will be injected into the proposed REIT include Naim Holdings' completed two-storey Miri Permy Mall. The remaining REIT properties that have yet to be completed are the development of the old Bintulu Airport, a mixed-development in Batu Lintang in Kuching, Pantain Piasau Residences and Piasau Camp in Miri.
Permy Mall's occupancy rate is 94%, and it is expected to generate rental income of RM8mil per annum. “It is already giving us a return of 12% on rental income,” Kho said.
The total development cost, including land and building for the Permy Mall, stands at RM52mil. As at Dec 31, 2011, the estimated fair value for the building and land was RM85mil and RM3.6mil respectively.
Naim Holdings aims to develop a “mini KLCC” at the old Bintulu Airport situated in the New Bintulu City Centre, with a GDV of RM2bil.
“We are going to have a shopping complex, condominiums, SOHO (small office home office) units and hotels,” Kho said.
The whole project will take about 10 to 15 years to be fully complete. The company will launch the shopping complex worth about RM400mil early next year.
Naim Holdings will be developing a 34-acre site in Batu Lintang, Kuching, for a mixed development with a GDV of RM1.8bil spread over 20 years. The company will build the residential segment by the end of next year.
The company has a landbank of about 2,620 acres with an estimated GDV of RM9.5bil. Kho mentioned that the company was still looking to increase its landbank in the Samaluju area in Bintulu.
The Sawarak-based company has about RM1.3bil in its construction orderbook, which is mainly for infrastructural work in the Sawarak Corridor of Renewable Energy (Score).
Score is one of the five regional development corridors initiated by the Federal and Sarawak state government to develop and transform Sarawak into a developed state by 2030.
The corridor will encourage investments in power generation via energy resources like hydro-power, coal and natural gas, which have been found in Sarawak's central region.
The company was recently awarded a RM208.2mil contract via its wholly-owned subsidiary, Naim Engineering Sdn Bhd, for one of the work packages under the Klang Valley Mass Rapid Transit project in Kuala Lumpur.
By The Star
Naim Holdings to venture into REIT
KUALA LUMPUR: Sarawak-based Naim Holdings Bhd aims to move into real estate investment trust (REIT) business with properties en route for launching this year of gross development value of up to RM400 million.
Its corporate services senior director, Ricky Kho Teck Hock, said over the next six to nine years, the group aimed to launch properties of over RM3 billion in value.
He said the REIT business would generate recurring income and gain in property value.
"We have been focusing on our business in Sarawak all this while. Now we are looking to expand to Peninsular Malaysia.
"The company is searching for the right properties to acquire in the Klang Valley, Penang and Pahang," he said after delivering a luncheon talk entitled "Opportunities in Sarawak Corridor of Renewable Energy (SCORE)" here yesterday.
Kho said the group has about RM1.3 billion worth of construction tenders in hand and was also bidding for over RM2 billion worth of tenders within the SCORE area.
He said the group planned to launch the first phase of its New Bintulu City Centre and the Pantai Piasau residences in Miri next year. "The overall GDV of the 17ha New Bintulu City Centre is RM2.3 billion and the 14.97ha Pantai Piasau residences is worth RM251 million," he said.
By Bernama
Its corporate services senior director, Ricky Kho Teck Hock, said over the next six to nine years, the group aimed to launch properties of over RM3 billion in value.
He said the REIT business would generate recurring income and gain in property value.
"We have been focusing on our business in Sarawak all this while. Now we are looking to expand to Peninsular Malaysia.
"The company is searching for the right properties to acquire in the Klang Valley, Penang and Pahang," he said after delivering a luncheon talk entitled "Opportunities in Sarawak Corridor of Renewable Energy (SCORE)" here yesterday.
Kho said the group has about RM1.3 billion worth of construction tenders in hand and was also bidding for over RM2 billion worth of tenders within the SCORE area.
He said the group planned to launch the first phase of its New Bintulu City Centre and the Pantai Piasau residences in Miri next year. "The overall GDV of the 17ha New Bintulu City Centre is RM2.3 billion and the 14.97ha Pantai Piasau residences is worth RM251 million," he said.
By Bernama
Tuesday, October 2, 2012
Naim Holdings plans REIT, value RM3bil
KUALA LUMPUR: Naim Holdings Bhd plans to launch a real estate investment trust (REIT) with a property value of about RM3bil.
The REIT would be launched within six to nine years when the property assets have reached "sufficient size", said its senior director for corporate services Ricky Kho.
He said on Tuesday it was the Sarawak-based Naim Holdings' long-term plan to generate recurring income and gain in property value.
For the REIT, the completed project is the two-storey Miri Permy Mall. Its occupancy rate is 94% and it is expected to generate rental income of RM8mil per annum.
The estimated fair value for the building and land is RM85.0mil and RM3.6mil respectively as at Dec 31, 2011.
The total development cost including land and building for the Permy Mall is RM52mil (land cost of RM3mil and building cost of RM49mil) with gross floor area of 275,000 sq ft and lettable floor area of 153,000 sq ft.)
Kho said the other properties under the proposed REIT would include mixed development projects which would be launched during the six to nine years.
By The Star
The REIT would be launched within six to nine years when the property assets have reached "sufficient size", said its senior director for corporate services Ricky Kho.
He said on Tuesday it was the Sarawak-based Naim Holdings' long-term plan to generate recurring income and gain in property value.
For the REIT, the completed project is the two-storey Miri Permy Mall. Its occupancy rate is 94% and it is expected to generate rental income of RM8mil per annum.
The estimated fair value for the building and land is RM85.0mil and RM3.6mil respectively as at Dec 31, 2011.
The total development cost including land and building for the Permy Mall is RM52mil (land cost of RM3mil and building cost of RM49mil) with gross floor area of 275,000 sq ft and lettable floor area of 153,000 sq ft.)
Kho said the other properties under the proposed REIT would include mixed development projects which would be launched during the six to nine years.
By The Star
Saturday, September 22, 2012
Southkey Megamall maybe injected into IGB REIT
The upcoming Southkey Megamall in Johor Baru is expected to be injected into newly public-listed IGB Real Estate Investment Trust (IGB REIT).
The Mid Valley City-type mixed development is a joint venture between IGB REIT's sponsor, IGB Corporation Bhd and Selia Pantai Sdn Bhd. The project is expected to be completed in the next five years with a tentative gross development value of between RM6 billion and RM8 billion.
