Annex 1 Summary of REITs in Singapore
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VALUE INVESTING IN REITS
Annex 1 AIMS AMP Capital Industrial REIT (“AIMSAMPI REIT”) (formerly MacarthurCook Industrial REIT) (Information based on Annual Report as at 31 March 2010) Date of listing:
19 April 2007
REIT Manager:
AIMS AMP Capital Industrial REIT Management Limited
1)
AIMS Financial Group (an Australian diversified non-bank financial services and investment group)
Sponsor: 2)
AMP Capital Investors (one of the largest institutional real estate fund managers in Australia and New Zealand)
Number of Units:
1,467 million (as at 31 March 2010)
Price per Unit:
S$0.215 (as at 31 March 2010), S$0.23 (2009), S$0.985 (2008)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield: Gearing and rating:
S$0.31 (2010), S$1.09 (2009), S$1.29 (2008)
1.98 cents (2010), 5.1234 cents (2009), 8.925 cents (2008) 9.2% (based on $0.0198 distribution at price of S$0.215) 28.9% (2010), 41.3% (2009), 39.0% (2008) / Corporate family rating Caa1(Moody’s). Interest cover 3.17 (2010), 7.4 (2009), 9.8 (2008)
Borrowings due within the next 12 months:
S$0.00
ANNEX 1
Industrial REIT (focus is on properties in Asia and Singapore). Owns 26 industrial properties (25 in Singapore and 1 in Saitama, Japan) Classification of
which includes UE Technology Park, 1A International Business Park,
REIT and Properties
Ossia Building, Xpress Building, Builders Centre, KTL Distribution
Owned:
Centre, Fook Tong Nam Building, GRP Industrial Building, King Plastic, Farnell Hub, 7 Clementi Loop. Property Usage : logistics & warehousing, manufacturing, office park, research & technology
Property investment portfolio: Net Property Income:
S$631 million (2010), S$530 million (2009) S$40 million (2010), S$37 million (2009)
Property Yield:
6.4% (2010), 7.0% (2009)
Awards:
None In August 2007, the controlling shareholder of the REIT, MacarthurCook was a troubled property funds management company. It was acquired by George Wang’s AIMS Financial Group. MI-REIT’s problems continued to loom with an unfunded obligation to purchase 1A International Business Park for $91 million and it had to refinance S$225 million of debt by year end. The unfunded contract was entered into by the former CEO of MI-REIT, Chris Calvert before he switched to become CEO of Cambridge.
Comments: To save the REIT, there was a deeply discounted rights issue and a punitive placement issue of S$40 million to cornerstone investors at S$0.28 per Unit when the NAV was S$0.94 per Unit. There was issuance of Placement Units and Rights Units in 2010 which caused the NAV and DPU to be lower than previous corresponding periods. The REIT is smallish in size. Further it had a checkered past and many investors lost money during the crisis when the controlling shareholder became insolvent and the REIT had no easy access to refinancing.
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VALUE INVESTING IN REITS
Ascendas Real Estate Investment Trust (“A-REIT”) (Information based on Annual Report as at 31 March 2010) Date of listing:
19 November 2002
REIT Manager:
Ascendas Funds Management (S) Limited
Sponsor:
Ascendas Group
Number and Percentage of Units held by REIT
Jurong Town Corporation owns 20.7% of the REIT through the Sponsor
Manager/Sponsor: Number of Units:
1,871,154,0001 (as at 31 March 2010)
Price per Unit:
S$1.92 (as at 31 March 2010)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield:
S$1.57 (2010), S$1.61 (2009), S$1.84 (2008). Due to recent revaluation on 31 March 2011 by upwards of $307 million, the revised NAV would be S$1.77 (as at 31 December 2010) 13.10cents2 6.8% (based on price as at 31 March 2010 @ S$1.92) 31.6% (2010), 35.5% (2009), 38.2% (2008). Leverage as at 31 Dec 2010
Gearing and rating:
is 34.7% which drops to 32.6% on revaluation. Interest cover ratio 4.6 times (31 Dec 2010) and cost of debt 3.84% (31 Dec 2010)
Borrowings due within the next 12
S$457 million
months: Business space and industrial REIT
Classification of REIT and Properties Owned:
Owns 93 properties3 comprising Business and Science Parks properties, hi-tech industrial properties, light industrial/flatted factories, logistics and distribution centres and warehouse retail facilities. Some of which are The Alpha, The Aries, PSB Science Park Building Telepark, Kim Chuan Telecommunications Complex, Hyflux Building, Tech Place I, Tech Place II, Changi Logistics Centre, C&P Logistics Hub, JEL Centre, OSIM HQ Building, HansaPoint@CBP, Courts Megastore (at Tampines) and Giant Hypermart (at Tampines), DBS Asia Hub4. Apart from acquiring completed properties, A-REIT also takes on builtto-suit/development projects
Property investment portfolio:
S$4,744 million
ANNEX 1
Net Property Income: Property Yield:
S$320 million 6.7% -
Winner of the “Most Transparent Company Award 2009” in the REITs category at the SIAS Invstors’ Choice Award 2009
-
Voted 1st in “Best for Responsibilities of Management and The Board of Directors in Singapore” and 3rd in “Best Overall for Corporate Governance in Singapore” at the 7th Annual
Awards:
Asiamoney Corporate Governance Poll 2009 -
Voted 8th Best Managed Company (after SIA, SingTel, ST Engineering, Olam Int’l, DBS, OCBC and Keppel Corp) and 11th Best Corporate Governance in Finance Asia’s 2010 annual poll of Asia’s best managed companies
Comments:
-
First business space and light industrial real estate investment trust listed on SGX-ST
Ascott Residence Trust (Information based on Annual Report as at 31 December 2010) 31 March 2006 with an initial portfolio size of S$856 million. In 2010 its Date of listing:
asset size is now S$2.71 billion. In 2009, S$1.56 billion. The increase in S$1.1 billion was due to acquiring 28 properties in 2010 from the Sponsor Ascott Residence Trust Management Limited, 100% owned by the
REIT Manager:
Sponsor who is 100% owned by Capitaland Limited, whose majority shareholder is Temasek
Sponsor:
Ascott Group Limited
Interests of Sponsor
Temasek through the Sponsor owns approximately 48% of all the units
in the REIT:
in the REIT5
Number of Units:
1.11 billion (as at 31 December 2011)
Price per Unit:
S$1.22 (as at 31 December 2010)
Net Asset Value per Unit:
S$1.28 (2010) and S$1.34 (2009)
Distribution per
7.54 in 2010 compared with 7.32 cents in 2009. 100% of all distribution
Unit:
income is issued to Unitholders.
