Yahoo Finance 
Stocks In Focus SG (CapitaMall Trust, CapitaRetail China Trust, Wee Hur Hldgs) – 24/10/13
CMT 3Q13 Performance On Track
Although CapitaMall Trust’s (CMT) gross revenue for 3Q13 came short of 2Q13 at $182.4 million, a decrease of approximately 0.2 percent from $182.8 million, it has increased 9.1 percent on a year-on-year basis. Net property income (NPI) in 3Q13 increased 0.7 percent from $125.6 million to $126.5 million as compared to 2Q13, or 12.9 percent versus 3Q12. The increase in NPI is contributed from the completion of asset enhancement initiatives (AEI) for Atrium@Orchard, Bugis+ and Jcube. On the other hand, previous and ongoing AEI works in IMM Building and Bugis Junction respectively, have offset NPI for the year-to-date. Financing costs for 3Q13 are reduced by $8.9 million from $38.1 million to $29.2 million, due to the refinancing of a term loan at a lower interest rate and the redemption of its issued retail and convertible bonds. Consequently, distribution per unit on a quarter-on-quarter basis (2Q13 and 3Q13) has gone up to $0.0256 from $0.0253. Net asset value per unit at 30 September 2013 is recorded at $1.68 after deducting distributable income to unitholders.
Significance: With the completion of AEIs for Bugis Junction going on track for 4Q13 and the target opening of Westgate by the end of 2013, CMT possess strong catalysts to continue propelling NPI. As a result of its portfolio’s strong occupancy rate of 99.5 percent, coupled with stronger sales performance for most of its tenants, CMT is expected to continue performing well.
CRCT To Raise $59m For Portfolio Expansion
CapitaRetail China Trust (CRCT) launched an equity fund raising by issuing approximately 45.4 million new units at $1.30 per unit through a non-renounceable preferential offering to its existing unitholders and targets to raise gross proceeds of about $59 million. The issue price represents a discount of about 7.5 percent to the volume weighted average price of $1.4049 for trades in CRCT units throughout 23 October 2013. The preferential offering is made on the basis of six new units for every 100 existing units held. Notably, CapitaMalls Asia has committed to take up its pro-rata entitlement, and to undertake to apply for excess units to the extent that CapitaMall Trust does not accept. Just yesterday, CRCT announced a 2.1 percent increase in 3Q13 distributable income to $17.1 million due to higher revenue growth contributed by better tenants’ sales and higher rental reversions.
Significance: The net proceeds raised will be used to finance investments for the growth of CRCT’s portfolio of quality income-producing malls with long-term potential, including financing part of its proposed acquisition of Grand Canyon Mall in Beijing, priced at around Rmb1.8 billion ($371.8 million) to continue participating in China’s growing consumption.
Wee Hur Makes Foray Into Workers’ Dormitory Business
Wee Hur Holdings’ subsidiary, Wee Hur Dormitory, has entered into a 60:20:10:10 joint venture with TS Management Services, WM Dormitory and Lucrum Dormitory. The joint venture company, Active System Engineering, has recently been awarded by JTC Corporation to build and operate a 16,800-bed workers’ dormitory at Tuas South Avenue 1 to cater to foreign workers in the marine, manufacturing and process industries. JTC has granted an initial three years’ lease of the land for the building and operation of a dormitory at a monthly rental of approximately $1.16 million, renewable for a further three years. Designed as a self-contained dormitory with common toilets, centralised kitchen, laundry area and common interacting area, it will also be equipped with commercial amenities such as canteen and retail shops. The construction is expected to complete in 2H14.
Significance: Given the government’s emphasis on proper management of accommodation for foreign workers, Wee Hur is cautiously optimistic of achieving high occupancy. The large capacity of the dormitory would also open a sizeable new recurring revenue stream.
More From Shares Investment:
