SingLand: 1Q11 results generally in-line.
Net profit grew 2% to $48.8m, as revenue for the office landlord climbed 29% to $138m from a restated $108m.
Similar to its property peers, SingLand adopted INT FRS 115 which resulted in 1Q10 revenue and net profit being reduced by $8.6m and $0.5m rptvely…
SingLand's improved topline came from stronger sales from trading properties. It more than doubled to $48.4m from $19.3m, due to the additional units sold and higher % of completion at The Trizon residential project.
Pan Pacific Spore hotel also contributed to the better revenue results, with higher room and occupancy rates translating to a 12% gain in revenue to $28.5m...
Affecting bottomline was the thinner share of contributions from associated companies from $11m to $8.2m, due to the absence of contributions from One Amber residence project (completed in Apr ’10).
Mgt expects the Spore office rental market improve amidst healthy take-up rates. Also believes the retail leasing market is likely to remain stable especially in the suburban malls, underpinned by good catchment demand…
Stock trades at 0.7x P/B. CIMB believes this appears to price in all its office assets at near-distressed levels, including Singapore Land Tower at $1.5k psf, SGX Centre at $1.3k psf, Clifford Centre at $1.2k psf and Gateway at S$0.9k psf. Reiterates Outperform with $10.22 TP.
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