Daily Morning Note – 26 January 2018


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Ascendas REIT – Operationally stable
Recommendation: Accumulate (Maintained), Last Close Price: $2.75
Target Price: $2.89, Analyst: Richard Leow
– Gross revenue and DPU in line with our forecast
– Positive renewal rate in Singapore kept the Total Portfolio renewal rate
positive, out-weighing the negative renewal rate in Australia
– Slight dip in occupancy for both Singapore and Australia portfolios
– Proposed acquisition of speculative build property in Australia

CapitaLand Mall Trust – High occupancy costs taking its toll
Recommendation: Neutral (Maintained), Last Close Price: S$2.10
Target Price: S$2.03, Analyst: Tan Dehong
– FY17 gross revenue, DPU within our estimates.
– NPI margins improved YoY from 69.5% to 70.1%.
– Rental reversions came in at -1.7% for FY17, dragged down by Westgate,
Bedok Mall.
– Expect continued pressure for rental reversions for FY18 on the back of high
occupancy costs and upcoming supply.
– Maintain Neutral with higher TP of S$2.03 (from S$2.01).


BreadTalk Group and Song Fa Holdings Pte. Ltd. opened the first Song Fa restaurant in Shanghai Jing An Kerry Centre.

First Sponsor Group Limited has entered into a sale and purchase agreement to
acquire 24.7% of Hotelmaatschappij Rotterdam B.V. for approximately €12.4mn (c.S$20.1mn). The Target Company owns Park Rotterdam Lessee B.V. and the title to a 254-bedroom five-star hotel currently operating under the name of “Hilton Rotterdam”.

PEC Ltd. secured contracts worth about S$40mn in Singapore and Southeast Asia. The projects are expected to be completed by the end of 2018.

Q & M Dental Group (Singapore) ended its interest in the proposed acquisition of Starbite Dental Centre.

Heatec Jietong Holdings Ltd released a negative profit guidance for its FY2017 financial results. The Group expects to report a net loss for FY2017 on persistently weak market conditions in the Marine and Offshore Engineering sector and loss on liquidation of its subsidiary.

Cache Logistics Trust proposed to issue S$100mn 5.50% subordinated perpetual
securities comprised in Series 001 pursuant to the S$1bn Multicurrency Debt Issuance

Golden Agri-Resources Ltd has issued S$150mn 4.75% senior unsecured fixed rate notes due 25 January 2021 pursuant to the US$1.5bn Medium Term Note Programme.

Source: SGX Masnet, Bloomberg, PSR

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