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Distribution Yield:
6.18% (2010); 6.10% (2009) 40.3% (aggregate leverage) / Rating Baa3 (Moody’s), Effective
Gearing and rating:
borrowing rate: 3.2%. Interest cover ratio of 3.7 times (2010) and 3.5 times (2009)
Borrowings due within the next 12
S$468 million
months: Serviced residence REIT.
Classification of REIT and Properties Owned:
Owns 64 properties. This includes 46 serviced residences and 18 rental housing properties, located in cities spread out in Singapore, Indonesia, Japan, Philippines, China, Vietnam, Australia, France, United Kingdom, Germany, Belgium and Spain. The properties are managed under the “Ascott” brand, the “Somerset” brand and the “Citadines” brand
Property investment portfolio: Net Property Income: Property Yield:
S$2,577 million S$101.36 million 3.9% Properties within the REIT’s portfolio in Vietnam received awards from
Awards:
the Guide Award for excellent performance in hospitality for 2009 – 2010.
ANNEX 1
-
First Pan-Asian serviced residence real estate investment trust
-
Capitaland Limited is deemed to have interest (48%)
-
Temasek Holdings (Private) Limited is deemed to have interest (48%). Temasek is whollyowned by the Minister for Finance
Comments:
-
Subject to foreign currency exchange risks
-
On 24 December 2010 Ascott Limited made a police report against 3 employees in their Malaysian operations who stole S$14 million from the company
-
The proportion of gross profit from properties on master leases and guaranteed income from properties on management contracts with minimum income guarantee for 4Q 2010 was 41%.
Cache Logistics Trust (“Cache”) (Information based on unaudited Financial Statements and Distribution Announcements for period 11 February 20101 to 31 December 2010, Press Release on 27 January 2011 and SGX website) Date of listing: REIT Manager: Sponsor:
ARA-CWT Trust Management (Cache) Limited (60% owned by ARA and 40% owned by CWT) CWT Limited
Number and Percentage of Units held by REIT Manager/Sponsor: Number of Units:
1
12 April 2010 @ price of S$0.88 per Unit
25% held by Sponsor, ARA, C&P and related parties. Sponsor will end up with 12.2% of the total number of units on listing. Shares of Sponsor still subject to 1 year moratorium 633,862,855 (as at 31 Dec 2010)
This is the date of constitution.
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VALUE INVESTING IN REITS
S$0.88 (offer price) S$ 0.965 (as at 31 December 2010) Price per Unit: S$0.99 (as at 26 January 2011) S$0.93 (as at 16 March 2011) Net Asset Value per Unit: Distribution per Unit:
S$0.91 7.7 (forecast in prospectus), actual 7.5 (annualised)
Distribution Yield: 8.7% (forecast in prospectus) 7.8% (as at 31 Dec 2010) Gearing and rating:
26% (On listing)
Borrowings due within the next 12
S$0.00
months: Industrial REIT (focuses on properties in Asia-Pacific region which are Classification of REIT and Properties Owned:
predominantly used for logistics purposes). Owns 6 logistics warehouse properties in Singapore (CWT Commodity Hub, CWT Cold Hub, Schenker Megahub, C&P Changi Districentre, HiSpeed Logistics Centre and C&P Changi Districentre 2).6
Property investment portfolio: Net Property Income:
S$744 million S$41.4 million for 3 quarters
Property Yield:
7.4% (using annualised figures)
Awards :
N/A
Comments :
The REIT has a right of first refusal over sale of any assets by CWT.
ANNEX 1
Cambridge Industrial Trust (Information based on Annual Report as at 31 December 2010) Date of listing:
25 July 2006 Cambridge Industrial Trust Management Limited, owned by Oxley
REIT Manager:
Group (an innovative private investment firm) (26%) and Mitsui & Co., Ltd (20%) and the National Australia Bank (54%)
Sponsor:
CWT, Mitsui and miscellaneous individuals
Number of Units:
1,057 million
Price per Unit:
S$0.53 (as at 31 December 2010)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield: Gearing and rating: Borrowings due within the next 12 months:
S$0.61 (2010), S$0.60 (2009) 4.9 cents (2010), 5.4 cents (2009) 9.2 % (as at 31 December 2010) 34.7% (2010), 42.6% (2009), Interest cover 4 times, Rating BBB- , Cost of funds 5.7% S$0.00 although S$323.1 million is due on 17 Feb 2012 (comprising all the debt of the REIT) Industrial REIT.
Classification of REIT and Properties
Owns a diverse portfolio of industrial properties, logistics &
Owned:
warehousing, car showroom and service workshops comprising 43 properties
Property investment portfolio: Net Property Income: Property Yield:
S$906 million S$65 million 7.2% ‘Best Deal in Singapore 2009’ award at The Asset Magazine Triple A
Awards:
Asian Awards for Cambridge’s ability to secure refinancing during the height of the credit crisis in 2009 Cambridge had previously owned a key stake in MacarthurCook
Comments:
Industrial REIT (“MI-REIT”) and wanted to take over the REIT but was stopped by the MAS. After this failed attempt, Cambridge sold its units in MI-REIT on 1 December 2009.
