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PHILLIP SECURITIES |
UOB KAYHIAN |
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Suntec REIT Resilient Singapore performance sustained
• Gross revenue for FY24 inched up by 0.2% YoY to S$463.6mn, underperforming our forecast at 93% of full-year estimates. The improvement was supported by strong rental reversions of 22.9% for retail and 10.6% for office spaces. • NPI slipped by 0.8% YoY to S$310.8mn due to the absence of a property tax refund, in line with our forecast and forming 100% of the FY24 estimate. DPU plummeted by 13.2% YoY to 6.19 cents, driven by higher financing costs and the exhaustion of the S$23mn capital top-up. FY24 DPU stands at 6.19 cents, which is within our expectations, at 100% of the full-year forecast.
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CapitaLand Ascendas REIT (CLAR SP) 2H24: Stepping Up On Redevelopment Projects Locally And Abroad
CLAR achieved an average rental reversion of 8.6% in 4Q24 (Singapore: +7.2%, Australia: +6.6%, UK/Europe: +10.9% and US: +11.6%). It saw a broad-based rise in occupancies across Singapore, Australia and the US. CLAR intends to expand its logistics portfolio in the US. It is redeveloping a data centre in Welwyn Garden City in the UK and logistics properties in Charleston in the US. CLAR provides a 2025 distribution yield of 5.8% (MINT: 6.4%). Maintain BUY with a target price of S$3.51.
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UOB KAYHIAN |
LIM & TAN |
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Frasers Logistics & Commercial Trust (FLT SP) Resiliency And Growth From Focus On Logistics Properties
FLT’s business update for 1QFY25 demonstrated continued strong positive rental reversion for logistics properties in Australia. It maintained full occupancy for its logistics properties in Australia, Europe and the UK. Services Australia renewed its lease for Caroline Chisholm Centre for 12 years. FLT’s ability to acquire is supported by a low aggregate leverage of 36.2% and large debt headroom of S$433m. FLT provides an FY25 yield of 7.3% (MLT: 6.7%). Maintain BUY. Target price: S$1.26.
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DBS Group / DBS ($44.68, up 0.36) achieved a record performance in 2024 as net profit rose 11% to SGD 11.4 billion, with return on equity at 18.0%, coming in above expectations. Total income grew 10% to SGD 22.3 billion as commercial book net interest margin expanded, fee income crossed SGD 4 billion for the first time, treasury customer sales reached a new high and markets trading income rebounded. The cost-income ratio was unchanged at 40%. Asset quality was sound with specific allowances at 13 basis points of loans. For the fourth quarter, net profit grew 10% from a year ago to SGD 2.62 billion. Total income rose 10% to SGD 5.51 billion from growth in both the commercial book and markets trading. The cost-income ratio was stable. Specific allowances were 20 basis points of loans while general allowances of SGD 20 million were written back. As part of DBS’ CSR commitment of up to SGD 1 billion over 10 years to support vulnerable communities, SGD 100 million was set aside from the year’s profits. A special onetime bonus of SGD 1,000 each will be paid to all staff except senior managers as an additional reward for their contribution to the record performance. A total of SGD 32 million was set aside for this. Thus, the normalized dividend plus capital returns of 60 cents/year over the next 3 years, the yield on DBS at its last traded price of $44.68 would be a significant 6.7%. While upside to consensus target price of $46 is only 3%, the attractiveness of the quarterly dividends plus quarterly capital returns should sustain interest in the stock. We upgrade DBS to “Accumulate”. |
| LIM & TAN | OCBC RESEARCH |
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Elite UK REIT (GBP 0.30, unchanged) announced the REIT’s financial results for the half-year and full-year twelve months ended 31 December 2024 (“2H 2024” and “FY2024”, respectively). Elite UK REIT reported a 2H 2024 DPU of 1.47 pence and FY2024 DPU of 2.87 pence. FY2024 DPU was 5.0% higher year-on-year, adjusted for FY2024 weighted average Units in issue. Elite UK REIT’s market cap stands at GBP178 mln and currently trades at 0.7x PB, with a dividend yield of 9.6%. Consensus target price stands at GBP0.36, representing 20% upside to consensus share price.
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Summary: Bumitama Agri Ltd (BAL SP) – Healthy RetracementBumitama Agri Ltd. (BAL) is a leading upstream producer of crude palm oil (CPO) and palm kernel (PK) in Indonesia, managing 187k hectares of plantations in Central and West Kalimantan and Riau. With an average plantation age of 14 years (as of Sep 30, 2024), BAL benefits from strong productivity, high-quality plantations, and a strategic focus on maximizing yield. The company is well-positioned to leverage favorable industry fundamentals, where constrained supply and growing demand should support CPO prices. Additionally, BAL is gaining recognition as a dividend yield play, with a projected 12-month forward dividend yield of 5.8% (Refinitiv consensus). Recommendation: BUY. |
