Suntec REIT

tfwee · Veteran

RE: Suntec REIT

KK · Guru

Suntec REIT - CitiGroup

KK · Guru

Suntec REIT - OCBC

tfwee · Veteran

RE: Suntec REIT

KK · Guru

Suntec REIT : Q106 Results

tfwee · Veteran

RE: Suntec REIT

tfwee · Veteran

Extracted from UOB Kay Hian dated 10 Nov 2005

Suntec REIT is one of our valuation plays. Although it has not been as active as some of the other REITs in acquisitions or as aggressive as CMT in asset enhancement, this stock has been punished much more than is fair. With the Marina Integrated Resort coming up in 2009 and the Marina Bay area livening up, Suntec REIT should see better days ahead.

Recent acquisition-related fears overplayed. Suntec REIT has recently came under undue severe pressure over its acquisition policies and the use of deferred units in the controversial acquisition of 11 properties from City Development (CDL). The abortion of the CDL transaction is positive for the company. It is unlikely that Suntec REIT to face any legal issues with regard to the CDL transaction.

Retail income is likely to improve. Suntec City retail mall is likely to see significant improvements in its rental income. Rental income for the mall is only about S$8+ psf pm but we expect management to be able to take this to S$12-13 psf pm heading into 2009 as the Marina area becomes more lively with the development of the integrated resort. Suntec City Mall can also undergo extensive asset enhancement in terms of tenant remix and store re-sizing and management has already taken some steps in that direction.

Acquisitions may be difficult but not impossible. Given that Suntec REIT's mandate is to look for properties within Singapore and that it does not have a developer who can provide a ready pipeline of assets, acquisitions may be difficult to come by. However, it is also not impossible. Recently, it acquired Park Mall from WingTai and will complete the acquisition of Chijmes by end-05. We assume Suntec REIT's portfolio will grow to S$3.6b by 2010 from the current S$2.3b, by making acquisitions at an average rate of S$250m per year.

BUY - Target price: S$1.32. We initiate coverage with a BUY, given that the stock has factored in a significant amount of downside with regard to negative investor sentiment. Based on our dividend discount model, our fair value is S$1.32. Our valuation assumes the REIT will grow to S$3.6b by 2010, acquiring properties at NPI yields of 4.5% on average. In terms of yields, we expect Suntec REIT to deliver 5.9% and 6.7% in FY06 and FY07 respectively, which are 286bp and 321bp over our FY06 and FY07 10-year government bond assumptions. Chief risks to our valuation are sharply higher interest rates, failure to execute acquisitions smoothly and legal implications from the CDL deal.

tfwee · Veteran

Extracted From UOB Kay Hian by Pratik Burman Ray

TALKING POINT

Will overseas REITs steal the show from the S-REITs?

With overseas REITs in Hong Kong and Malaysia, the debate has been that overseas REITs will steal the limelight from S-REITs. While it is early days to call the verdict, select S-REITs are likely to come out tops in the regional REIT landscape.

Look beyond that headline yield. One of the key attractions of overseas REITs has been the yield at IPO for some of these REITs. For instance, Link REIT at IPO is offering about 6% yield and Guangzhou REIT is promising 7%+. However, it is important to look beyond the headline yield. If the yield is not sustainable, or cannot be improved upon with asset enhancements or yield accretive acquisitions, a higher yielding REIT need not be better. Quality of properties determine the sustainabiltity of yield and is often more important.

Besides the higher headline yield partially compensates for the higher risk-free rate. The risk free rates of HK and Malaysia are higher than that of Singapore and hence yields offered in HK and Malaysia should be higher. The higher headline yield is a partial compensation for the higher risk free rate. When choosing the risk free rate one should use the risk free rate of the country where the assets are located.

Premiums over risk free rate for REITs should depend on infrastructure and country risk. In addition to quality of properties and risk free rates, it is also important to compensate for the quality of infrastructure of a country and the associated country risk. In this aspect, we rate Singapore and HK closely while Malaysia is behind both these countries Hence Malaysian REITs need to compensate this by offering higher yields.