"IGB Corp has yet to receive approvals from the local authorities in Johor, but they have been very supportive of the project. If everything goes as planned, work on the new mall should start in the first half of next year," said IGB REIT chief executive Antony P. Barragry after its listing ceremony yesterday.
Barragry said after the Southkey Megamall is completed, IGB Corp will operate the business for some time before putting it into the REIT.
"The project will be greater than Mid Valley City as the potential brought through the rapid development of Iskandar Malaysia is enormous," he said.
IGB REIT made its debut on the Main Market of Bursa Malaysia yesterday with some 1.92 million shares traded at an opening price of RM1.37, a premium of 12 sen over its offer price of RM1.25.
Its share price closed at RM1.39 yesterday, up 11.2 per cent with 2,361,610 shares transacted
IGB REIT raised about RM780 million, making it the country's fourth-largest flotation this year, behind palm oil firm Felda Global Ventures Holdings in June, IHH Healthcare in July, and pay-TV company Astro Malaysia Holdings which is due to list in October.
Barragry said the listing of IGB REIT will provide investors exposure to a highly attractive initial portfolio, comprising two connected super-regional malls, Mid Valley and the Gardens Mall.
"We are committed to enhancing unitholders' return and value through the organic growth of our existing portfolio as well as potential acquisition of additional suitable retail properties," he said.
By Business Times
The Mid Valley City-type mixed development is a joint venture between IGB REIT's sponsor, IGB Corporation Bhd and Selia Pantai Sdn Bhd. The project is expected to be completed in the next five years with a tentative gross development value of between RM6 billion and RM8 billion.
"IGB Corp has yet to receive approvals from the local authorities in Johor, but they have been very supportive of the project. If everything goes as planned, work on the new mall should start in the first half of next year," said IGB REIT chief executive Antony P. Barragry after its listing ceremony yesterday.
Barragry said after the Southkey Megamall is completed, IGB Corp will operate the business for some time before putting it into the REIT.
IGB REIT made its debut on the Main Market of Bursa Malaysia yesterday with some 1.92 million shares traded at an opening price of RM1.37, a premium of 12 sen over its offer price of RM1.25.
Its share price closed at RM1.39 yesterday, up 11.2 per cent with 2,361,610 shares transacted
IGB REIT raised about RM780 million, making it the country's fourth-largest flotation this year, behind palm oil firm Felda Global Ventures Holdings in June, IHH Healthcare in July, and pay-TV company Astro Malaysia Holdings which is due to list in October.
Barragry said the listing of IGB REIT will provide investors exposure to a highly attractive initial portfolio, comprising two connected super-regional malls, Mid Valley and the Gardens Mall.
"We are committed to enhancing unitholders' return and value through the organic growth of our existing portfolio as well as potential acquisition of additional suitable retail properties," he said.
By Business Times
IGB REIT expects to have Southkey mall by 2015
KUALA LUMPUR: IGB Real Estate Investment Trust (REIT) expects the upcoming Southkey Megamall project that is being developed by IGB Corp in Johor Baru to be injected into its portfolio by as early as 2015.
IGB REIT Management Sdn Bhd chief executive officer Antony Barragry said the inclusion of the property would hinge on how quickly IGB Corp could develop the mall.
“We are still waiting for the approval from the state authority before building can commence.
“Realistically, we're looking at late 2015,” he said at a press conference after IGB REIT's listing on the Main Market of Bursa Malaysia yesterday.
IGB REIT opened at RM1.37, which was 12 sen above its offer price of RM1.25. It closed at RM1.39, with 236.16 million shares traded hands. It was also the most actively traded stock on Friday.
IGB REIT Management is the manager of IGB REIT, which is a unit of property firm IGB Corp. IGB REIT owns two shopping malls in Kuala Lumpur, namely the Mid Valley Megamall and the Gardens Mall.
Both properties have over 2.5 million sq feet of net lettable area with over 650 tenants and almost fully occupied.
The proposed Mid Valley City-type Southkey Megamall project is a joint venture between IGB Corp Bhd and Selia Pantai Sdn Bhd and has a tentative gross development value of RM6bil.
Barragry said he was optimistic about the development prospects of Johor.
“With a lot of development in Iskandar (Malaysia) we see good opportunities in Johor.”
Meanwhile, when asked to comment about a recent report that IGB REIT was looking for inorganic expansion opportunities such as acquisitions in the United States or Europe, IGB REIT Management chief financial officer Chai Lai Sim said the decision to expand overseas was up to IGB Corp.
“For opportunities overseas, it is up to IGB Corp to look for properties to acquire, while we (IGB REIT) look for opportunities locally.”
She also noted that IGB REIT had a gearing ration of 25.8%, which was in line with the industry average.
On IGB REIT's local expansion strategy, Barragry said: “We keep our eyes open and the (Malaysian) market is quite lively.
“The way forward is to keep looking for opportunities. If the right one comes, we'll be interested in pursuing it.”
By The Star
IGB REIT Management Sdn Bhd chief executive officer Antony Barragry said the inclusion of the property would hinge on how quickly IGB Corp could develop the mall.
“We are still waiting for the approval from the state authority before building can commence.
“Realistically, we're looking at late 2015,” he said at a press conference after IGB REIT's listing on the Main Market of Bursa Malaysia yesterday.
IGB REIT opened at RM1.37, which was 12 sen above its offer price of RM1.25. It closed at RM1.39, with 236.16 million shares traded hands. It was also the most actively traded stock on Friday.
IGB REIT Management is the manager of IGB REIT, which is a unit of property firm IGB Corp. IGB REIT owns two shopping malls in Kuala Lumpur, namely the Mid Valley Megamall and the Gardens Mall.
Both properties have over 2.5 million sq feet of net lettable area with over 650 tenants and almost fully occupied.
The proposed Mid Valley City-type Southkey Megamall project is a joint venture between IGB Corp Bhd and Selia Pantai Sdn Bhd and has a tentative gross development value of RM6bil.
Barragry said he was optimistic about the development prospects of Johor.
“With a lot of development in Iskandar (Malaysia) we see good opportunities in Johor.”
