S-REITs - Week 44 - 2024

( YTD: +40.00% | 5D: -1.75%)

 29 Oct - Completion Of Divestment Of Property Known As Capitol Located In Sacramento, California

• The full repayment of approximately US$130.7 million of outstanding loans maturing in 2025, using the net proceeds from the Divestment as well as existing cash, is expected to be completed in November 2024.
  
  
• Following the Divestment, Manulife US REIT’s portfolio consists of 9 office properties in the United States located in Arizona, California, Georgia, New Jersey, Virginia and Washington, D.C.

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( YTD: -4.38% | 5D: -0.83%)

29 Oct - 2Q & 1HFY2024/2025 Financial Results

• Higher Net Property Income driven by contributions from Osaka Data Centre and new leases and renewals
  • 2QFY24/25 Net Property Income: S$134.5 million (+4.6% y-o-y)
  • 2QFY24/25 Distribution to Unitholders: S$95.8 million (+1.9% y-o-y)
  • 2QFY24/25 DPU: 3.37 cents (+1.5% y-o-y)
    
    
• Robust operational performance
  • Average Overall Portfolio occupancy increased q-o-q from 91.9% to 92.9% due to full quarter effect of the lease commencement of Vanderbilt University Medical Center at 402 Franklin Road, Brentwood
  • Weighted average rental revision rate of 10.7% across all property segments in Singapore
    
    
• Completed the acquisition of a freehold property with redevelopment potential in Tokyo, Japan for JPY14.5 billion on 29 Oct 2024
  
  
• Retained approximately S$16.6 million from the distribution reinvestment plan (“DRP”) for 1QFY24/25 distribution

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( YTD: +35.29% | 5D: +0%)
Halt Dividend since 20 Mar 2023

29 Oct - 3Q 2024 Business Updates

• Rental Revenue (SGD): -4.7% vs 3Q23 
• Gross Revenue (SGD): -3.6% vs 3Q23
• Net Property Income (SGD): -6.5% vs 3Q23
  
  • The YoY decline in SGD terms was mainly due to 5.0% depreciation of IDR against SGD.
  • In IDR terms, topline growth largely on recovering operating performance through active asset management, active rental renewal and securing of new leases

Debt Maturity Profile

• Gearing Ratio: 44.97%
• WAMD: 6.75 years
• All-in Cost (ex perpetual): 9.09%

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( YTD: -18.82% | 5D: -1.95%)

30 Oct - 3Q 2024 Business Updates

• Key Highlights
  
  • Lower occupancy and rents from Logistics and Business Park portfolios
    
  • Absence of contributions from CapitaMall Shuangjing and CapitaMall Qibao, offset by improved performance from AEI malls
  • On a comparable 9-mall portfolio basis, gross revenue for retail increase 1.6% YoY
  • Lower effective occupancies and rentals, absence of one-off property tax incentives
    • Mitigated by improvements in AEI malls. Top 5 malls1 (82.0% of 9M 2024 retail NPI) grew 4.6% YoY
  • On a comparable 9-mall portfolio basis, NPI for retail increase 2.9% YoY
    
    
• Operations Highlights
  • Portfolio Occupancy: 91.4%
  • Shopper Traffic: +10.1%
  • Tenant Sales: +2.4% (9M YoY)
    
    
• Capital management
  • Cost of Debt: 3.55%
  • Fixed Interest Rate: 76%
  • Sustainability Loans: 38%

For further information, please click here

( YTD: -10.94% | 5D: +0%)

 30 Oct - 3Q2024 Interim Business Update

Financial Updates

• Gross Revenue: S$272.5m (-6.3% y-o-y)
• Net Property Income: S$192.7m (-6.5% y-o-y)
• NAV per Unit: 29.6cents

Portfolio Updates

• Positive Rental Reversion of 11% (YTD 3Q2023: +12%)
• Occupancy Rate: 91.3%
• Divestment of 81 Tuas Bay Drive at 16.7% premium to valuation
• Total Acquisitions value of S$772.6m 
  • (i) ESR Yatomi Kisosaki Distribution Centre
  • (ii) 51% interest in 20 Tuas South Avenue 14

Capital Management

• Gearing: 36% as at 30 Sept 2024
• Interest Rate Exposure with 75.4% Hedged
• Cost of Debt: 3.96% per annum

For further information, please click here

( YTD: -8.59% | 5D: -1.63%)

30 Oct - Business Updates For The Third Quarter Ended 30 September 2024

• 3Q 2024 gross profit rose 8% year-on-year (y-o-y)
  
  
• Portfolio reconstitution initiatives yielded positive results as acquisitions, completed asset enhancement initiatives (AEIs) and interest savings from the repayment of higher-interest debts with divestment proceeds mitigated the impact of income lost through divestments and ongoing AEI
  
  
• On a same-store basis, excluding acquisitions and divestments between 3Q 2023 and 3Q 2024, gross profit was 2% higher y-o-y due to stronger operating performance
  
  
• Master leases
  • Gross profit rose 4% y-o-y in 3Q 2024 due to higher variable rent primarily in Japan and South Korea, partially offset by 5 divestments
    
    
• Management contracts with minimum guaranteed income (MCMGI)
  • Gross profit increased 47% y-o-y in 3Q 2024 due to contribution from 2 acquisitions, stronger performance of The Robertson House by The Crest Collection post-AEI and robust performance of the Europe properties at above pre-Covid levels
    