Select S-REITs still likely to come out tops. Singapore with a lower risk free rate, lower inflation rate, and quality infrastructure, is likely to compensate for the lower headline yields. Select S-REITs with quality properties and proven execution are likely to come out tops in the regional REIT landscape.

Our top picks among the S-REITs are CapitaMall Trust and Suntec REIT.

-- Edited by tfwee at 13:05, 2005-11-21

KK · Guru

Thursday November 17, 5:46 PM Capital Group Ups Stake In Singapore's Suntec REIT

SINGAPORE (Dow Jones)--U.S.-based Capital Group Companies Inc. (CAP.XX) has further increased its stake in Suntec Real Estate Investment Trust (T82U.SG) to become the Singapore REIT's largest shareholder, Suntec REIT said Thursday.

Capital Group Tuesday purchased around 13.9 million Suntec REIT units from the open market, raising its stake in the Singapore-listed REIT to 6.1408% from 5.0682% previously. The purchase price wasn't given.

Capital Group became a substantial shareholder in Suntec REIT only last week when it raised its stake above the 5% threshold.

Suntec REIT's main assets are the mall and part of the office space at Suntec City, a giant commercial development in the Marina Bay area that has been earmarked as Singapore's new downtown.

Suntec REIT closed unchanged at S$1.06 Thursday.

-- Edited by KK at 23:09, 2005-11-17

KK · Guru

Exracts fm SGX dated 14-Nov-05,

CAPITAL GROUP INCREASES INVESTMENT IN SUNTEC REIT

Shareholding up from 4.9669% to 5.0682%
Purchase of 1,311,000 shares in the open market on 10 November
Increase in number of shares held from 64,221,000 to 65,532,000

Singapore, 14 November 2005 – ARA Trust Management (Suntec) Limited (“ARA Suntec”) has announced that The Capital Group Companies, Inc. (“CGC”) has increased its investment in Suntec REIT to 5.0682%, up from 4.9669%. CGC purchased 1,311,000 shares in the open market on Thursday 10 November 2005, making the organisation a substantial shareholder of Suntec REIT.

CGC is one of the world’s most experienced and successful investment management organisations. Through a network of 21 offices worldwide, they manage investments for millions of individuals and thousands of corporations and institutions.

Commenting Mr Yeo See Kiat, ARA Suntec CEO, “We are very encouraged by this development. It is certainly a privilege to have CGC on board as a substantial shareholder. We will continue to focus on growing the distribution income and value of Suntec REIT to all our shareholders.”

tfwee · Veteran

Extracted from UOBKH dated 31 Oct 05

SUNTEC REIT (SUN SP: S$1.04) BUY (unchanged)

FY06 expected to be better

Suntec REIT reported a YoY dip of 1.8% in gross revenue to S$34.2m for 4Q05. The fall in revenue is attributed to the non-renewal of leases from office tenants and negative rental reversions from office tenants. DPU rise 3% QoQ to 1.61cents in 4Q05. The acquisition of Parkmall is completed. Suntec has a rating of 'Baa1' from Moody's Investors Service and is able to capitalise on the latest guideline by MAS allowing a cap of 60% leverage. We project DPU of 7 cents for FY06 and recommend BUY.

(I) Results

· Net income after tax fell 2.3% YoY to S$17.5m in 4Q05 on the back of a 1.8% YoY drop in gross revenue to S$34.2m. The fall in revenue was mainly due to the non-renewal of leases by office tenants (such as Microsoft Singapore Pte Ltd and Fuji Xerox Singapore Pte Ltd); and negative rental reversions from office tenants, both of which are expected and in line with Forecast disclosed in Prospectus.

· The DPU is 1.61 cents for 4Q05 and 5.02 cents for the period 1 Nov 04 to 30 Sept 05. The annualised DPU is 6.0 cents, which is lower than our forecast of 6.3 cents.

· The DPU of 1.605 cents will be paid on 29 Nov 05.

· The office occupancy improved to 90.4% as at end Sept 05 with average office rental of $4.50 psf.