Meanwhile, when asked to comment about a recent report that IGB REIT was looking for inorganic expansion opportunities such as acquisitions in the United States or Europe, IGB REIT Management chief financial officer Chai Lai Sim said the decision to expand overseas was up to IGB Corp.
“For opportunities overseas, it is up to IGB Corp to look for properties to acquire, while we (IGB REIT) look for opportunities locally.”
She also noted that IGB REIT had a gearing ration of 25.8%, which was in line with the industry average.
On IGB REIT's local expansion strategy, Barragry said: “We keep our eyes open and the (Malaysian) market is quite lively.
“The way forward is to keep looking for opportunities. If the right one comes, we'll be interested in pursuing it.”
By The Star
Friday, September 21, 2012
RHB Research: IGB REIT fair value RM1.43
KUALA LUMPUR: RHB Research Institute has initiated coverage on IGB REIT, which will be listed on Friday, with an Outperform call and a DDM-based fair value of RM1.43, based on a cost of equity assumption of 7%. The offer price is RM1.25.
It said IGB REIT, with its two assets Mid Valley Megamall (worth RM3.44bn) and The Gardens Mall (RM1.16bn) will be the largest pure retail REIT thus far, ahead of Pavilion REIT and Sunway REIT. “We believe that The Gardens Mall (TGM) will be the REIT's future growth driver. TGM currently contributes about 30% to IGB REIT's topline. TGM is a high-end mall and in the early stages of its rental cycle as compared to the more matured Mid Valley Megamall (MVM),” it said. RHB Research said other factors that could potentially drive IGB REIT's growth going forward include: 1) Strength of the management team; 2) Proactive asset enhancement initiatives; 3) Potential development of the surrounding areas; and 4) Resilient consumer spending. “We forecast an EPU growth of about 6%-7% per annum for IGB REIT, on the back of our rental growth assumption of 5%-6% per annum for MVM and 7%-9% per annum for TGM,” it said.
By The Star
It said IGB REIT, with its two assets Mid Valley Megamall (worth RM3.44bn) and The Gardens Mall (RM1.16bn) will be the largest pure retail REIT thus far, ahead of Pavilion REIT and Sunway REIT. “We believe that The Gardens Mall (TGM) will be the REIT's future growth driver. TGM currently contributes about 30% to IGB REIT's topline. TGM is a high-end mall and in the early stages of its rental cycle as compared to the more matured Mid Valley Megamall (MVM),” it said. RHB Research said other factors that could potentially drive IGB REIT's growth going forward include: 1) Strength of the management team; 2) Proactive asset enhancement initiatives; 3) Potential development of the surrounding areas; and 4) Resilient consumer spending. “We forecast an EPU growth of about 6%-7% per annum for IGB REIT, on the back of our rental growth assumption of 5%-6% per annum for MVM and 7%-9% per annum for TGM,” it said.
By The Star
Monday, September 17, 2012
Nusa Gapurna mulls REIT
POTENTIALLY WORTH RM2.5b: Assets include six high-rise buildings being planned at PJ Sentral Garden City
NUSA Gapurna Sdn Bhd, a low-key developer, is mul-ling grouping its assets to form a commercial real estate investment trust (REIT) by 2015, which could potentially be worth more than RM2.5 billion.
It is understood the assets will include the six high-rise buildings that are being planned at PJ Sentral Garden City, a project by PJ Sentral Development Sdn Bhd.
PJ Sentral is a 70:30 joint venture between Nusa Gapurna Development Sdn Bhd (NGDSB) and the Selangor Economic Development Corp (PKNS).
Nusa Gapurna, controlled by Datuk Mohd Salim Fateh Din and his associates including Tan Sri Abdul Halim Ali, owns 60 per cent of NGDSB. The remaining stake in NGDSB is held by the Employees Provident Fund (EPF).
The construction of PJ Sentral Garden City located behind PJ Hilton Hotel will take seven to eight years beginning at the end of next year.
Business Times understands that it will comprise five custom-built office towers, each ranging from 20 to 45 floors, with estimated gross development value of RM2.6 billion.
The project will also include a five-star hotel, a 7,000 car park complex, a 1.6ha public park and a supportive retail element for food and beverage.
Sources familiar with the matter said that Nusa Gapurna is planning two business strategies for the assets.
"The first strategy is to form its own REIT, which is the primary option. It is more ideal because the company has ready tenants to give it good yield income. Financial advisers have been engaged for the matter," a source said.
The source said the second strategy is to sell the towers block by block to REIT managers or institutional investors with ready tenants.
According to the source, Nusa Gapurna is in negotiations with local public listed companies and corporate players to lease the buildings for a period of between 10 and 15 years.
"The company is finalising the design of the buildings with the anchor tenants. Construction will commence next year after getting all the necessary building approvals. Once these are settled, Nusa Gapurna will finalise the formation of the REIT," the source said.
The source said PJ Sentral Garden City will be built according to Multimedia Super Corridor Malaysia and Green Building Index specifications.
By Business Times
NUSA Gapurna Sdn Bhd, a low-key developer, is mul-ling grouping its assets to form a commercial real estate investment trust (REIT) by 2015, which could potentially be worth more than RM2.5 billion.
It is understood the assets will include the six high-rise buildings that are being planned at PJ Sentral Garden City, a project by PJ Sentral Development Sdn Bhd.
PJ Sentral is a 70:30 joint venture between Nusa Gapurna Development Sdn Bhd (NGDSB) and the Selangor Economic Development Corp (PKNS).
Nusa Gapurna, controlled by Datuk Mohd Salim Fateh Din and his associates including Tan Sri Abdul Halim Ali, owns 60 per cent of NGDSB. The remaining stake in NGDSB is held by the Employees Provident Fund (EPF).
The construction of PJ Sentral Garden City located behind PJ Hilton Hotel will take seven to eight years beginning at the end of next year.
Business Times understands that it will comprise five custom-built office towers, each ranging from 20 to 45 floors, with estimated gross development value of RM2.6 billion.
The project will also include a five-star hotel, a 7,000 car park complex, a 1.6ha public park and a supportive retail element for food and beverage.
Sources familiar with the matter said that Nusa Gapurna is planning two business strategies for the assets.
"The first strategy is to form its own REIT, which is the primary option. It is more ideal because the company has ready tenants to give it good yield income. Financial advisers have been engaged for the matter," a source said.