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VALUE INVESTING IN REITS
CapitaCommercial Trust (“CCT”) (Information based on Annual Report as at 31 December 2010) Date of listing:
11 May 2004
REIT Manager:
CapitaCommercial Trust Management Limited
Sponsor:
CapitaLand Limited, 40% owned by Temasek Holdings (Private) Limited, a wholly owned subsidiary of the Ministry of Finance
Number and Percentage of
32% owned by Temasek Holdings (Private) Limited, a wholly owned
Units held by REIT
subsidiary of the Minister for Finance
Manager/Sponsor: Number of Units:
2,825 million (as at 28 Feb 2011)
Price per Unit:
S$1.50 (as at 31 December 2010)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield: Gearing and rating:
S$1.51 (2010), S$1.41 (2009) 7.83 cents 5.2 % 33.2% (2010), 28.6% (2009), Corporate rating “Baa2”, Interest cover 3.8 times (2010), 3.3 times (2009)
Borrowings due within the next 12
S$859 million (out of S$1,367 million debt).
months: Commercial REIT.
Classification of REIT and Properties Owned:
Was created through a distribution in specie by CapitaLand Limited to its shareholders. It was the first listed commercial REIT in Singapore. Owns Capital Tower (168 Robinson Road), Six Battery Road, HSBC Building (21 Collyer Quay), One George Street, Bugis Village, Wilkie Edge, Golden Shoe Carpark, Market Street Carpark
Property investment portfolio: Net Property Income: Property Yield:
S$5,475 million S$299 million 5.5%
ANNEX 1
-Voted ‘Best Mid-Cap Company for 2009’ in FinanceAsia’s 9th Poll of Aisa’s best managed companies. Awards: - Named runner-up in the SIAS Investors’ Choice Awards 2009 for Most Transparent Company in the REITs category.
CapitaMall Trust (“CMT”) (Information based on Annual Report as at 31 December 2010) Date of listing:
17 July 2002, the 1st REIT & largest to be listed in Singapore CapitaMall Trust Management Limited (an indirect wholly-owned
REIT Manager:
subsidiary of CapitaMalls Asia Limited, one of Asia’s largest listed shopping mall developers, owners and managers)
Sponsor:
Temasek Holdings (Private) Limited, a wholly owned subsidiary of the Minister for Finance
Number and Percentage of Units held by REIT
30% still held indirectly by Temasek Holdings (Private) Limited
Manager/Sponsor: Number of Units:
3,185 million
Price per Unit:
S$1.95 (31 Dec 2010), S$1.80 (31 Dec 2009)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield:
S$1.53 (2010), S$1.54 (2009) 9.24 cents (2010), 8.85 cents (2009) 4.7 % (2010), 4.9% (2009) 35.9% (2010), 30.2% (2009) / Corporate family rating “A2” and senior
Gearing and rating:
unsecured debt rating “A3”(Moody’s), Interest cover 3.6 times, Cost of debt 3.7%
Borrowings due within the next 12 months:
S$926 million
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VALUE INVESTING IN REITS
Retail REIT. Classification of
Owns Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building,
REIT and Properties
Plaza Singapura, Bugis Junction, Sembawang Shopping Centre, Jurong
Owned:
Entertainment Centre, Hougang Plaza, Raffles City Singapore (40% interest), Lot One Shoppers’ Mall, Bukit Panjang Plaza (90 out of 91 strata lots), Rivervale Mall and The Atrium@Orchard
Property investment portfolio: Net Property Income: Property Yield:
S$7,272 million S$399 million 5.5% - Won “Most Transparent Company – REITS” by SIAS -Won a Gold award for ‘Best Annual Report – REITs & Business Trusts’ at the Singapore Corporate Awards 2009.
Awards:
- Runner-up in the SIAS Investors’ Choice Awards 2009 for Most Transparent Company in the REITs category - Certificate of Excellence at the IR Magazine Awards 2009 (South East Asia)
Comments
Owns about 20% stake in CapitaRetail China Trust as at 31 Dec 2010
CapitaRetail China Trust (“CRCT”) (Information based on Annual Report as at 31 December 2010) Date of listing:
8 December 2006 CapitaRetail China Trust Management Limited (an indirect wholly-
REIT Manager:
owned subsidiary of CapitaMalls Asia Limited, one of Asia’s largest listed shopping mall developers, owners and managers)
Sponsor:
CapitaLand
Number and Percentage of
41% held by Temasek Holdings (Private) Limited, a wholly owned
Units held by REIT
subsidiary of the Minister for Finance
Manager: Number of Units:
625 million
Price per Unit:
S$1.24 (31 Dec 2010), S$1.28 (31 Dec 2009)
ANNEX 1
Net Asset Value per Unit: Distribution per Unit:
S$1.17 (2010), S$1.09 (2009) 8.36 cents (2010), 8.14 cents (2009)
Distribution Yield:
6.7% (2010), 6.4 % (2009)
Gearing and rating:
31.1% (2010), 33.6% (2009)
Borrowings due within the next 12
S$63.5 million (out of S$402 million)
months: Retail REIT (aimed at retail properties located in China, Hong Kong & Classification of
Macau).
REIT and Properties Owns 8 shopping malls located in Beijing, Shanghai, Zhengzhou
Owned:
(Henan Province), Huhhot (Inner Mongolia) and Wuhu (Anhui Province) Property investment portfolio: Net Property Income: Property Yield:
S$1,215 million (2010), S$1,156 million (2009) S$77 million 6.3% -Won the Bronze award in the Best Annual Report – REITs & Business
Awards:
Trusts category at the Singapore Corporate Awards 2009.
Comments:
CRCT has rights of first refusal to purchase assets held by CapitaMalls Asia-sponsored private funds, CapitaRetail China Development Funds I and II, and CapitaRetail China Incubator Fund.
CDL Hospitality Trusts (“CDLHT”) (Information based on Annual Report as at 31 December 2010) Date of listing:
19 July 2006 (IPO Price : S$0.83)
REIT Manager:
M&C REIT Management Limited
Sponsor:
Millenium & Copthorne Hotels plc or City Developments Limited
Number and Percentage of Units held by REIT
City Developments Limited or M&C Group holds 35% of the REIT
Manager/Sponsor: Number of Units:
959 million
Price per Unit:
S$2.08 (as at 31 Dec 2010), S$1.75 (as at 31 Dec 2009)
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VALUE INVESTING IN REITS
Net Asset Value per Unit: Distribution per Unit: Distribution Yield: Gearing and rating:
S$1.52 (2010), S$1.43 (2009) 10.2 cents 4.9% 20.4% (2010), 19.1% (2009), Credit rating BBB- from Fitch Inc. Interest cover 8.2 times (2010), 11 times (2009)
Borrowings due within the next 12
S$0.00
months: Hospitality REIT. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”) and CDL Hospitality Business Trust Classification of
(“HBT”), a business trust. H-REIT is a hotel REIT in Singapore. HBT is
REIT and Properties
currently dormant.