    
• Longer-stay properties (rental housing & student accommodation)
  • Gross profit increased 11% y-o-y in 3Q 2024 mainly due to higher contribution from properties which were acquired in 2023 and 2024; occupancy remained stable at >90% and rent growth of the student accommodation portfolio was c.4.5% y-o-y2

For further information, please click here

( YTD: +1.89% | 5D: +1.89%)

30 Oct - Business Update For 9M 2024

• Rental and Other Income declined 5.3% year-on-year to S$77.0 million in 9M 2024 and Net Property Other Income fell 6.0% year-on-year to S$74.4 million over the same period
  
  
• Rental and Other Income and Net Property and Other Income in 9M 2024 were impacted by the depreciation of Japanese Yen and Indonesian Rupiah against Singapore Dollar
  
  
• The currency impact was partly offset by higher rental income in local currency terms from Indonesia and Singapore properties
  
  
• Distributable Amount declined by 3.4% year-on-year to S$37.0 million in 9M 2024
  
  
• DPU has consequently dipped from 1.86 Singapore cent in 9M 2023 to 1.78 Singapore cent in 9M 2024 mainly due to the depreciation of Japanese Yen
  
  
• Indonesian Rupiah against Singapore Dollar, as well as the enlarged unit base resulting from the issuance of units for payment of management fee to the Manager
  
  
• As at 30 September 2024, the proportion of debt on fixed rates or hedged is 86.0%
  
  
• Gearing ratio remained healthy at 39.3% with an interest coverage ratio of 3.9 times
  
  
• Approximately 30% of interest rate hedges will roll off by year end and the fixed rates hedging ratio will fall to under 60%
  
  
• Cost of debt of 5.0% has remained the same in 9M 2024 as compared to 9M 2023 and no refinancing requirements until May 2026
  
  
• Net asset value per unit as at 30 September 2024 was 29.16 SGD cents as compared to 30.18 SGD cents as at 31 December 2023 mainly due to currency translation; this represents a price-to book ratio of 0.96 times.

For further information, please click here

( YTD: -3.81% | 5D: -2.88%)

28 Oct - Divestment Of Office Strata Lots In The Wisma Atria Property

• Divested to an unrelated third party approximately 7,653 square feet of net lettable area (“NLA”) located on Level 12 of the office tower in the Wisma Atria Property (the “Property”) for a cash consideration of approximately S$16.1 million (or S$2,100 per square foot), a 22.2% premium to its latest valuation

For further information, please click here

29 Oct - 1Q FY 2024/25 Business Updates

Business Updates Key Highlights

• Gross Revenue: S$48m (+1.9% y-o-y)
• Net Property Income: S$37.9m (+1.4% y-oy)
• Committed Portfolio Occupancy: 97.6%
• Portfolio WALE (by NLA): 7.6 years
• Gearing: 37.2%
• Fixed/Hedged Debt: 81%
  
  
• Revenue was up mainly due to higher contributions from the Singapore and Perth Properties, as well as appreciation of RM against S$
• NPI rose in line with higher revenue, partially offset by higher operating expenses mainly for Myer Centre Adelaide

For further information, please click here

( YTD: -6.02% | 5D: +0%)

 30 Oct - Business Updates 3Q 2024

• Gross revenue for 3Q 2024 decreased by 4.8% year-on-year to S$28.7 million mainly due to the absence of one-off revenue received by the hotels contracted for isolation purpose in the prior year.
  
  
• Excluding the effect of the one-off revenue in 3Q 2023, the Hotels segment would have recorded a growth, and gross revenue would have increased 3.9% year-on-year.
  
  
• Both the Serviced Residences and Commercial Premises segments showed growth with the latter benefiting from higher retail occupancies and rental rates.
  
  
• Net Property Income decreased 6.8% year-on-year, primarily due to lower revenue and higher property taxes.

Capital Management

• Aggregate Leverage: 30.8%
• Proportion of Fixed Rate: 40.1%
• WADM: 3.1years
• Average Cost of Debt: 4.1%
• Interest Coverage Ratio: 2.9x

For further information, please click here

( YTD: -18.47% | 5D: -4.74%)

 29 Oct - 3Q 2024 Operational Update

• As at 30 September 2024, CDLHT has a healthy balance sheet with a gearing of 38.8%, cash reserves of about S$68.3 million and S$210.4 million of committed revolving credit facilities available to fund working capital needs.
  
  
• The pro forma gearing (post acquisition) as at 30 September 2024 assuming Hotel Indigo Exeter is completed is 39.5%.
  
  
• During the reporting quarter, existing term loan facilities of €35.6 million and S$70.0 million were successfully refinanced as sustainability-linked term loans for a tenor of 5 years, increasing the total sustainability-linked facilities to S$477.2 million.
  
  
• Re-financing for the remainder of the maturing loans in 4Q 2024 has commenced and is expected to be completed before the end of the year.
  
  
• With access to short-term uncommitted bridge loan facilities of S$400.0 million13 , CDLHT will continue to pursue suitable acquisitions to augment and diversify its income streams, while working closely with its lessees and operators to execute strategic asset enhancement opportunities to bolster the portfolio's competitiveness.
  
  
• CDLHT remains steadfast in its commitment to driving sustainable growth and delivering value to stakeholders.

For further information, please click here