Stock Name: Sp Land
Company Name: SINGAPORE LAND LIMITED
CIMB in a Mar 27 research report says: "2012 is likely to see further negative rental reversion for 25-30% of office leases up for renewal. This is offset by strong occupancies of >97% following relocation of tenants from the redevelopment of UIC Building (office completion in 2015).
"Management expressed more optimism on the retail and hospitality segments as rents, RevPARs and occupancies remain strong, buffering recurring income growth in FY2010/2011. We expect these two segments (23% of GAV) to continue to offset weaker office contributions.
"We raise our FY2013 EPS by 12% and trim FY2014 by 2% on development recognition and higher Chengdu ASPs. Factoring in narrower cap rates for office assets raises RNAV and target price of $6.12 (still at 45% discount to RNAV). MAINTAIN NEUTRAL."
Company Name: SINGAPORE LAND LIMITED
| Research House: CIMB | Price Call: HOLD | Target Price: 6.12 |
CIMB in a Mar 27 research report says: "2012 is likely to see further negative rental reversion for 25-30% of office leases up for renewal. This is offset by strong occupancies of >97% following relocation of tenants from the redevelopment of UIC Building (office completion in 2015).
"Management expressed more optimism on the retail and hospitality segments as rents, RevPARs and occupancies remain strong, buffering recurring income growth in FY2010/2011. We expect these two segments (23% of GAV) to continue to offset weaker office contributions.
"We raise our FY2013 EPS by 12% and trim FY2014 by 2% on development recognition and higher Chengdu ASPs. Factoring in narrower cap rates for office assets raises RNAV and target price of $6.12 (still at 45% discount to RNAV). MAINTAIN NEUTRAL."
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