CMT’s DPU Dips 2.5% In 4Q11, Rises 1.4% For Full Year
CapitaMall Trust (CMT) is delivering a distribution per unit (DPU) of $0.023 for the fourth quarter ended 31 December, represents a 2.5% year-on-year dip. Gross revenue was 4.3% higher at $157.9 million while net property income (NPI) slid 2.6% to $98.8 million, leading distributable income to come in little changed at $75.5 million. For the full year, gross revenue climbed up 8.5% to $630.6 million while NPI increased 4.8% to $418.2 million. Distributable income was 2.3% higher at $301.6 million, bringing the year’s DPU to $0.0937 as compared to $0.0924 in FY10. The better performance was boosted by acquisitions of Clarke Quay and Iluma, as well as rental increases from new leases and renewal of existing leases. On the proposed $0.023 DPU, an advanced distribution of $0.0102 per unit was made on 6 January, leaving unitholders to receive $0.0128 per unit for the period 10 November to 31 December.
Significance: As at end-11, CMT has maintained its overall occupancy rate at a high of 94.8%. Assets enhancement initiatives are ongoing for several malls, which upon completion, will lead to rental upside to be progressively realised over the next two years.
Delong Set Eyes On 80%-Stake In Aoyu Steel
Delong, a chinese steel manufacturer, has set eyes to acquire an 80%-stake in Laiyuan County Aoyu Steel for Rmb264 million ($53.6 million). Similarly based in China, the target is a maker of pig iron and steel billets, with an annual production capacity of 1.2 million tonnes. It has a 51% interest in Laiyun County Butai Mining, which is engaged in the production and sale of limestone. In additon, an equity acquisition agreement had been entered and will see Delong acquiring the remaining 20% within three years.
Significnace: Delong considers the target an established steel producer with a strong customer base and will boost the its annual steel production capacity by 46.2% to 3.8 million tonnes. Through the deal, the group is likely to achieve production efficiencies as well as command a larger market share in the highly competitive China steel industry.
Keppel, SembMarine Deny Bids For STX OSV
Keppel Corporation and Sembcorp Marine sought to put an end to talks that they are bidding for a stake in STX OSV Holdings. This came after news that the latter’s parent STX Corporation is looking to dispose a 50.75% interest at a valuation of over US$600 million. In separate announcements to the Singapore Exchange, both companies clarified that they are currently not making any bid. Keppel reiterated that ‘it will explore various investments and acquisitions proposals’ and would make announcement when warrant, while SembMarine said it ‘evaluates investment opportunities from time to time and will make the necessary announcements when appropriate’.
Significance: Though STX OSV noted that there is no certainty that the disposal of shares would take place, rumours are rife that a bidding war is brewing in the horizon. Notably, its shares had risen nearly 7% to close at $1.39 on 18 January from the closing price of $1.30 on 16 January.