(II) Comparison with other REITs

· Suntec REIT gives an annualised yield of 6.9% which is one of the highest among the Singapore REITs. Its NAV of S$1.06 at end Sept is not far from its share price.

(III) Updates and Outlook

· MAS has recently revised the guidelines for property related fund to cap the aggregate leverage limit at 60% up from 35%, provided that the REIT obtains and discloses the credit rating from a major rating agency. Suntec has obtained a credit rating of 'Baa1' from Moody's Investors Service and can continue with its expansion plans. Suntec has previously called off deal with City Developments to buy 11 properties as the regulatory approval had not been obtained in time for shareholders' meetings to be called.

· The acquisition of Park Mall for S$230m from Wing Tai was completed on 28 Oct 05. S$225.9m was drawn down from Citibank N.A towards the purchase leading to 44.5% aggregate leverage.

· Suntec has just opened the Happy Kidz zone in Sept 05 with Toy R Us as the anchor tenant. This zone is expected to achieve target of S$3m for FY06.

· Asset enhancement is in progress as plans for a Digital World and a Youth Zone is in the pipeline, with completion expected to be in Oct 2006 and Feb 2007 respectively.

· Suntec REIT is acquiring Chijmes for S$128m, which has a property yield of 5%. This will further diversify Suntec REIT's portfolio.

(IV) Recommendation

· Management is confident of delivering the projected DPU of 6.13 for FY06. We project a DPU of 7.0 cents and a yield of 6.8% for FY06. We maintain BUY as it offers a higher yield compared to the other REITs and the price is at a discount to its asset value.

KK · Guru

Suntec REIT - CitiGroup

tfwee · Veteran

RE: Suntec REIT

KK · Guru

Suntec REIT - Kim Eng

tfwee · Veteran

RE: Suntec REIT

KK · Guru

Suntec REIT - DBSVickers

KK · Guru

Suntec REIT - OCBC

KK · Guru

Suntec REIT - Park Mall

tfwee · Veteran

RE: Suntec REIT

tfwee · Veteran

I think CHJIMES and Park Mall are a good buy for Suntec as currently both place are near the SMU. Park Mall can be converted into a place for student and CHJIMES can be converted into a place to cater for professional and professor for SMU. This is the first time that Singapore is having a University in the central area of Singapore. If you take a look at city that have university in town area like Syndey and Melbourne, the surrounding area is full of activities due to the the large number of students and staff. As what KK has mentioned, the two places are consider "ulu", there will be alot of room for improvement to improve the current yield. Of course, it will depend on ARA's plan.

-- Edited by tfwee at 23:35, 2005-10-30

KK · Guru

ahkian wrote:

Chjimes would be great but I am not so sure about Park Mall, the place looks very quiet to me.Maybe after SMU is fully operational, things may change. Also wonder if there will be differred payments?

No deferred payment, both acquisitions are fully funded by debts.
The attraction of acquiring an 'ulu' asset would be that they hv a lot more room to improve on it to improve the yields. If they successfully re-do the place and bring in the crowds, they'd be able to increase the rental subsequently to improve on the yield. A good eg. is what CMT had done for IMM. Previously more of a place for furnitures, lights, bridal studios,... and very few eating place or other shops. Now, very different and hv a good mix of shops to attract both the family and office crowds plus many eating joints.

ahkian · Member

Chjimes would be great but I am not so sure about Park Mall, the place looks very quiet to me.
Maybe after SMU is fully operational, things may change.

Also wonder if there will be differred payments?

tfwee · Veteran

Media release
For immediate release
30 October 2005

SUNTEC REIT TO ACQUIRE HISTORICAL LANDMARK CHIJMES
Key highlights:
- Proposes to acquire Chijmes for S$128 million at a net property yield of 5.0%
- Acquisition would further strengthen Suntec REIT’s asset diversification strategy

Singapore, 30 October 2005 – ARA Trust Management (Suntec) Limited (the “Manager”), the manager of Suntec Real Estate Investment Trust (“Suntec REIT”) announced that it has on 29 October 2005 entered into a conditional sale and purchase agreement with Chijmes Investment Pte Ltd for the proposed acquisition of historical landmark Chijmes at a purchase price of S$128 million.