Owned: H-REIT owns Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel and Novotel Clarke Quay in Singapore, Rendezvous Hotel Auckland (NZ), Orchard Hotel Shopping Arcade and 5 hotel properties in Brisbane and Perth Property investment portfolio: Net Property Income:
S$1,787 million (2010), S$1,502 million (2009) S$115 million (2010), S$86 million (2009)
Property Yield:
6.4% (2010), 5.7%
Awards:
N/A -Millennium & Copthorne Hotels plc – deemed interested (39.547%)
Comments: -City Developments Limited – deemed interested (39.547%)
First Real Estate Investment Trust (“First REIT”) (Information based on Annual Report as at 31 December 2010) Date of listing:
11 December 2006
REIT Manager:
Bowsprit Capital Corporation Limited
Sponsor:
PT Lippo Karawaci Group (the largest listed property company in Indonesia)
ANNEX 1
Number and Percentage of Units held by REIT
Lippo Group owns 22% of the REIT (or 136 million Units)
Manager: Number of Units:
622 million
Price per Unit:
S$0.765 (as at 19 Jan 2011), S$0.86 (as at 20 January 2010)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield: Gearing and rating:
S$0.98 6.63 cents (2010), 7.62 cents (2009) 8.7% (2010), 8.9 % (2009). The REIT has forecast a distribution yield of 8.4% for 2011 based on DPU 6.4 cents and closing price of S$0.765 9.4% (2010), 15.5% (2009)
Borrowings due within the next 12
S$0.00
months: Healthcare REIT. Targets real estate and/or real estate-related assets in Asia that are primarily used for healthcare and/or healthcare-related purposes. Classification of REIT and Properties
Owns Pacific Healthcare Nursing Home@Bukit Merah, Pacific
Owned:
Healthcare Nursing Home II @ Bukit Panjang, The Lentor Residence, Pacific Cancer Centre @ Adams Road in Singapore and Siloam Hospitals Lippo Village, Siloam Hospitals Kebon Jeruk, Siloam Hospitals Surabaya and Imperial Aryaduta Hotel & Country Club in Indonesia.
Property investment portfolio: Net Property Income:
S$613 million (2010), S$341 million (2009) S$30 million (2010), S$30 million (2009) 8.76% (Note: the 2 new centres, Mochtar Riady Comprehensive Cancer Centre hospital (“MRCCC”) and Siloam Hospitalis Lippo Cikarang
Property Yield:
(“SHLC”) were opened in December 2010. As such although they add to the property investment portfolio, no income was recorded for 2010. The property yield should properly disregard these assets that were just acquired.
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VALUE INVESTING IN REITS
Awards:
N/A Gearing is expected to rise to 17% to fund the MRCCCC and SHLC. Stable long-term Singapore dollar Master Lease Agreements (a) Fixed yearly increment for Singapore properties;
Comments:
(b) Base plus fixed component (2X Singapore CPI, capped at 2%) plus variable components (function of turnover growth) for Indonesia properties; (c)
Rental for Indonesia properties are denominated in Singapore dollar Fixed yearly increment for
Fortune Real Estate Investment Trust (“Fortune REIT”) (Information based on Annual Report as at 31 December 2010) Date of listing:
12 August 2003, with dual primary listing on the Stock Exchange of Hong Kong (“SEHK”) ARA Asset Management (Singapore) Limited (which is part of ARA
REIT Manager:
Asset Management Limited Group, a member of the Hong Kong based multinational conglomerate Cheung Kong (Holdings) Limited)
Sponsor:
Cheung Kong (Holdings) Limited
Number and Percentage of Units held by REIT
The Sponsor is deemed to own 525 million Units in the REIT or 31%
Manager/Sponsor: Number of Units:
1,672 million
Price per Unit:
HK$4.00 (as at 31 Dec 2010), HK$3.13 (as at 31 Dec 2009)
Net Asset Value per Unit: Distribution per Unit:
HK$6.18 (2010), HK$5.33 (2009) HK$0.244 (2010), HK$0.302 (2009)
Distribution Yield:
6.1 % (2010), 9.6% (2009)
Gearing and rating:
21.0% (2010), 23.7% (2009)
Borrowings due within the next 12 months:
HK79 million
ANNEX 1
Suburban retail REIT. Classification of REIT and Properties
Its portfolio consists of 14 private housing estate retail malls and
Owned:
properties in Hong Kong through ownership of special purpose companies.
Property investment portfolio: Net Property Income: Property Yield:
HK$13,300 million (2010), HK$11,500 million (2009) HK$597 million (2010), HK495 million (2009) 4.5% (2010), 4.3% (2009) Fortune REIT’s 2008 annual report won 2 awards in the 2009
Awards:
International Annual Report Competition.
Frasers Centrepoint Trust (“FCT”) (Information based on Annual Report as at 30 September 2010) Date of listing:
5 July 2006 @ IPO price of S$1.03
REIT Manager:
Frasers Centrepoint Asset Management Limited
Sponsor:
Frasers Centrepoint Limited (which is a wholly owned subsidiary of Fraser and Neave, Limited)
Number and Percentage of Units held by REIT
Fraser Centrepoint Limited owns 43% of the REIT
Manager/Sponsor: Number of Units:
768 million (as at 11 Nov 2010)
Price per Unit:
S$1.48 (as at 30 September 2010)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield: Gearing and rating:
S$1.29 (2010), S$1.22 (2009) 8.20 cents 5.5 % (as at 30 Sept 2010) 30% / Corporate rating Baa1 (Moody’s) & Corporate rating BBB+ (Standard & Poors)
Borrowings due within the next 12 months:
S$305 million
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VALUE INVESTING IN REITS
Classification of REIT and Properties Owned:
Retail REIT. Owns 4 quality suburban malls in Singapore (Causeway Point, Northpoint, YewTee Point and Anchorpoint)
Property investment portfolio: Net Property Income: Property Yield:
S$1,439 million (2010), S$1,100 million (2009) S$80 million (2010), S$60 million (2009) 5.6% Asiamoney Magazine conferred the ‘Small-Cap Corporate of the Year in
Awards:
Singapore’ award on FCT in December 2009.