The source said the second strategy is to sell the towers block by block to REIT managers or institutional investors with ready tenants.
According to the source, Nusa Gapurna is in negotiations with local public listed companies and corporate players to lease the buildings for a period of between 10 and 15 years.
"The company is finalising the design of the buildings with the anchor tenants. Construction will commence next year after getting all the necessary building approvals. Once these are settled, Nusa Gapurna will finalise the formation of the REIT," the source said.
The source said PJ Sentral Garden City will be built according to Multimedia Super Corridor Malaysia and Green Building Index specifications.
By Business Times
Friday, September 7, 2012
IGB REIT IPO set to be 4th largest this year
KUALA LUMPUR: IGB Real Estate Investment Trust (REIT) has priced its initial public offering (IPO) to institutional investors at the top of an indicative range in a deal that will raise about US$260mil in the buoyant Malaysian market, according to sources.
The IPO was priced at RM1.25 per share, said sources with direct knowledge of the deal who were not authorised to speak publicly on the matter. The REIT had been offered to large investors such as pension and mutual funds at a RM1.15-to-RM1.25 range.
The deal is set to be the fourth largest IPO this year in Malaysia, and follows high-profile share sales by planter Felda Global Ventures Holdings Bhd (FGVH) in June and IHH Healthcare Bhd in July.
The institutional tranche of the offer was about 30 times oversubscribed, one of the sources said, underscoring the growing interest in Malaysian deals and the emergence of South-East Asian capital markets.
Equity issuance in Malaysia year-to-date stands at about US$7.9bil, compared with US$3.9bil last year, and Malaysian IPOs have gained 17% year-to-date on average, according to Thomson Reuters publication IFR.
The IGB REIT was likely to yield 5.1% to 5.2% a year, IFR reported, making it appealing to investors looking to bolster returns amid volatile stock markets and with global interest rates near record lows.
Demand was also buoyed by the relatively small size of the deal, compared with FGVH's US$3.1bil IPO and US$2.1bil IHH dual-listing.
The property trust owns two Kuala Lumpur shopping malls the Mid Valley Megamall and the Gardens Mall.
Meanwhile, MIDF Research has placed a fair valuation of RM1.43 per share based on the resilient earnings of Malaysian REITs. The research house said there had been strong interest in IGB REIT with the retail and institution portions of the offer for sale oversubscribed.
“Hence we believe our estimated fair value (capital gain potential of 14%) is not overly optimistic,” it said.
By Reuters
Monday, September 3, 2012
IGB REIT's IPO said oversubscribed
The institutional tranche of Malaysia’s IGB Real Estate Investment Trust’s US$266 million listing is already oversubscribed, said two sources with direct knowledge of the matter, signaling strong demand for the deal.
The deal is set to be Malaysia’s fourth largest IPO this year and the REIT may become the Southeast Asian nation’s largest REIT with a possible market value of up to RM4.25 billion (US$1.4 billion), topping Pavilion Real Estate Investment Trust’s RM4.05 billion.
The IGB REIT offered 469 million shares, or 70 percent, of its 670 million IPO shares to institutions at a price range of RM1.15-RM1.25 per unit.
The sources said the offer had been covered “multiple times”.
“Most is covered at the top range,” said one of the sources, who declined to be identified as the matter is not meant to be public.
A second source added that the subscriptions were evenly split between foreign and local investors.
The offer, which opened on Aug. 28, will close on Sept 6.
The retail portion, offered at a maximum price of RM1.25 per unit, closes on Tuesday, according to a term sheet seen earlier by Reuters.
The property trust, which owns two Kuala Lumpur shopping malls — the Mid Valley Megamall and the Gardens Mall — hired CIMB Investment Bank and Hong Leong Investment Bank as the principal advisers and joint managing underwriters for the IPO.
CIMB, Credit Suisse and Hong Leong are the joint global coordinators. CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JP Morgan and Maybank are the joint book runners.
The joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank.
By Reuters
The deal is set to be Malaysia’s fourth largest IPO this year and the REIT may become the Southeast Asian nation’s largest REIT with a possible market value of up to RM4.25 billion (US$1.4 billion), topping Pavilion Real Estate Investment Trust’s RM4.05 billion.
The IGB REIT offered 469 million shares, or 70 percent, of its 670 million IPO shares to institutions at a price range of RM1.15-RM1.25 per unit.
The sources said the offer had been covered “multiple times”.
“Most is covered at the top range,” said one of the sources, who declined to be identified as the matter is not meant to be public.
A second source added that the subscriptions were evenly split between foreign and local investors.
The offer, which opened on Aug. 28, will close on Sept 6.
The retail portion, offered at a maximum price of RM1.25 per unit, closes on Tuesday, according to a term sheet seen earlier by Reuters.
The property trust, which owns two Kuala Lumpur shopping malls — the Mid Valley Megamall and the Gardens Mall — hired CIMB Investment Bank and Hong Leong Investment Bank as the principal advisers and joint managing underwriters for the IPO.
CIMB, Credit Suisse and Hong Leong are the joint global coordinators. CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JP Morgan and Maybank are the joint book runners.
The joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank.
By Reuters
Wednesday, August 29, 2012
Confidence in IGB REIT
Tight price range for institutional tranche of IPO is good indication
KUALA LUMPUR: IGB Real Estate Investment Trust has set a tight price range for the institutional tranche of its up to US$266mil (RM823mil) initial public offering (IPO), according to a term sheet seen by Reuters, indicating confidence in demand for the offer.
The IPO, potentially the fourth largest in the South-East Asian country this year, will be offered to institutions at a price range of RM1.15 to RM1.25 per unit, the term sheet showed. IGB REIT launched its retail offer on Monday at a maximum price of RM1.25 per unit.
A wide indicative price range for an IPO would show that the sponsors are testing the strength of demand for the offering, while a narrow range shows they are reasonably certain about the take-up.
The unit of property firm IGB Corp Bhd is offering up to 670 million units in the IPO, comprising 469 million units for sale to institutional investors and another 201 million to employees and the public. Listing is set for Sept 21.
The bookbuilding range translates to a forecast 2013 yield of 5.4% to 5.8%, according to the term sheet. The book opened yesterday and closes no later than Sept 6.
