S & P Results Review & Earnings Outlook
• Hektar REIT’s 3Q10 results were within expectations. Hektar REIT posted a 1.5% YoY increase in net profit to MYR9.7 mln on the back of a 0.5% YoY rise in turnover to MYR22.7 mln. Hektar REIT has
recommended a third quarter dividend of 2.5 sen (vs. 2.4 sen in 3Q09).
• Overall, on a quarterly basis, portfolio average occupancy rate has improved slightly to 95.5% from 95.2% in 2Q10. Wetex Parade in Muar, Johor posted a higher occupancy rate of 94.4% from 92.2% in 2Q10 and 91.2% in 1Q10 respectively. Meanwhile, Subang Parade’s occupancy was largely unchanged at 94.8% vs. 94.6% in 2Q10. The drop in occupancy to 94.6% in 2Q10 from 100% in 1Q10 was due mainly to losing a couple tenants to its new neighboring shopping mall.
Mahkota Parade (Melaka)’s occupancy edged down slightly to 96.7% from 96.9% in 2Q10.
• Hektar REIT experienced a rental reversion of -1% in 3Q10, due mainly to a -4% rental reversion in Subang Parade, which in turn was caused by new competitor in the area. Nevertheless, Wetex Parade
and Mahkota Parade experienced positive 18% and 1% in rental reversions. Both Wetex Parade and Mahkota Parade will add new retail zones by early 2011 while Subang Parade will commence its new cinema project by mid-2011.
Recommendation & Investment Risks
• We maintain our Buy recommendation but raise our 12-month target price to MYR1.45 from MYR1.40. Hektar REIT’s unit price is well supported by its high dividend yield.
• Our 12-month target price of MYR1.45 is derived by applying a 5% (9% previously) discount to our DDM valuation. We lower our discount to reflect the improvement in the economy and also the low interest rate
environment. The primary assumptions behind our DDM valuation are a cost of equity of 8.3%-9.5% and DPU growth of 0%-3%.
• At the current level, Hektar REIT offers an attractive 2010 dividend yield of 8.0%. Moreover, suburban neighborhood retail properties normally enjoy more stable occupancy and rental income than other
types of commercial properties such as offices and urban retail properties. Going forward, Hektar REIT is looking to expand its investment portfolio, and also to enhance its existing properties through refurbishment or building extension.
• Risks to our recommendation and target price are: (i) a sharp and prolonged economic slowdown in Malaysia; and (ii) an unexpected rise in interest rates, which will have a negative impact on the occupancy,
rental income and market value of retail properties.
历史不应该偏颇!
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你不敢想象有些国家在历史教育课本上,为了迷惑人民什么都敢寫,
1) 韓国在历史课本述说有五至八千年的文化,原来他们把神话故事的传说当是祖先,大家可从网上瞭解一下。
2) 日本把二战期间侵略的历史也从未在他们的历史書上出现过,还把战犯供起来参拜。
以此类推,中国把神话故事的人物搬出来,什么万年天帝、千年老妖、道尊、...
10 minutes ago
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