This acquisition, which values Chijmes at an attractive property yield of 5.0%, is expected to be yield accretive to Suntec REIT’s unitholders. The transaction is targeted for completion by 15 December 2005 and the purchase price of S$128 million, which is also the appraised value by Knight Frank Pte Ltd, will be satisfied wholly in cash.

Chijmes is an award winning gazetted national monument and recognised by UNESCO as an Asia Pacific Culture Heritage Conservation Building. It is the premier retail establishment for exciting food and beverage and entertainment offerings in the city and is strategically located at the crossroads of Victoria Street, North Bridge Road and Bras Basah Road in the city centre and within Singapore’s arts, culture, learning and entertainment hub. The newly opened Singapore Management University, the National Library, Nanyang Academy of Fine Arts and other institutions of higher learning will further enlarge Chijmes’s market catchment.

Commenting on the acquisition, Mr Yeo See Kiat, CEO of the Manager, said “We are very pleased to be able to acquire a prime retail establishment and national landmark. We see strong synergy between Suntec City, Park Mall and this charming property. This acquisition will further diversify and enlarge Suntec REIT’s retail tenant base to 1.1 mil square feet

tfwee · Veteran

DRAW DOWN OF S$225.9 MILLION TERM LOAN FOR ACQUISITION OF PARK MALL
The Board of Directors of ARA Trust Management (Suntec) Limited (the “Manager”), as the manager of Suntec REIT, wishes to announce that it has today drawn down S$225.9 million from its term loan granted by Citibank N.A., Singapore branch. The loan has been applied towards the acquisition of Park Mall for a purchase consideration of S$230.0 million.

Following the above draw down, Suntec REIT’s total borrowings and aggregate leverage (inclusive of the arrangement for deferred units at Suntec REIT’s initial public offering) are approximately 36.3% and 44.5% respectively of its deposited property. Pursuant to the revised property funds guidelines issued by the Monetary Authority of Singapore on 20 October 2005, Suntec REIT is required to obtain a credit rating from a major credit agency. In this regard, Suntec REIT has obtained a Baa1 corporate family rating from Moody’s.

tfwee · Veteran

Suntec REIT July-Sep Distribution S$20.8M

SINGAPORE (Dow Jones)--Suntec Real Estate Investment Trust (T82U.SG), a Singapore property investor, said Friday it has S$20.8 million available for distribution to unitholders for its fourth quarter.

The distribution for the three months ended Sept. 30 is equivalent to 1.605 Singapore cents a unit, which is 7.4% higher than forecast, the REIT said in a statement to the Singapore Exchange.

October 28, 2005 05:48 ET

Singapore Suntec REIT July-Sep Earnings Table < T82U.SG

Suntec Real Estate Investment Trust (T82U.SG) - Singapore

4Q ended Sept. 30:

Figures in Singapore dollars

2005 Forecast*
.Revenue S$34,155,000 S$33,118,000
Net Property Income 24,763,000 24,429,000
Distributable Income 20,763,000 19,318,000
Distribution Per Unit 1.605 cents 1.50 cents
Annualized Yield 5.5%* 5.2%

*The trust listed in December 2004.

*Based on Sept. 30 closing share price of S$1.15.

Results are based on local accounting standards.

tfwee · Veteran

PRESS RELEASE: Moody's Rates Suntec REIT Baa1

The following is a press release from Moody's Investors Service:

Hong Kong, October 28, 2005 -- Moody's Investors Service has assigned a corporate family rating of Baa1 to the Suntec Real Estate Investment Trust ("Suntec"). The Baa1 corporate family rating reflects Moody's opinion on Suntec's ability to honor its financial obligations as if it had a single class of debt and a single consolidated legal entity structure. The rating outlook is stable. This is the first time Moody's has assigned a rating to Suntec.