Based on the top end of the IPO price, IGB REIT would have a post-IPO market capitalisation of RM4.25bil, the largest in Malaysia ahead of Pavilion Real Estate Investment Trust's RM4.05bil.
The property trust, which owns two Kuala Lumpur shopping malls the Mid Valley Megamall and the Gardens Mall expects to use the IPO proceeds for future expansion.
It has hired CIMB Investment Bank and Hong Leong Investment Bank as the principal advisers and joint managing underwriters for the IPO.
CIMB, Credit Suisse and Hong Leong are the joint global coordinators, while CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JPMorgan and Maybank are the joint book runners. Joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank.
By Reuters
KUALA LUMPUR: IGB Real Estate Investment Trust has set a tight price range for the institutional tranche of its up to US$266mil (RM823mil) initial public offering (IPO), according to a term sheet seen by Reuters, indicating confidence in demand for the offer.
The IPO, potentially the fourth largest in the South-East Asian country this year, will be offered to institutions at a price range of RM1.15 to RM1.25 per unit, the term sheet showed. IGB REIT launched its retail offer on Monday at a maximum price of RM1.25 per unit.
A wide indicative price range for an IPO would show that the sponsors are testing the strength of demand for the offering, while a narrow range shows they are reasonably certain about the take-up.
The unit of property firm IGB Corp Bhd is offering up to 670 million units in the IPO, comprising 469 million units for sale to institutional investors and another 201 million to employees and the public. Listing is set for Sept 21.
The bookbuilding range translates to a forecast 2013 yield of 5.4% to 5.8%, according to the term sheet. The book opened yesterday and closes no later than Sept 6.
Based on the top end of the IPO price, IGB REIT would have a post-IPO market capitalisation of RM4.25bil, the largest in Malaysia ahead of Pavilion Real Estate Investment Trust's RM4.05bil.
The property trust, which owns two Kuala Lumpur shopping malls the Mid Valley Megamall and the Gardens Mall expects to use the IPO proceeds for future expansion.
It has hired CIMB Investment Bank and Hong Leong Investment Bank as the principal advisers and joint managing underwriters for the IPO.
CIMB, Credit Suisse and Hong Leong are the joint global coordinators, while CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JPMorgan and Maybank are the joint book runners. Joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank.
By Reuters
Tuesday, August 28, 2012
IGB REIT may buy properties in the US and Europe
KUALA LUMPUR: IGB Real Estate Investment Trust (IGB REIT) may consider inorganic expansion opportunities such as acquisitions in the United States or Europe in view of the dire financial situation there.
“In Europe or the United States you can get some properties at way below replacement costs. That is an area we can pursue for potential acquisitions.
“But what we prefer is to construct the mall ourselves and manage it before injecting it into the REIT,” IGB REIT Management Sdn Bhd managing director Robert Tan said at the launch of the IGB REIT prospectus here yesterday.
IGB REIT Management is the company that will manage IGB REIT.
IGB REIT is a unit of IGB Corp Bhd and Tan is also group managing director of IGB Corp.
Based on the retail price of RM1.25 per unit, IGB REIT will provide a distribution yield of 5.1% on an annualised basis for the six-month forecast period ending Dec 31.
“We have to ensure that The Gardens and the Mid Valley Megamall are well-managed. Hopefully these investments will continue to see year-on-year growth and thereafter we will look at acquisitions,” Tan said.
A total of 670 million units of IGB REIT will be offered. Upon listing, IGB REIT will become the largest retail REIT in Malaysia with an asset value of RM4.6bil.
The listing will see the REIT being offered to institutional shareholders (13.8%), eligible IGB shareholders (3.5%), eligible directors and employees (1.4%) while the Malaysian public will have the smallest share allocation of 1%.
The opening date for the institutional offering will be on Aug 28 and the closing date on Sept 6.
Balloting for the retail portion will be conducted on Sept 7 and IGB REIT will be listed on Sept 21.
The Mid Valley Megamall has an appraised value of RM3.44bil with net lettable area of 1.72 million sq ft and an occupancy rate of 99.8%, It has 6,092 car park bays.
The Gardens has an appraised value of RM1.16bil with net lettable area of 817,053 sq ft and an occupancy rate of 99.7%. It has 4,128 car park bays.
By The Star
IGB REIT to grow retail assets
IGB Real Estate Investment Trust (REIT), a unit of property developer IGB Corporation Bhd and en route to a listing on Bursa Malaysia's Main Market, will focus actively on growing its two retail assets as its main strategy in the next few years besides considering potential acquisitions overseas.
IGB Corp's 75 per cent subsidiary KrisAssets Holdings Bhd, which owns the two retail assets under the IGB REIT -- Mid Valley Megamall and The Gardens Mall -- has formed IGB REIT Management Sdn Bhd to manage and set the strategic direction of the trust.
"Both the assets have a long way to go as it takes time for the properties to mature.
"After listing, we have to make sure these properties are well managed and investors see a year-to-year growth of about 5-8 per cent of our revenue given the increasing competition," IGB REIT Management Sdn Bhd Managing Director Robert C M Tan told reporters at the trust's prospectus launch.
However, if any potential opportunities arise for acquisition locally or overseas, the manager would look into it under the REIT, he said.
"At the moment, the Europe and United States markets have good deals and we can look at some properties there for acquisition, preferably completed or mostly conpleted properties," he said adding that it would prefer to construct and manage the properties.
He also said the recent acquisition of Southkey Megamall Sdn Bhd would take about three to five years from now to develop.
IGB REIT is set to be Malaysia's largest retail REIT by asset value with the listing slated on Sept 21.
The trust, which offers 670 million units at an initial retail price of RM1.25 per unit, is expected to raise RM837.5 million from the initial public offering with a forecast 5.1 per cent yield annualised.
"The offer price is a fair deal looking at other REITs' performance, and we are very conservative when it comes to pricing," Tan said.
He said the listing would provide an avenue for investors to invest in one of the largest REITs in Malaysia with a total net lettable area of approximately 2.5 million sq ft (232,258 sq m).
Upon listing, IGB REIT is expected to achieve a market capitalisation of RM4.25 billion.
IGB Corp is optimistic of its retail property market given the continuous earnings growth against the backdrop of uncertainties in the global economy and competition, he added.
