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OCBC |
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Marco Polo Marine (MPM SP) Coming Back Better And Stronger
Survived the worst; turnaround imminent. We met up with management of Marco Polo Marine and discovered that this net cash company, which survived the oil price crash years ago, may be on the verge of a comeback to profitability. It returned to EBITDA positive in FY19, after a debt restructuring exercise in Feb 2018, resulting in a clean balance sheet. A continued pick-up in the ship chartering and ship repair/building businesses should give it a good chance to see a profit this year.
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CACHE LOGISTICS TRUST | HOLD IMPROVEMENT IN RENTAL REVERSIONS
- FY19 DPU fell 6.6% YoY - Potential venture into APAC - Higher FV estimate of S$0.74
Cache Logistics Trust’s (CACHE) 4Q19 gross revenue dropped 12.2% YoY to S$27.2m while NPI dropped 12.4% YoY to S$20.5m. 4Q19 and FY19 DPU declined 8.4% YoY and 6.6% YoY to 1.376 S cents and 5.523 S cents respectively, which we consider to be in-line with our expectations as it came up to 25%/101% of our full-year forecast. As at 31 Dec 2019, CACHE’s committed portfolio occupancy stood at 95.3%. Rental reversion in 4QFY19 was strong at 9.1%, thanks to the 202,100 square feet of new leases secured in 4Q. Full year rental reversion, however, was muted at -0.3%. Looking ahead, we expect industrial rents to remain soft in Singapore amid economic headwinds. On 12 Dec 2019, ARA announced a venture with LOGOS to establish a best-in-class logistics real estate development and investment management partnership in the Asia Pacific region (APAC). We believe CACHE’s strategic partnership with LOGOS could bring more acquisition opportunities in the future. Rolling forward our estimates, our fair value estimate increases slightly from S$0.72 to S$0.74. Maintain HOLD. |
| CGS CIMB | PHILLIP SECURITIES |
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Mapletree Logistics Trust Buying continues in Japan and South Korea
■ MLT is acquiring Kobe Logistics Centre, Japan and DC Deokpyung, Korea for S$272.5m/S$41.4m at implied stabilised yields of c.4.0%/6.4% respectively. ■ Both acquisitions are debt-funded and will be accretive to DPU. ■ We reiterate Hold at a TP of S$1.59 after accounting for the two acquisitions.
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Frasers Centrepoint Trust Positive rental reversions kicking in
SINGAPORE | REAL ESTATE (REIT) | 1Q20 RESULTS 1Q20 NPI and DPU in line with our forecast. Positive rental reversions of 5% for 1Q20. Revenue growth supported by continued positive rental reversions and improved occupancy Maintain ACCUMULATE with an unchanged TP of S$3.11. FCT is a beneficiary of necessity spending and the intensification of Woodlands and Punggol.
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