The Baa1 rating reflects Suntec's credit strengths, which include 1) stable cash flow underscored by Suntec City's good location and strong brand franchise; 2) diversified tenant base across many industry sectors; (3) expectation of improving revenue and returns from the asset, resulting from continued recovery in the office and retail property markets, asset enhancements and better property management; and (4) conservative capital structure and financial policies.

At the same time, the rating incorporates credit risks associated with 1) single asset and geographic concentration; 2) execution risks for ongoing asset enhancements to grow revenues and returns; 3) acquisition-focused growth strategy will increase leverage; and 4) limited financial flexibility as all assets are pledged against existing financing.

Suntec's quality retail and office assets, with a total value of SGD2.3 billion, support stable cash flow generation. Retail and office rental income accounted for about 64.0% and 36.0% of Suntec's total revenues as of September 2005.

Its retail assets have demonstrated a high degree of resilience with average occupancy levels around 90% over the past 4 years, which included in 2003, one of Singapore's deepest economic and retail downturns. As the largest retail mall in Singapore, Suntec attracts over 2 million visitors and shoppers per month. The adjoining Suntec International Convention and Exhibition Centre and nearby hotels are also contributors to traffic flow.

In the past 2-3 years, the performance of its office portfolio has been affected by weak demand. The REIT Manager managed to improve office occupancy to 90% with a 4.5% quarter-on-quarter rental increase for new leases for the quarter ending June 2005. This outcome has been achieved by an improving economy and the REIT Manager's pro-active tenant and property management policy to meet the office space requirements of existing tenants and sourcing new tenants.

As a strata-titled property, Suntec does not manage the office towers or maintain the common areas. Maintenance and management are conducted by the Management Corporation of Suntec City, and Suntec pays a maintenance levy, like other office strata-title holders. Moody's believes the strata-title complicates the management of Suntec City, but this risk is mitigated by Suntec having majority voting rights over the Management Corporation of Suntec City. In addition, there is the collective interest of all parties to ensure Suntec City is maintained at a high standard.

Suntec has a diversified tenant portfolio spread across many industries. At September 2005, its top 10 retail and office tenants -- in terms of gross rent -- accounted for 20.0% and 19.6% of total revenue respectively. Its retail mall has a good tenant mix with retail tenant concentration in any one industry less than 29%. Likewise, industry concentration of office tenants is no greater than 33% in any one industry.

Furthermore, the Suntec lease portfolio has an evenly spread expiry profile over the next 4 years. The retail and office leased areas expiring in 2006 are 12.6% and 8.9% of the retail and office net lettable area respectively.

The Baa1 rating has incorporated Moody's expectation of improving revenue and returns from the asset, supported by the REIT Manager's asset enhancement plan and favorable industry trends. The asset enhancement plans to reposition over 138,000 sq. ft. of retail space over a 3-year period. Given the large size of Suntec mall, property enhancements and tenant remerchandising are expected to be executed in phases with careful planning in order to minimize income interruption.

Moody's is aware that the REIT Manager has managed Suntec since December 2004. Whilst this track record is short, it has provided a high level of accountability and transparency. The objective is to improve Suntec's property services to achieve rental revenue growth through high tenant retention, reduction in vacancy periods, and minimum impact from tenant remerchandising on possible rental income interruption.

Moody's believes these targets are aligned with unit-holders, a condition which should ensure better quality and more consistent operating cash flows. While achievement of improved returns and revenues should be seen in the medium term, its first-zone asset enhancement project (Happy Kidz) is already recording sizeable rental rate improvements.

Like most REITs, the REIT Manager's fee structure is linked to both Suntec's net property income and property value. The performance-linked features of its fee structure helps to further align the interests of both the REIT Manager and unit-holders.

Moody's rating has considered the REIT Manager's growth via an acquisition strategy. Suntec's leverage is likely to increase as a result of such strategy. The rating reflects Moody's expectation that the managers will enter into future acquisitions in a prudent manner and that its leverage will not go beyond 45%. Moody's understands that Suntec's investment criteria are focused on yield-accretive income-producing commercial properties in the fast-growing Marina Bay and Civic & Cultural District growth corridors.