Comments:
FCT owns a 31% stake in Hektar REIT, Malaysia’s first retail focused REIT.
Frasers Commercial Trust (“FCoT”) (formerly Allco Commercial Real Estate Investment Trust) (Information based on Annual Report as at 30 September 2010) Date of listing:
30 March 2006
REIT Manager:
Frasers Centrepoint Asset Management (Commercial) Ltd Frasers Centrepoint Limited (which is a wholly owned subsidiary of
Sponsor:
Fraser and Neave, Limited). Frasers Centrepoint acquired 17% stake in the REIT and the REIT Manager for S$180 million in August 2008.
Number and Percentage of Units held by REIT
261,573,228 units / 8.4%
(as at 30 November 2010)
Manager/Sponsor: Number of Units:
3,104 million (as at 30 Sept 2010) and 343 million CPPUs7
Price per Unit:
S$0.155 (as at 30 Sept 2010)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield: Gearing and rating:
S$0.28 (30 Sept 2010). After consolidation of 5 to 1 Unit in 2011, S$1.38 1.12 cents 7.23 % 39.6% / Corporate rating BB (Standard & Poor’s), Interest cover 2.59 x with costs of borrowing at 4.3%
ANNEX 1
Borrowings due within the next 12
S$0.00
months: Commercial REIT. Classification of
Owns 10 quality office and business space buildings in Singapore,
REIT and Properties
Australia and Japan (China Square Central, 55 Market Street, KeyPoint,
Owned:
Alexandra Technopark, Central Park, Caroline Chisholm Centre, Cosmo Plaza, Azabu Aco Building, Galleria Otemae Building, Ebara TechnoServe Headquarters Building)
Property investment portfolio: Net Property Income:
S$1,955 milion8 S$93 million
Property Yield:
4.8%
Awards:
N/A -FCoT has a 39% indirect investment in AWPF, an Australian registered managed investment scheme, with a carrying value of A$23.8 million as at 30 September 2010. AWPF owns 3 properties in Australia (50% interest in Ernst & Young Centre, 50% interest in World Square Retail
Comments:
Complex and Public Car Park and 100% interest in Neeta City Shopping Centre, all in Sydney) - Frasers Centrepoint Limited – deemed interested (24.8%) - Fraser and Neave, Limited – deemed interested (24.8%)
K-REIT Asia (“K-REIT”) (Information based on Annual Report as at 31 December 2010) Date of listing: REIT Manager: Sponsor:
28 April 2006 K-REIT Asia Management Limited (a wholly owned subsidiary of Keppel Land Limited) Keppel Land Limited
Number and Percentage of
Keppel Corporation Limited holds 76% of the REIT. Temasek Holdings
Units held by REIT
Pte Ltd owns 21% of Keppel Corporation Limited.
Manager/Sponsor:
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VALUE INVESTING IN REITS
Number of Units:
1,357 million (as at 25 February 2011)
Price per Unit:
S$1.41 (as at 31 Dec 2010), S$1.10 (as at 31 December 2009)
Net Asset Value per Unit: Distribution per Unit:
S$1.52 (2010), S$1.50 (2009) 6.37 (2010), 5.28 cents (2009)
Distribution Yield:
4.5% (2010), 4.8% (2009)
Gearing and rating:
37.0% (2010) and 27.7% (2009) / Corporate rating Baa3 (Moody’s)
Borrowings due within the next 12
S$0.00
months: Commercial REIT (focus is on properties in Singapore and Pan-Asia). Classification of REIT and Properties Owned:
Owns the following commercial properties : Bugis Junction Towers, 1/3 interest in Marina Bay Financial Centre Towers 1 & 2, One Raffles Quay and Prudential Tower Property in Singapore and 275 George Street in Brisbane, Australia.
Property investment
S$1,025 million (or if property under development were included,
portfolio:
S$3,487 million)
Net Property Income: Property Yield:
S$67 million 6.6% (not taking into account property under development) Won Silver Award for ‘Best Investor Relations’ in the category of companies with $300million to less than $1billion market capitalisation
Awards:
and Silver Award for ‘Best Annual Report under the REITS and Business Trusts’ category at the Singapore Corporate Awards 2009 -There was a rights issue on 20 November 2009
Comments:
Since listing on 28 Apr 2006 to 31 Dec 2010, investors enjoyed a70.4% return on distribution yield and capital return. From 31 Dec 2008 to 31 Dec 2010, investors enjoyed a 34%.
Lippo Malls Indonesia Retail Trust (“LMIR Trust”) (Information based on Annual Report as at 31December 2010)
ANNEX 1
Date of listing: REIT Manager: Sponsor: Number and Percentage of Units held by REIT Manager:
19 November 2007 Lippo-Mapletree Indonesia Retail Trust Management Ltd, 100% owned by the Sponsor. PT Lippo Karawaci Tbk (Indonesia’s largest listed property company) Mapletree owns 14% of the REIT and Lippo Group owns 18% of the REIT. Temasek Holdings (Private) Limited is deemed to be a 14% holder of the REIT by virtue of its shareholding in Mapletree. Mapletree recently sold out its stake to the sponsor and is no longer REIT Manager.
Number of Units:
1,083 million (as at 10 March 2011)
Price per Unit:
S$0.53 (as at 31 Dec 2010), S$0.51 (as at 31 December 2009)
Net Asset Value per Unit:
S$0.83 (2010), S$0.83 (2009) 4.44 cents (2010), 5.04 cents (2009). Drop in distributable income by
Distribution per Unit:
S$6.1 million was attributed to lower interest income, higher interest expense, higher income tax expenses and realised loss of foreign exchange forward contracts (as opposed to realised gain in foreign exchange forward contracts for FY2009).
