Friday, March 13, 2015


OUEHT: CIMB hosted NDR in KL. Attention was focused on the Crowne Plaza Changi and the Crowne Plaza Extension acquisitions, which will be done at an initial 4.5% yield, and will be earnings accretive.

Income support of $7.5m to be drawn down over three years will provide further stability to the REIT. CIMB thinks the acquisition is positive and will capture demand when Terminal 4 and 5 are completed.

Given its current aggregate leverage level at 41%, equity fund raising can be expected for the acquisition for Crown Plaza extension, though both the acquisitions will be yield accretive.

On tourism landscape, Mandarin Orchard and Mandarin Gallery is expected to deliver stable earnings this year.

CIMB maintains Add with TP of $1.01

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