The Baa1 rating has taken into account Suntec's announcement to acquire Park Mall from Wing Tai Holdings. Moody's believes this acquisition is a positive addition to the Suntec portfolio, given 1) it will somewhat reduce the concentration risk on Suntec City; 2) it helps generate income and return growth and 3) the consequent increase in asset size will yield economies of scale benefits and enhance the liquidity of the Suntec REIT units, and hence financial flexibility.

Demonstrating an inherent weakness of the REIT structure, Suntec's financial flexibility and liquidity are weak, given its mandatory high dividend payout of at least 90% and thus low retained cash balance. Furthermore, Suntec only has a small committed credit facility SGD50 million. Its financial flexibility is further restricted by the fact that all existing assets are already pledged for its CMBS financing, even though the loan-to-value is at a low level of 30%. Moody's further says that if any of Suntec's senior unsecured obligations were to be rated in future, their ratings would be notched down from the Baa1 corporate family rating to reflect the level of legal subordination.

As of June 2005, Suntec's EBITDA/Interest ratio was above 4.5x, Total Debt/Annualized EBITDA ratio at 8.4x, and leverage at 30%. The Baa1 rating reflects Moody's expectation of weakening EBITDA/Interest and Total Debt/EBITDA ratios resulting from anticipated debt funded acquisitions. Currently, around 70% of Suntec's borrowings are hedged to a fixed interest rate and there is no major debt maturing in the next 2 years.

Upward rating pressure could evolve if Suntec maintains an EBITDA/Interest ratio of above 5x, a Total Debt/EBITDA ratio of below 6x and a Total Debt/Total Assets leverage of below 35% on a sustainable basis. This could be a result of a successful execution of its asset enhancement program, such that it is able to achieve the forecast rental and revenue improvements for the 6 redeveloped zones planned, and 2) Suntec manages to improve EBITDA margins of the portfolio at above 70%.

Conversely, the rating may experience a downward trend if Suntec is not able to improve portfolio diversification or it's EBITDA/Interest coverage falls below 3x, its Total Debt/EBITDA ratio rises above 10x, and its ratio of Total Debt/Total Assets is above 45%. This could be a result of (1) an inability to achieve expected rental and occupancy improvements from its asset enhancement program, (2) materially negative events occur, resulting in a significant downturn in rentals, and/or (3) aggressive debt-funded acquisitions unfold.

Suntec REIT is listed on the Singapore Stock Exchange and one of the leading players in the Singapore REIT market. Suntec REIT's Manager is ARA Trust Management (Suntec) Limited, an indirect subisidiary of Cheung Kong (Holdings) Limited.

KK · Guru

BT, Published October 24, 2005

Clear the air on Suntec Reit-CDL deal

THE Monetary Authority of Singapore (MAS) has finally released its new guidelines for real estate investment trusts (Reits). But will this revive one of the biggest property trust deals in Singapore? Last Thursday, MAS said that deferred payments can be used by Reit managers to fund property acquisitions but such deferred payments have to be counted as debt in calculating the gearing level. The MAS guidelines have made the Reits regulatory environment clearer. But there is still a big question mark over whether this will help revive Suntec Reit's proposal on June 30 to acquire 11 properties from City Developments Ltd (CDL) for $788 million, of which 9.9 per cent was to be funded by deferred payments.

Suntec Reit had called off the deal on Oct 11, saying that despite its 'best endeavours' it could not obtain 'necessary regulatory approvals' in time. Some observers suspected the regulatory position on deferred payments then was the real stumbling block for the Suntec Reit-CDL deal.

But with the regulatory hurdle on deferred payments removed, shouldn't Suntec Reit revive its mega-million-dollar deal? There's still an apparent keen buyer, a still keen seller and clear regulations. Put the top brains from Suntec Reit, CDL, the two leading advising investment banks and the regulators together and we have a deal.