Distribution Yield:
8.4% (2010), 9.9 % (2011)
Gearing and rating:
10.3% (2010), 10.5% (2009), Interest cover 11.3 times, Cost of Debt 7.7%
Borrowings due within the next 12
S$0.00
months: Retail REIT (properties in Indonesia). Classification of REIT and Properties
Portfolio comprises 10 retail malls (6 in Jakarta, Bogor and Bekasi
Owned:
(Greater Jakarta), 2 in Bandung and 2 in Medan) and 7 retail spaces (3 in Greater Jakarta and 4 in Semarang, Medan, Madiun and Malang).
Property investment portfolio: Net Property Income:
S$1,082 million (2010), S$1,056 million (2009) S$85 million (2010), S$75 million (2009)
Property Yield:
7.9% (2010), 7.1% (2009)
Awards:
N/A REIT is trading at a steep discount of 36% to NAV. Note the currency
Comments:
risk investors take when investing in the REIT. This risk manifested itself in a reduction in distribution per unit for 2010.
21
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VALUE INVESTING IN REITS
Mapletree Commercial Trust (“Mapletree Commercial”) (Information based on Prospectus and information in www.reitdata.com) Date of listing:
18 April 2011 @ price of S$0.88 per Unit
REIT Manager:
Mapletree Commercial Trust Management Ltd
Sponsor:
The REIT Manager is wholly owned by Mapletree Investments Pte Ltd.
Number and Percentage of Units held by REIT
40% held by Sponsor. Temasek owns 75% of the REIT
Manager/Sponsor: Number of Units:
1,864 million S$0.88 (offer price)
Price per Unit: S$ 0.87) (as at 12 June 2011) Net Asset Value per Unit: Distribution per Unit:
S$0.91 4.97
Distribution Yield:
5.7% (forecast in prospectus to 31 March 2012) 6.2% (2012/2013)
Gearing and rating:
39%
Borrowings due within the next 12
S$0.00
months: Classification of REIT and Properties Owned: Property investment portfolio: Net Property Income:
Mall and Offices Owns VivoCity (the largest mall in Singapore), Bank of America Merrill Lynch HarbourFront office building, PSA Building (office and mall). S$2,822 million S$126.3 million (forecast 2011/2012)
Property Yield:
4.5% (using annualised figures)
Awards :
N/A
Mapletree Industrial Trust (“MIT”) (Information based on MIT’s Investor Presentation Slides for Investor Meetings as of 14 March 2011 and SGX website as at 17 March 2011)
ANNEX 1
Date of listing:
21 October 2010 (Financial year end 31 March)
REIT Manager:
Mapletree Industrial Trust Management Ltd
Sponsor:
Mapletree Investments Pte Ltd
Number and Percentage of Units held by REIT
Sponsor has a committed 31% stake in the REIT
Manager: Number of Units:
1,462 million (as at 14 March 2011) S$0.93 (offer price)
Price per Unit: S$1.01 (as at 16 March 2011) Net Asset Value per Unit: Distribution per Unit:
S$0.87 3.10 cents9 (forecast Year 2010/2011)
Distribution Yield:
6.59%10 (forecast Year 2010/2011)
Gearing and rating:
38% / Credit rating BBB+ (Fitch Ratings)
Borrowings due within the next 12
S$0.00
months: Industrial REIT (focus on industrial properties in Singapore, excluding Classification of REIT and Properties Owned:
those for logistics purposes). 70 properties from comprising 3 business park buildings, 53 flatted factories, 7 stack-up/ramp-up buildings, 6 light industrial buildings and 1 warehouse.
Property investment portfolio:
S$2,193 million
Net Property
S$29.6 million (Based on period 21 October 2010 to 31 December
Income:
2010)
Property Yield:
5.4% (based on the annualised NPI)
Awards:
N/A
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VALUE INVESTING IN REITS
-Lock-up period of 180 days apply to Sponsor, Sponsor entities and Manager.
Comments:
-Sponsor granted MIT right of first refusal over future sale of industrial or business park properties (excluding Mapletree Business City and Comtech) -Public & institutional investors – 69%, Sponsor – 31%
Mapletree Logistics Trust (“MapletreeLog”) (Information based on Annual Report and Summary Report as at 31 December 2009 and 4th quarter unaudited financial announcement) Date of listing:
28 July 2005
REIT Manager:
Mapletree Logistics Trust Management Limited
Sponsor:
Mapletree Investments Pte Ltd
Number and Percentage of
Temasek Holdings (Private) Limited is deemed to have 44.4% interest in
Units held by REIT
the REIT
Manager/Sponsor: Number of Units:
2,054 million (as at 31 December 2009)
Price per Unit:
S$0.965 (as at 31 Dec 2010), S$0.79 (as at 31 Dec 2009)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield:
S$0.85 (2010), S$0.85 (2009) 6.09 cents (2010), 6.02 cents (2009) 6.3% (2010), 7.6% (2009) 40% (31 March 2011 with the acquisition of 15A Tuas Ave),
Gearing and rating: 36.7% (2009) / Corporate family rating Baa2 (Moody’s) Borrowings due within the next 12
S$172 million
months: Classification of REIT and Properties Owned:
Industrial REIT (focuses on logistics and distribution spaces in Asia). Its portfolio comprises of 82 properties (48 in Singapore, 11 in Malaysia, 8 in Hong Kong, 8 in Japan, 6 in China and 1 in South Korea).
ANNEX 1
Property investment portfolio: Net Property Income: Property Yield:
S$3,471 million (2010), S$2,917 million (2009) S$193 million (2010), S$180 million (2009) 5.6% (2010), 6.20% Nominated by the Singapore Corporate Awards in the Category of
Awards:
‘Best Investor Relations in REITs’ in 2009. -There was rights issue in August 2008 and private placement in November 2009. - Sponsor has been undertaking logistics development projects which
Comments:
will be offered to Mapletree Log to purchase on a first right of refusal basis once they are completed or subsequently leased out. Management has said they plan to maintain medium term target average gearing at 45%.