By Bernama
IGB Corp's 75 per cent subsidiary KrisAssets Holdings Bhd, which owns the two retail assets under the IGB REIT -- Mid Valley Megamall and The Gardens Mall -- has formed IGB REIT Management Sdn Bhd to manage and set the strategic direction of the trust.
"Both the assets have a long way to go as it takes time for the properties to mature.
"After listing, we have to make sure these properties are well managed and investors see a year-to-year growth of about 5-8 per cent of our revenue given the increasing competition," IGB REIT Management Sdn Bhd Managing Director Robert C M Tan told reporters at the trust's prospectus launch.
However, if any potential opportunities arise for acquisition locally or overseas, the manager would look into it under the REIT, he said.
"At the moment, the Europe and United States markets have good deals and we can look at some properties there for acquisition, preferably completed or mostly conpleted properties," he said adding that it would prefer to construct and manage the properties.
He also said the recent acquisition of Southkey Megamall Sdn Bhd would take about three to five years from now to develop.
IGB REIT is set to be Malaysia's largest retail REIT by asset value with the listing slated on Sept 21.
The trust, which offers 670 million units at an initial retail price of RM1.25 per unit, is expected to raise RM837.5 million from the initial public offering with a forecast 5.1 per cent yield annualised.
"The offer price is a fair deal looking at other REITs' performance, and we are very conservative when it comes to pricing," Tan said.
He said the listing would provide an avenue for investors to invest in one of the largest REITs in Malaysia with a total net lettable area of approximately 2.5 million sq ft (232,258 sq m).
Upon listing, IGB REIT is expected to achieve a market capitalisation of RM4.25 billion.
IGB Corp is optimistic of its retail property market given the continuous earnings growth against the backdrop of uncertainties in the global economy and competition, he added.
By Bernama
Monday, August 27, 2012
KLCC Prop ready to stage follow-through rebound
The benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) hit an all-time high of 1,655.39 points last Wednesday before easing off to close at 1,648.22 at the end of the holiday-shorterend week. Its lacklustre performance stemmed mainly from the weaknesses on the US and Asian stock markets.
The benchmark index hit an intra-week and all-time high of 1,655.39 on Wednesday before slipping back to an intra-week low of 1,647.90 on Thursday, giving a trading range of 7.49 points.
The FBM KLCI recorded a week-on-week loss of 1.57 points, or 0.10 per cent.
Among other indices, the FTSE Bursa Malaysia Small Cap Index eased 73.29 points, or 0.59 per cent, to 12,308.61 while the FTSE Bursa Malaysia ACE Market Index gained 71.68 points, or 1.58 per cent, to 4,612.68.
On the foreign front, the New York Stock Exchange consolidated its recent gains last week. The Dow Jones Industrial Average shed 0.88 per cent.
The Hong Kong stock market continued to consolidate and the Hang Seng Index fell 1.14 per cent.
In Tokyo, the Nikkei 225 Index posted a week-on-week loss of 1 per cent.
Technical pullbacks in index-linked counters sent the FBM KLCI below its immediate support of 1,650 points when it closed at 1,648.22 on Friday. Selected property counters managed to outperform some of the Main Board counters last week.KLCC Property Holdings Bhd was one of these counters.
KLCC Property staged a technical rebound last week. Its daily price trend closed at RM5.65 on Friday, posting a week-on-week gain of 36 sen, or 6.81 per cent.
The following are the readings of some of the counter's technical indicators:
Moving Averages: KLCC Property's daily price trend stayed above all its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index stayed above the support of its neutral reference line last week.
On Balance Volume (OBV): Its short-term OBV stayed above the support of its 10-day moving averages.
Relative Strength Index (RSI): Its 14-day RSI had since stayed above the 50 level. Its technical reading stood at the 71.72 per cent level at the market close on Friday.
Outlook
Chartwise, KLCC Property's monthly price trend staged a technical breakout of its immediate overhead resistance last week. This augurs well for its intermediate- to long-term perspectives.
Its weekly price trend staged a successful technical breakout of the neckline of its double-bottom pattern formation (see KLCC Property's weekly price chart B1:B2) last week. At the market close last Friday, it remained above its intermediate downside support (B1:B2).
KLCC Property's daily price trend traced out a stair-stepped uptrend in a technical breakout of its short-term overhead resistance (see KLCC Property's daily price trend B3:B4). It continued to stay above its intermediate-term uptrend support (B1:B2) at the end of the week.
Its daily fast MACD (Moving Average Convergence Divergence indicator ) traced out a "golden cross" of its daily slow MACD at the market close last Friday. This bodes well for its short-term perspectives.
Its weekly and monthly fast MACDs continued to stay above their respective slow MACDs.
Its 14-day Relative Strength Index (RSI) stood at the 71.72 per cent level. Its 14-week and 14-month RSI were at the 80.98 and 88.61 per cent levels respectively.
Combining the bullish technical breakouts on its weekly and daily charts (B1:B2 on its weekly chart and C3:C4 on its daily chart), KLCC Property's daily price trend is poised to stage a follow-through technical rebound, and rechallenge its immediate overhead resistance (RM5.75-RM6.00) over the intermediate term.
The subject expressed above is based purely on technical analyses and opinions of the writer. It is not a solicitation to buy or sell.
By Business Times
The FBM KLCI recorded a week-on-week loss of 1.57 points, or 0.10 per cent.
Among other indices, the FTSE Bursa Malaysia Small Cap Index eased 73.29 points, or 0.59 per cent, to 12,308.61 while the FTSE Bursa Malaysia ACE Market Index gained 71.68 points, or 1.58 per cent, to 4,612.68.
On the foreign front, the New York Stock Exchange consolidated its recent gains last week. The Dow Jones Industrial Average shed 0.88 per cent.
The Hong Kong stock market continued to consolidate and the Hang Seng Index fell 1.14 per cent.
In Tokyo, the Nikkei 225 Index posted a week-on-week loss of 1 per cent.
Technical pullbacks in index-linked counters sent the FBM KLCI below its immediate support of 1,650 points when it closed at 1,648.22 on Friday. Selected property counters managed to outperform some of the Main Board counters last week.KLCC Property Holdings Bhd was one of these counters.
