SingLand

SingLand: 3Q13 net profit was $49.4m (+2% q/q; -13% y/y), within expectations as a dip in residential profits was offset by improved hotel income. Gross rental from SingLand’s investment properties edged up 3% q/q and 2% y/y to $59.4m, stemming 2 quarters of marginal decline. Revenue from Pan Pacific Singapore improved to $29.4m in the quarter to $29.4m (+10% q/q, +276% y/y), since reopening in Sep 2012 following renovation. MBKE noted recent residential launches had mixed responses as only 27 of 109 units were sold at Mon Jervois (ASP ~$2,000 psf). JV with UOL, Thomson Three was much better received, with 83% of its 320 units were sold at ASP ~$1,350. MBKE reckons that the strategy for upcoming Alex Residences is to keep absolute prices affordable, as nearly half of the 429 units are less than 700 sq ft in size, while remaining three-bedders no bigger than 1,141 sq ft. ASP of this project is expected to be ~$1,750. MBKE sees few positive catalysts at this point and residential projects are not significantly RNAV accretive while recurrent income will likely remain flattish going into FY14. The house maintains Hold with TP trimmed to $9.08 (previously $9.75)