Parkway Life REIT (“PLife REIT”) (full name is Parkway Life Real Estate Investment Trust) (Information based on Annual Report as at 31 December 2010) Date of listing:
23 August 2007
REIT Manager:
Parkway Trust Management Limited
Sponsor:
Parkway Holdings Limited, the largest shareholder of which is Khazanah Nasional Berhad @ 23% (2009)
Number and Percentage of Units held by REIT
Khazanah is deemed to hold 36% of the REIT
Manager/Sponsor: Number of Units
605 million (as at 1 March 2011)
Price per Unit:
S$1.65 (as at 31 Dec 2010), S$1.22 (as at 31 Dec 2009)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield:
S$1.41 (2010), S$1.39 (2009) 8.79 cents (2010), 7.74 cents (2009), 6.83 cents (2008) 5.3% (2010), 6.3% (2009)
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VALUE INVESTING IN REITS
Gearing and rating:
34.6% (2010), 27.4% (2009) / Credit rating BBB (Fitch Inc), Interest cover of 5.8 times, Cost of debt 1.94%
Borrowings due within the next 12
S$0
months: Healthcare REIT. Targets real estate and/or real estate-related assets in Asia-Pacific (including Singapore) that are primarily used for healthcare and/or Classification of
healthcare-related purposes).
REIT and Properties Owned:
Owns 33 properties comprising 3 hospitals in Singapore (Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital (formerly East Shore Hospital)) and 30 healthcare assets (29 nursing homes and 1 pharmaceutical product distributing and manufacturing facility) in Japan.
Property investment portfolio: Net Property Income: Property Yield: Awards:
S$1,303 million (2010), S$1,154 million (2009) S$74 million (2010), S$62 million (2009), S$50 million (2008) 5.7% (2010), 5.4% (2009) Awarded the 2008 Best Managed Small-Cap Corporate of the Year in Singapore by AsiaMoney.
ANNEX 1
Most of the REIT’s properties are characterised by locked-in master leases, with weighted average term to expiry of 13.15 years and 100% committed occupancy across the portfolio. As at 31 December 2010, 98.4% of all the leases are built-in with rent review provision, of which 87.9% are with downside revenue protection. Total number of lessees: 18. Comments:
The 3 hospitals in Singapore are on a 15 + 15 years master lease with Parkway Hospitals Singapore Pte Ltd and are “triple net lease” i.e. the property tax, property insurance and property operating expenses are borne by lessee. 1 April 2011 Parkway Life REIT announced that none of its Japan properties have been structurally affected by the earthquake and the business at all 30 properties continue to be in operation.
Sabana Shari’ah Compliant Industrial REIT (“Sabana REIT”) (Information based on Sabana REIT’s Presentation Slides for Euromoney Seminars 10th Anniversary Islamic Finance Summit and SGX website as at 17 March 2011) Date of listing: REIT Manager:
26 November 2010 @ S$1.05 per Unit Sabana Real Estate Investment Management Pte Ltd, 51% owned by the Sponsor
Sponsor:
Freight Links Express Holdings Limited
Percentage of Units
6.1% through Singapore Enterprises Pte Ltd, a wholly owned subsidiary
held by Sponsor:
of the Sponsor (as at 21 Dec 2010)
Number of Units:
632.8million (as at 14 January 2011) S$1.05 (offer price)
Price per Unit: S$0.94 (as at 16 March 2011) Net Asset Value per Unit: Distribution per Unit:
S$0.99 N/A
Distribution Yield:
Forecast 12-month forward DPU yield – 8.2% (as at 26 November 2010)
Gearing and rating:
26.5%
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VALUE INVESTING IN REITS
Borrowings due within the next 12
None
months: Industrial REIT (focus on industrial properties in Asia which are in line
Classification of REIT and Properties Owned:
with Shari’ah investment principles). Portfolio comprises of 15 industrial properties in Singapore.
Property investment portfolio: Net Property
S$885million (Total assets as February 2011) S$66.16
Income11: Property Yield:
7.5% Awarded ‘IPO Deal of the Year’ and ‘Real Estate Deal of the Year’ by
Awards:
Islamic Finance News for year 2010.
Comments:
-claims to be the world’s largest Shari’ah compliant REIT upon listing
Saizen Real Estate Investment Trust (Information based on Annual Report 30 June 2010) Date of listing:
9 November 2007
REIT Manager:
Japan Residential Assets Manager Limited
Sponsor:
Japan Regional Assets Manager Limited
Number and Percentage of Units held by REIT
3.8 million / 0.3%
Manager: Number of Units:
1.109 billion (as at 14 September 2010)
Price per Unit:
S$0.16 (as at 30 June 2010)
Net Asset Value per Unit: Distribution per Unit:
S$0.4012 0.26 cents
Distribution Yield:
1.62%
Gearing and rating:
37%, Rating of Caa1 (Moody’s)
Borrowings due within the next 12 months:
JPY7.8 billion (S$123 million)
ANNEX 1
Japanese residential REIT Saizen REIT’s portfolio consists of 161 residential properties located over 13 regional cities in Japan. The properties are generally located in close proximity to business districts and transportation hubs and/or in residential neighbourhoods, targeting mass market tenants such as Classification of
small families, working couples without children, working singles and
REIT and Properties
students.
Owned: Saizen REIT is the first REIT listed in Singapore to offer access to exclusively Japanese real estate and, in particular, residential properties. Its investment objective is to invest in a diversified portfolio of income-producing real estate located in Japan, which is used primarily for residential and residential-related purposes, and real estate-related assets. Property investment portfolio: Net Property Income:
JPY44 billion (S$694 million) JPY2.78 billion (S$43.8 million)
Property Yield:
6.3%
Awards:
N/A Saizen REIT is not recommended for the faint hearted. Saizen REIT defaulted on its short term loans on November 2009. For the last 2 financial years, Saizen REIT faced serious financial difficulties in repaying its loans and as a result, there was a suspension of distribution for the last 2 financial years preceding the 2010 financial
Comments:
year. The suspension of distribution was to enable the short term debts owed by the REIT to be repaid. Since then, the REIT has recommenced its distribution. Due to the recent tsunami and earthquake causing concern about a nuclear leak, there will be a knee jerk reaction towards the REIT which may cause the price to dip momentarily.
