HPH Trust

HPH Trust: OCBC maintains Buy with US$0.84 TP. Note that according to Dow Jones, HPH Trust has secured a US$3.6b refinancing loan which comprises three tranches – a US$1b one-year loan, a US$1.6b three-year loan and a US$1b five-year loan. The one-year tranche is at an interest rate of 0.6% above Libor, while the three-year and five-year tranches are 1.1% and 1.4% above Libor respectively. On a blended basis, estimate that the interest rate cost for this loan is ~1.5%, dramatically lower than the 2.5% rate which management had previously guided. Estimate that HPHT is currently trading at an attractive FY14F dividend yield of 7.9%.