KLCC Property staged a technical rebound last week. Its daily price trend closed at RM5.65 on Friday, posting a week-on-week gain of 36 sen, or 6.81 per cent.
The following are the readings of some of the counter's technical indicators:
Moving Averages: KLCC Property's daily price trend stayed above all its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
Momentum Index: Its short-term momentum index stayed above the support of its neutral reference line last week.
On Balance Volume (OBV): Its short-term OBV stayed above the support of its 10-day moving averages.
Relative Strength Index (RSI): Its 14-day RSI had since stayed above the 50 level. Its technical reading stood at the 71.72 per cent level at the market close on Friday.
Outlook
Chartwise, KLCC Property's monthly price trend staged a technical breakout of its immediate overhead resistance last week. This augurs well for its intermediate- to long-term perspectives.
Its weekly price trend staged a successful technical breakout of the neckline of its double-bottom pattern formation (see KLCC Property's weekly price chart B1:B2) last week. At the market close last Friday, it remained above its intermediate downside support (B1:B2).
KLCC Property's daily price trend traced out a stair-stepped uptrend in a technical breakout of its short-term overhead resistance (see KLCC Property's daily price trend B3:B4). It continued to stay above its intermediate-term uptrend support (B1:B2) at the end of the week.
Its daily fast MACD (Moving Average Convergence Divergence indicator ) traced out a "golden cross" of its daily slow MACD at the market close last Friday. This bodes well for its short-term perspectives.
Its weekly and monthly fast MACDs continued to stay above their respective slow MACDs.
Its 14-day Relative Strength Index (RSI) stood at the 71.72 per cent level. Its 14-week and 14-month RSI were at the 80.98 and 88.61 per cent levels respectively.
Combining the bullish technical breakouts on its weekly and daily charts (B1:B2 on its weekly chart and C3:C4 on its daily chart), KLCC Property's daily price trend is poised to stage a follow-through technical rebound, and rechallenge its immediate overhead resistance (RM5.75-RM6.00) over the intermediate term.
The subject expressed above is based purely on technical analyses and opinions of the writer. It is not a solicitation to buy or sell.
By Business Times
Tuesday, August 14, 2012
KLCC Property posts net profit of RM91.6mil
KUALA LUMPUR: KLCC Property Holdings Bhd posted a net profit of RM91.6mil, or 9.81 sen per share for the second quarter ended June 30. Its revenue stood at RM288.6mil during the quarter.
For the six months ended June 30, KLCC Property posted a net profit of RM193.1mil on revenue of RM564.4mil.
On March 2, KLCC Property announced the change of financial year-end from March 31 to Dec 31 beginning from April 2011. As a result, there is no equivalent comparative quarter.
KLCC Property’s pre-tax profit of RM184.4mil achieved in the second quarter was up by RM2.5mil or 1.4% higher than the preceding quarter mainly due to improved operating profit. Its revenue of RM288.6mil for the second quarter increased by RM12.8mil when compared with the preceding quarter attributable mainly to the higher revenue from hotel, the Menara 3 Petronas office and improved revenue from retail segment (Suria KLCC and Menara 3 Petronas).
“The directors are of the view that the results for the remaining 2012 period will remain stable due to long-term office tenancies and expected improvement in retail occupancy. The hotel segment will continue to trade in a competitive environment,” it said in the notes accompanying its financial results.
By The Star
For the six months ended June 30, KLCC Property posted a net profit of RM193.1mil on revenue of RM564.4mil.
On March 2, KLCC Property announced the change of financial year-end from March 31 to Dec 31 beginning from April 2011. As a result, there is no equivalent comparative quarter.
KLCC Property’s pre-tax profit of RM184.4mil achieved in the second quarter was up by RM2.5mil or 1.4% higher than the preceding quarter mainly due to improved operating profit. Its revenue of RM288.6mil for the second quarter increased by RM12.8mil when compared with the preceding quarter attributable mainly to the higher revenue from hotel, the Menara 3 Petronas office and improved revenue from retail segment (Suria KLCC and Menara 3 Petronas).
“The directors are of the view that the results for the remaining 2012 period will remain stable due to long-term office tenancies and expected improvement in retail occupancy. The hotel segment will continue to trade in a competitive environment,” it said in the notes accompanying its financial results.
By The Star
E&O loses more than RM400m in market value
The shares of Eastern & Oriental dived after the Securities Commission said it's investigating trading related to the stock.
EASTERN & Oriental Bhd (E&O) lost more than RM400 million of its market capitalisation as nervous investors sold shares of the property developer after the Securities Commission (SC) said it's investigating trading related to the stock.
From the word go, E&O shares were in negative territory, opening the trading session some 33 sen lower at RM1.57 sen a share. It ended yesterday at RM1.54 with 24.8 million shares exchanging hands.
CIMB, in a research report yesterday, had advised investors to wait for the shares to drop to the RM1.50 level before they start accumulating the shares again.
Dealers said that the report helped stymie panic-selling in E&O's mother share, but it did not translate to the E&O call warrants, which had a free-for-all selldown.
The E&O call warrants, which expire at the end of this month, opened the trading day some 81 per cent lower at three sen. It ended the day at 3.5 sen per call warrant with some 30 million call warrants traded.
Just last Friday, E&O was among the most sought-after stock on the exchange, with investors chasing the shares up to the maximum limit-up level, following a Web-based news portal's report that the SC will order Sime Darby Bhd to make a general offer for the E&O shares which they do not own.
A year ago, Sime Darby had bought some 30 per cent of E&O, a niche based high-end property developer from Penang.
The report said that the decision was made after a review by the commission's leadership under its new chairman Datuk Ranjit Ajit Singh.
However, the same evening, the SC released a statement saying that its position on the general offer requirement remained unchanged as per its statement issued October last year, which said that Sime Darby does not have to make a general offer for the remaining shares in E&O.
The regulator also added that it has started examining the trading activities associated with the relevant counters arising from the rumours.
By Business Times
EASTERN & Oriental Bhd (E&O) lost more than RM400 million of its market capitalisation as nervous investors sold shares of the property developer after the Securities Commission (SC) said it's investigating trading related to the stock.
CIMB, in a research report yesterday, had advised investors to wait for the shares to drop to the RM1.50 level before they start accumulating the shares again.