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VALUE INVESTING IN REITS
Starhill Global REIT (full name is Starhill Global Real Estate Investment Trust) (formerly Macquarie Prime Real Estate Investment Trust) (Information based on Annual Report as at 31 December 2010) Date of listing:
20 September 2005 YTL Starhill Global REIT Management Limited
REIT Manager: (formerly known as YTL Pacific Star REIT Management Limited) Sponsor:
YTL Corporation Berhad
Number and Percentage of Units held by REIT
YTL Corporation are deemed to have 30% interest in the REIT
Manager: Number of Units:
1,943 million (as at 1 March 2011)
Price per Unit:
S$0.625 (31 Dec 2010), S$0.525 (as at 31 December 2009)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield: Gearing and rating:
S$0.94 (2010), S$0.82 (2009) 3.9 cents (2010), 3.80 cents (2009) 6.2% (2010), 7.2% (2009) 30.2% (2010), 26.9% (2009), Corporate rating BBB (S&P), Interest cover 4.3 times and cost of debt 3.5%.
Borrowings due
S$1 million. With new financing, the weighted debt maturity profile was
within the next 12
extended to 3.1 years. Outstanding debt is S$842 million as at 31 Dec
months:
2010 Retail and Office REIT.
Classification of
Portfolio comprises 11 properties in Singapore, China, Japan and
REIT and Properties
Australia, namely stakes in Wisma Atria and Ngee Ann City (Singapore),
Owned:
full ownership in Renhe Spring Zongbei Department Store (Chengdu), 7 properties in Tokyo and David Jones Building (Perth) which was completed in January 2010.
Property investment portfolio: Net Property Income:
S$2,654 million (2010), S$1,982 million (2009) S$130 million (2010), S$107 million (2009)
ANNEX 1
Property Yield:
4.9% (2010), 5.4% (2009)
Awards:
N/A Has a S$2 billion Multicurrency MTN Programme and a S$137 million
Comments:
5 year fixed rate MTN programme in Malaysia. CEO is Mr Ho Sing and Executive Chairman is Tan Sri Dato’ Dr Francis Yeoh
Suntec Real Estate Investment Trust (“Suntec REIT”) (Information based on Annual Report as at 31 December 2010) Date of listing: REIT Manager: Sponsor:
9 December 2004 ARA Trust Management (Suntec) Limited, the wholly owned subsidiary of ARA Asset Management Limited Suntec City Development Pte Ltd
Number and Percentage of Units held by REIT
Suntec City Development Pte Ltd holds 6% of the REIT
Manager: Number of Units:
2,209 million
Price per Unit:
S$1.50 (as at 31 Dec 2010), S$1.35 (as at 31 Dec 2009)
Net Asset Value per Unit: Distribution per Unit: Distribution Yield:
S$1.80 (2010), S$1.78 (2009 9.86 cents (2010), 11.70 cents (2009) 6.6% (2010), 8.7 % (2009) 38.4% (2010), 33.3% (2009) / Corporate family rating of Baa2 (Moody’s)
Gearing and rating:
and Unsecured debt rating of Baa3 (Moody’s). In 2009, it was Baa1 and Baa2 respectively. Cost of Debt 3.5%
Borrowings due within the next 12 months:
S$405 million, comprising S$270 million convertible bonds that are convertible @1.723, with effective interest rate of 5.25%
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VALUE INVESTING IN REITS
Retail and Office REIT.
Classification of REIT and Properties Owned:
Its portfolio comprises of Park Mall, Chijmes, Suntec City Mall, 57% of Suntec City Office Towers and a 1/3 interest in One Raffles Quay and one third interest in Marina Bay Financial Centre Towers 1 and 2. It also acquired a 20% interest in Suntec Singapore International Convention and Exhibition Centre.
Property investment portfolio: Net Property Income: Property Yield:
S$4,452 million (2010). S$4,202 million (2009) S$193 million (2010), S$192 million (2009) 4.3% (2010), 4.6% (2009) Voted Runner-up for ‘Most Transparent Company Award” in 2010 and
Awards:
2009 in the REITS category at the SIAS Investors’ Choice Awards 2010 and 2009 respectively.
Comments:
There was a private placement of 128.5million new units to partially repay a S$825million term loan facility in December 2009.
1
Includes new units which were issued in August 2009.
2
A-REIT achieved a full year DPU of 13.10 cents, which is translated to a yield of 6.8% based on the
closing price of S$1.92 per unit on 31 March 2010. In view of the new units issued in August 2009, the fully diluted pro forma DPU for FY08/09 would be 11.76 cents. 3
A-REIT is said to own 92 properties with book value of $4.8billion as at 30 June 2010 under Corporate
Profile on its website www.a-reit.com as at 15 March 2011. 4
This property has no contribution to gross income for FY09/10 as DBS Asia Hub was acquired on 31
March 2010. 5
See page 33 of the Annual Report for FY2010
6
These properties were acquired on 12 April 2010. Cache has (in March 2011) entered into Sale and
Purchase Agreements to acquire 6 Changi North Way and 4 Penjuru Lane (estimated completion during 1st half of 2011), which will increase the REIT’s assets to S$783.9million. CPPU = Convertible Perpetual Preferred Units, convertible into Ordinary Units @ 1/0.2369 x No. of
ANNEX 1 CPPU converted. Each CPPU pays a distribution of 5.5% per annum. Record Date: 9 Feb 2010 8
Includes investment property held for sale.
9
For the period from listing date of 21 October 2010 to 31 March 2011.
10
Based on MIT’s price on 4 March 2011 of $1.06 and the annualised forecast DPU for the period from
listing date to 31 March 2011, together with assumptions in Prospectus. 11
Forecast statements for 2011 as found in the Prospectus
12
Based on 953,203,055 Units as at 30 June 2010 and S$/JPY exchange rate 63.4 as at 30 June 2010
33
