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Stocks In Focus SG (AIMSAMP REIT, Mapletree Industrial Trust, Yoma Strategic Hldgs) – 23/10/13
AIMSAMP REIT 2Q14 Performance Remains Strong And Stable
In rental revenue, AIMS AMP Capital Industrial REIT (AIMSAMP REIT) reported a 9.8 percent increase to $26.9 million for the quarter ended 30 September 2013, from $24.5 million in 1Q14, with a 24.8 percent improvement on a year-on-year basis. The revenue increase was primarily due to additional income generated from Phase Two of 20 Gul Way and a higher occupancy rate for a development at 56 Serangoon North Avenue 4. Net property income came in at $18.2 million, up 15.8 percent from $15.7 million as compared to 1Q14, and increased 23.6 percent compared to 2Q13. Subsequently, distribution per unit increased to $0.0275 from $0.025, a 10 percent rise as compared to both 1Q14 and 2Q13. This translates to an annualised distribution yield of 7.1 percent based on the closing price of $1.485 on 22 October 2013. As of 30 September 2013, the portfolio of AIMSAMP REIT is valued at $1.09 billion, an increase of 4.3 percent compared to the $1.045 billion valuation recorded on 31 March 2013, pushing up its net asset value per unit to $1.52, up from $1.476 over the same period last year.
Significance: As AIMSAMP REIT has a relatively low aggregate leverage of 25.2 percent, compared to a limit of 35 percent for Singapore REITS, with no debts to be refinanced until October 2015, its capital structure remains fairly stable and also gives room for potential acquisitions, as well as redevelopments via an intensive asset management to further unlock portfolio value.
MIT’s 1H14 Revenue Jumps 9.9%; Distributable Income Rises 9.4%
Mapletree Industrial Trust (MIT) reported a 9.9 percent increase in gross revenue to $148.5 million from $135.1 million while net property income jumped 10 percent to $106.5 million from $96.8 million for the half year period ended 30 September 2013. The improved performance on a year-on-year basis was due to the higher rental rates secured for leases across all the property segments and higher occupancies in flatted factories and stack-up/ramp-up buildings. 1H14 distributable income is $81.3 million, up 9.4 percent, while distribution per unit is 4.9 cents, up 7.7 percent. For the quarter, gross revenue improved 7.6 percent to $73.4 million, while distributable income increased 9.7 percent to $41.1 million. Notably, MIT’s portfolio showed resilience despite the exit of a major tenant in 2Q14 leading average portfolio passing rent to drop marginally and portfolio occupancy to decline to 93.9 percent.
Significance: MIT has refinanced all borrowings due in FY14, extending its weighted average tenor of debt from 2.5 years to 3.2 years, thereby strengthening its balance sheet and financial flexibility to continue pursuing development and acquisition opportunities to grow its portfolio.
Yoma To Run Volkswagen’s First Service Centre In Myanmar
Yoma Strategic Holdings announced that its 70-percent-held subsidiary, German Car Industries Company, has entered into a service partner agreement with Volkswagen Aktiengesellschaft. Under the deal, Yoma will operate Volkswagen’s first service centre in Yangon, scheduled to commence operations in October 2013. The service centre will provide maintenance and repair services for Volkswagen branded vehicles, including the sale of genuine vehicle parts to existing vehicle owners. The partnership underscores Yoma’s strategy to bolster its automotive operations in Myanmar and strengthens its position in the country’s burgeoning automotive industry.
Significance: Following the deregulation of the importation of cars in Myanmar, Yoma’s partnership with Volkswagen, albeit non-exclusive, provides a head start for a potential longer term collaboration with the latter and would enjoy a first mover advantage in Myanmar.
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