Dealers said that the report helped stymie panic-selling in E&O's mother share, but it did not translate to the E&O call warrants, which had a free-for-all selldown.
The E&O call warrants, which expire at the end of this month, opened the trading day some 81 per cent lower at three sen. It ended the day at 3.5 sen per call warrant with some 30 million call warrants traded.
Just last Friday, E&O was among the most sought-after stock on the exchange, with investors chasing the shares up to the maximum limit-up level, following a Web-based news portal's report that the SC will order Sime Darby Bhd to make a general offer for the E&O shares which they do not own.
A year ago, Sime Darby had bought some 30 per cent of E&O, a niche based high-end property developer from Penang.
The report said that the decision was made after a review by the commission's leadership under its new chairman Datuk Ranjit Ajit Singh.
However, the same evening, the SC released a statement saying that its position on the general offer requirement remained unchanged as per its statement issued October last year, which said that Sime Darby does not have to make a general offer for the remaining shares in E&O.
The regulator also added that it has started examining the trading activities associated with the relevant counters arising from the rumours.
By Business Times
UM Land share holders advised to accept takeover offer
PETALING JAYA: Independent adviser Affin Investment Bank Bhd has advised minority shareholders of United Malayan Land Bhd (UM Land) to accept the takeover offer of RM2.50 per share by Seleksi Juang Sdn Bhd (SJSB) and parties acting in concert (PAC), who hold a combined 77.52%.
It said yesterday the RM2.50 offer price per share was fair and reasonable, as it was a 13 sen premium to the closing market price of RM2.37 on July 11, which was the last trading day prior to the takeover notice.
Affin Investment Bank also said UM Land's shares had not traded at or above the offer price for the past five years. “Holders should note that there is no assurance that the market price of the UM Land shares will remain trading at this level in the future,” it said in a circular to shareholders.
The stock traded at an average monthly volume of 881,758 shares, or 1.30% of the free float for the past year leading up to the offer date. Affin Investment cautioned the minority shareholders holding the remaining 22.48% of UM Land that the illiquidity of the shares may impact their ability to realise their investment in the open market.
It said as SJSB and the PAC held 77.52% of UM Land's total issued shares, irregardless of the level of acceptance of the offer, the company did not comply with the public shareholding spread requirement. SJSB and the PAC plan to delist the company from Bursa Malaysia Main Market.
Due to the fact that as at the date of notice, both SJSB and the PAC collectively held more than a 50% stake, the offer is not conditional upon any minimum number of valid acceptances of the offer shares being received.
If the company is delisted, its shares will no longer be able to be traded. “Holders should note that they may not be able to realise their investments at the same consideration under the offer and may encounter difficulties in disposing them,” Affin Investment said.
The offerors intend to privatise the company in order to have greater flexibility to plan and execute long-term business opportunities. It has a number of projects in the pipeline, which comprises of township and niche developments.
UM Land expects its township developments to contribute to earnings in the long term, as it requires an extended period of time. This may affect the company's ability to pay dividends in the future.
The company has been paying dividends for the past five years. It adopted a dividend policy of a 25% payout ratio, effective financial year ending Dec 31, 2012 (FY12).
As dividend policy is subject to availability of future investments and cashflow position of the company, there is no assurance to shareholders that the payout ratio will hold at the same level.
UM Land had announced on July 12 that had it received a takeover offer from SJSB and the PAC to buy the remaining 22.48%, or 67.81 million shares, not already owned by them for a cash consideration of RM2.50 per share.
Analysts had said that it was a good deal for the parties offering to buy out the company as the offer price represented a discount of about 18% from UM Land's net asset value per share of RM3.04.
In the first quarter ending March 31, UM Land posted a lower net profit of RM136,000 compared with RM13.97mil in the same period last year. Revenue had also fallen to RM51.6mil from RM82.2mil previously. UM Land shares closed at RM2.49 yesterday.
By The Star
It said yesterday the RM2.50 offer price per share was fair and reasonable, as it was a 13 sen premium to the closing market price of RM2.37 on July 11, which was the last trading day prior to the takeover notice.
Affin Investment Bank also said UM Land's shares had not traded at or above the offer price for the past five years. “Holders should note that there is no assurance that the market price of the UM Land shares will remain trading at this level in the future,” it said in a circular to shareholders.
The stock traded at an average monthly volume of 881,758 shares, or 1.30% of the free float for the past year leading up to the offer date. Affin Investment cautioned the minority shareholders holding the remaining 22.48% of UM Land that the illiquidity of the shares may impact their ability to realise their investment in the open market.
It said as SJSB and the PAC held 77.52% of UM Land's total issued shares, irregardless of the level of acceptance of the offer, the company did not comply with the public shareholding spread requirement. SJSB and the PAC plan to delist the company from Bursa Malaysia Main Market.
Due to the fact that as at the date of notice, both SJSB and the PAC collectively held more than a 50% stake, the offer is not conditional upon any minimum number of valid acceptances of the offer shares being received.
If the company is delisted, its shares will no longer be able to be traded. “Holders should note that they may not be able to realise their investments at the same consideration under the offer and may encounter difficulties in disposing them,” Affin Investment said.
The offerors intend to privatise the company in order to have greater flexibility to plan and execute long-term business opportunities. It has a number of projects in the pipeline, which comprises of township and niche developments.
UM Land expects its township developments to contribute to earnings in the long term, as it requires an extended period of time. This may affect the company's ability to pay dividends in the future.
The company has been paying dividends for the past five years. It adopted a dividend policy of a 25% payout ratio, effective financial year ending Dec 31, 2012 (FY12).
As dividend policy is subject to availability of future investments and cashflow position of the company, there is no assurance to shareholders that the payout ratio will hold at the same level.
UM Land had announced on July 12 that had it received a takeover offer from SJSB and the PAC to buy the remaining 22.48%, or 67.81 million shares, not already owned by them for a cash consideration of RM2.50 per share.
Analysts had said that it was a good deal for the parties offering to buy out the company as the offer price represented a discount of about 18% from UM Land's net asset value per share of RM3.04.
In the first quarter ending March 31, UM Land posted a lower net profit of RM136,000 compared with RM13.97mil in the same period last year. Revenue had also fallen to RM51.6mil from RM82.2mil previously. UM Land shares closed at RM2.49 yesterday.
By The Star
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