Wednesday, April 18, 2012


A-Reit: FYMar12 results inline, with stable underlying trends.
Full yr DPU of 13.6cts, +2.5% yoy, translating to 6.7% yield. 4Q DPU was 3.5cts, +7% yoy after adjusting for the rights issue.
NPI was +8.5% yoy, boosted mainly by new acq but impacted by higher expenses. NPI growth in the business park segment was the strongest (+30% yoy) driven by unvmts while the hi-tech segment was flat due to higher expenses.

Occupancy for the group dipped to 94.3% (96.0% in 3QFY12) due to low takeup rates (25%) at FoodAxis @ Senoko post redevelopment.
However, on a same-store basis, occupancy rates remained stable.
Positive rental renewal rates (5%-16%) were achieved across all segments.
The group has 13.8% of its leases due for expiry in FY13 and mgt expects rental renewals to remain in the positive territory as average passing rentals on its expiring leases are trending below market rents.

A-Reit’s portfolio grew by 17% yoy to $6.2b largely due to new investments. Mgt expects the pace of acquisitions to slow in FY13. Gearing for the group stands at 36.6% with average debt cost at 3.0%. Book value stands at $1.88/unit.

UOBK rates at Sell with raised TP $1.90 from $1.85.
BOA-ML has an Underperform rating, but raises TP to $2.05 from $2.
Morgan Stanley keeps at Equal weight.
JPM keeps at neutral with TP $2.20.
StanChart upgrades to Inline from underperform, raises TP to $2.07 from $1.93 on less negative rent outlook.
Deutsche keeps at Buy with TP $2.31.

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