Stock Name: SuntecReit
Company Name: SUNTEC REAL ESTATE INV TRUST
DMG & Partners Securities in a July 22 research report says: "Suntec reported 2Q11 DPU of 2.532 cents (+6.0% q-o-q; +0.2% y-o-y), which represents 26% of our FY2011 estimate. Net property income declined by 1.1% y-o-y (+0.5% q-o-q) mainly due to lower rental income from retail space.
"Suntec City Mall's average passing rent fell for the 9th quarter out of the last 11 quarters due to negative rental reversion. Meanwhile, total income from JV rose 132% y-o-y to $26.9 million (+14.6% q-o-q) on the back of strong contribution from MBFC, marginally offset by drop in ORQ contribution due to decline in income support.
"Our slightly higher target price of $1.72 was raised due to half-year rollover of our DDM valuation, marginally offset by higher COE (prev 8.4%) and lower terminal growth rate (prev 2.9%). MAINTAIN BUY."
Company Name: SUNTEC REAL ESTATE INV TRUST
| Research House: DMG | Price Call: BUY | Target Price: 1.72 |
DMG & Partners Securities in a July 22 research report says: "Suntec reported 2Q11 DPU of 2.532 cents (+6.0% q-o-q; +0.2% y-o-y), which represents 26% of our FY2011 estimate. Net property income declined by 1.1% y-o-y (+0.5% q-o-q) mainly due to lower rental income from retail space.
"Suntec City Mall's average passing rent fell for the 9th quarter out of the last 11 quarters due to negative rental reversion. Meanwhile, total income from JV rose 132% y-o-y to $26.9 million (+14.6% q-o-q) on the back of strong contribution from MBFC, marginally offset by drop in ORQ contribution due to decline in income support.
"Our slightly higher target price of $1.72 was raised due to half-year rollover of our DDM valuation, marginally offset by higher COE (prev 8.4%) and lower terminal growth rate (prev 2.9%). MAINTAIN BUY."
No comments:
Post a Comment