SG Market (24 Apr 15)

Singapore stocks are expected to open higher, taking cue from the positive close in Wall Street overnight, buoyed by tech stocks, which saw the Nasdaq closing at a record high since March 2000.

Regional bourses are trading higher this morning in Sydney (+1.1%) and Seoul (+0.7%), although Tokyo is down 0.3%.

Technically, key support/resistance levels for the STI are tipped at 3,468 and 3,561 respectively.

Stocks to watch:
*Suntec REIT: 1QFY15 results were below estimates, with DPU at 2.23¢ (flat y/y), representing an annualized yield of 4.8%. Adjusting for its share placement last year, DPU should have been up 6%. Gross revenue came in at $74.5m (+12.9%) and NPI at $51.4m (+17.3%), mainly led by the opening of Suntec City mall (Phase 2) following the completion of the asset enhancement works, and higher revenue achieved by Suntec Convention & Exhibition Centre. Office portfolio occupancy was at 99.6% with retail at 93.5%, gearing ratio relatively unchanged at 34.8%, with average debt cost at 2.53% and tenor of 3.9 years. NAV/unit of $2.085.

*Mapletree Greater China: 4QFY15 results were above estimates, with DPU at 1.74¢ (+24.1%) taking FY15 DPU to 6.54¢ (+15.4%), representing a yield of 6.1%. Gross revenue for the quarter rose 22.1% to $76.2m and NPI was up 24.5% to $62.3m, as strong rental reversions from new leases signed in the quarter resulted in a 16.7% growth in Festival Walk’s revenue and 19.3% growth in Gateway Plaza’s revenue. Portfolio occupancy rate stood at 98.8% (3QFY15 at 99.4%), gearing ratio fell 1.8ppt to 36.2%, with average debt cost at 2.55% and tenor of 2.75 years. NAV/unit of $1.198.

*Ascendas REIT: 4QFY15 results in line, with DPU up 3.3% to 3.71¢ taking FY15 DPU to 14.6¢ (+2.5%), representing a yield of 5.6%. Gross revenue for the quarter inched higher by 1.2% to $173.8m while NPI climbed 2.3% to $117.2m, mainly due to the contribution of Aperia, which was acquired in Aug ’14, and higher occupancy in certain properties, partially offset by the impact from the changes in the lease structure arising from the conversion of single-tenant to multi-tenants. Occupancy improved 0.9ppt to 87.7% with WALE of 3.8 years. Gearing ratio stood at 33.5% with all-in cost of debt of 2.7%. NAV/unit of $2.08

*Ascott REIT: 1Q15 results inline, with DPU and distributable income inching higher 1% to 1.76¢ and $27m respectively, representing an annualized yield of 5.5%. Gross revenue grew 12% to $90m, while gross profit increased 10% to $43.1m, mainly contributed by properties acquired in 2014, partially offset by lower revenue from existing properties and expiry of deed of yield protection for Somerset West Lake Hanoi. Aggregate leverage stood at 38.7%, with average debt cost of 2.9%. NAV/unit of $1.36.

*Frasers Commercial Trust: 2QFY15 results in line, with DPU up 16% to 2.38¢, representing an annualized yield of 6.2%. Gross revenue grew 22% to $34.8m, while NPI climbed 14% to $24.7m, from higher contribution from Alexandra Technopark, China Square Central and 55 Market Street, partially offset by the weakening AUD and lower occupancy for Central Park. Occupancy stood at 96.5% with WALE of 3.5 years. Aggregate leverage stood at 37.2% with all-in borrowing cost of 2.9%. NAV/unit of $1.55.

*SGX: Exchange seeking to double market value of companies listed on SGX in 3-5 years as Asian bourses compete for IPOs, highlighting that it will happen through listings from China, India and from other locations.

*OCBC: Sees its fresh expansion into Myanmar as catalyst for growth in its commercial banking business, as it opened its 1st branch in Myanmar. Expect to double revenue from regional business of its SME and mid-cap clients within 3 years.