The above is probably wishful thinking. For a start, the original deadlines for Suntec Reit to convene a unit holders' meeting and complete the transaction - Sept 30 and Oct 15 respectively - have since lapsed. But this is a minor point. Buyers and sellers can always revive talks in any commercial deal.

A more important reason why Suntec Reit is not likely to resuscitate the deal is linked to its unit price. When the deal was first announced, Suntec Reit's unit price was $1.22. When Suntec Reit called off the deal, its unit price was $1.13. Last Friday, the unit price closed at $1.05 or 14 per cent lower than the June 30 level. The fall in its unit price following the collapse of the CDL deal also means that the deal may not be good to Suntec Reit at this juncture.

Reit unit holders typically approve property acquisitions that add to distribution per unit (DPU). The decline in Suntec Reit's unit price may mean that sticking to the $788 million price tag to buy CDL's properties will decrease its DPU. Holding DPU for Suntec Reit from its existing properties constant, the decline in its unit price would lead to an increase in the yield to unit holders. Going ahead with the CDL deal now at the same price of $788 million may actually decrease the return to Suntec Reit's unit holders. The yields on the properties in question have not been publicly disclosed.

For example, if the yield on Suntec Reit at $1.22 was 5.3 per cent, then the yield at a price of $1.05 is 6.1 per cent, assuming everything else is held constant. If the yield on the CDL properties to be acquired were 5.5 per cent, then the deal would have added to Suntec Reit's yield when the Suntec Reit's unit price was $1.22 but not when the unit price is $1.05.

How about CDL accepting a lower price in order to make the deal work? This is unlikely. The properties CDL is looking to sell are mainly office properties; including Fuji Xerox Towers, Plaza By The Park and City House. Office rents and occupancy levels have been on an upswing and the outlook is positive. Announcing its Q3 results last Thursday, office Reit CapitaCommercial Trust had cited property consultants' views that third-quarter prime office rents have risen 11 per cent year-to-date. It's therefore irrational for CDL to accept a price that's now lower than what it was over 3 1/2 months ago.

Regardless of how things pan out, it would be good for the MAS or the Singapore Exchange to enlighten all on why Suntec Reit could not get its regulatory approvals in time. A $788 million deal where professional advisers were involved should not have foundered because regulatory approvals were not obtained in time in a jurisdiction like Singapore's. It is timely for regulators to clear the air over the Suntec Reit-CDL deal. Such a move will further enhance investor confidence in Singapore's important Reit market and help it mature.

tfwee · Veteran

Extracted from UBS Report Dated 21 Oct 05

Treatment of deferred units

MAS has also require deferred units to be included as the calculation for aggregate leverage limit. This means that Suntec REIT 207m deferred units to be issued from 2007e could increase its gearing from current 32% to 40% limiting its ability to benefit from the lifting of gearing cap.

Comment: MAS does allowed deferred payment as long as it is included in the gearing ratio. Well, at least this means that this method is not wrong as long as the management let the investors know beforehand so that they can make better judgement when doing investment.

Anyway, Suntec did let investors know about this when they launched their IPO, it just that it has not been included in the gearing ratio as it is not a requirement by MAS.

tfwee · Veteran

KK wrote:

ANNOUNCEMENT DATE FOR RELEASE OF SUNTEC REIT’S FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2005
The Board of Directors of ARA Trust Management (Suntec) Limited, the Manager of Suntec REIT, is pleased to announce that Suntec REIT’s financial results for the period from 1 November 2004 (date of constitution) to 30 September 2005 will be released on Friday, 28 October 2005 after market close.

Can't wait for their result to be announced. Should be promising as the other REITs have been reporting better result. Should give a stock a lift if the result is good.

KK · Guru

ANNOUNCEMENT DATE FOR RELEASE OF SUNTEC REIT’S FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2005

The Board of Directors of ARA Trust Management (Suntec) Limited, the Manager of Suntec REIT, is pleased to announce that Suntec REIT’s financial results for the period from 1 November 2004 (date of constitution) to 30 September 2005 will be released on Friday, 28 October 2005 after market close.