CIMB | UOB KAUHIAN |
REIT Let’s go for a bus ride!
■ We brought a group of local investors to three distinct business park clusters: i) Singapore Science Park, ii) one-north and iii) Changi Business Park. ■ Given easing supply and demand from science, technology and media sectors, we believe that business parks would be the first to post recovery gains this year. ■ A flattening/declining yield curve and abating supply pressures in 2018 underpin our Overweight stance on the sector. Risks include rate hikes or economic recession. ■ We believe that the positive view on business park recovery and further acquisitive DPU growth have been largely priced in for AREIT. ■ Instead, our preferred picks are FLT, MAGIC and MCT.
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CapitaLand Commercial Trust (CCT SP) Divestment Of One George Street
CCT has completed the divestment of a 50% stake in One George Street for $591.6m ($2,650psf) to insurer FWD Group. The divestment will facilitate the redevelopment of Golden Shoe Carpark. Management is still evaluating whether distribution from One George Street sales proceeds will be partly used to mitigate the income shortfall. We reduce our 2017-19F DPU by 1-3.1% after factoring in the loss of income from One George Street. Maintain BUY with a lower target price of S$1.90 (previously S$1.94).
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OCBC | |
Singapore Airlines: Integrating LCC operations
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Check out our compilation of Target Prices