Wednesday, January 17, 2018

SG Market (17 Jan 18)

- Some profit-taking activity could occur after Wall Street indices retreated from a record intra-day high, while the STI has hit its immediate resistance level at 3,550.
- Downside support for STI remains at 3,470, while the next upside resistance is at 3,570.

*ESR-REIT (former Cambridge REIT)
- 4Q17 DPU slumped 6.7% to 0.929¢, partially dragged by an enlarged unitbase.
- This took FY17 DPU to 3.853¢ (-7.7%), in line with estimates.
- For the quarter, gross revenue slipped 2.2% to $27.2m amid income loss from a lease expiry at 3 Pioneer Sector 3 as well as the impact from two divested properties.
- NPI, however, inched 1.2% higher to $19.9m on reduced property expenses.
- Portfolio occupancy improved 1.9ppt q/q to 93%, while aggregate leverage rose to 39.6% (+2.9ppt q/q).
- Offers 6.7% yield and trades at 0.97x P/B.

*Mapletree Greater China Commercial Trust
- Expanded its investment mandate to include Japan, beyond its current region in Greater China.
- The expansion is aimed at improving unitholder distributions and better diversify its portfolio returns.
- Offers an indicative yield of 5.9% and trades at 1x P/B.

- Awarded a $5m contract to build a house for the group's Deputy CEO and an immediate family member of the controlling shareholder.
- The project shall be completed 16 months following issuance of the BCA approval.
- Trades at 5.4x trailing P/E and 0.88x P/B.

- SEPCOIII Electric was ordered to pay Hyflux US$2.7m in interest and US$4.2m in arbitration costs following settlement of a dispute.
- To recap, the dispute arose out of a contract involving EPC work for a desalination facility in Salalah, Oman.
- This brought total payment to US$23m, of which US$16.1m had been paid under the interim award in Sep '17.

*First Ship lease Trust
- Disposed a 20,938 DWT chemical tanker, FSL Tokyo, for US$13.8m.
- An impairment charge of US$9m in 4Q17 will be recorded post-disposal.
- Proceeds from the sale will be used to reduce outstanding debt.

*LCT Holdings
- Guided for a 2Q18 loss due to increased maintenance cost for an investment property in Xi'an, China.
- Results slated to be released on or before 14 Feb.

- Acquired 109m shares (7.48% share capital) in JEP via the market at $5.7m, or 5.23¢ apiece.
- Separately, JEP saw four married trades totalling 320m shares at 7¢ each.

*Top Global
- Aborting its proposed acquisition of the property at 273 & 275 South Bridge Road, as the proposed change of use of the 2nd to 4th floor into a hotel or hostel could not be fulfilled.
- As such, the group has received a deposit refund of $0.3m.

*First REIT
- Secured up to $400m in syndicated secured financing facilities from OCBC.
- The facilities consist of 3/4/5-year SGD term loan facilities and a 3-year dual currency revolving credit facility in SGD or USD, for up to $100m each.
- Loans facilities will be used to partially refinance outstanding bank loans, fund property investments and working capital.
- Offers indicative yield of 6.1% and trades at 1.4x P/B.

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