Singapore Land

Singapore Land: Announced 1Q12 results which was in-line, as 1Q12 core net profit at $55.5m (+14% YoY, +2% QoQ), while rev at $195.5m (+41% YoY, -1% QoQ). Going forward, Mgt concedes that office sector headwinds remain, putting downward pressure on office rents, while Pan Pacific Hotel experienced a surprising 10% QoQ drop in rev, even ahead of its scheduled closure from April to August 2012 for major renovation works. Sales of grp’s freehold residential project, The Trizon, remain sluggish, even though ASPs have been holding firm at around $1,500 psf. 47 out of the 289 units remain unsold. On back of this, Kim Eng maintains Sell with $4.89 TP, pegged to a 50% discount to RNAV.