Asia Pacific Equity Research | Singapore

WEEKLY S-REITS TRACKER

Kevin Tan (65) 6531 9810 [email protected]

22 Apr 2013

KEY TAKEAWAYS

Weekly top gainers (%) Frasers Centrepoint Trust Keppel REIT First REIT Weekly top losers (%) CapitaRetail China Trust Ascendas REIT Lippo Malls Indo Retail -5.1 -2.2 -1.9 +6.5 +5.0 +4.6

CapitaCommercial Trust (CCT) reported 1Q13 DPU of 1.96 S cents, up 3.2% YoY. We see this to be in line with expectations. We maintain BUY with unchanged fair value of S$1.80 (22 Apr). CapitaMall Trust (CMT) announced a 7.0% YoY growth in 1Q13 DPU to 2.46 S cents, slightly ahead of our expectations. We maintain BUY with a higher fair value of S$2.43 on CMT (22 Apr). CapitaRetail China Trusts (CRCT) 1Q13 DPU fell 4.1% YoY to 2.31 S cents due to dilution from private placement in Oct 2012. Maintain HOLD with higher fair value of S$1.76 (22 Apr). Mapletree Logistics Trusts (MLT) FY13 DPU increased by 2.5% to 6.86 S cents, in line with our full-year DPU forecasts. Maintain HOLD rating and S$1.34 fair value on MLT (18 Apr). Frasers Centrepoint Trusts (FCT) 1HFY13 DPU climbed 8.5% to reach 5.1 S cents, in line with expectations. Maintain HOLD and S$2.13 fair value on FCT (18 Apr). Ascendas REITs (A-REIT) FY13 DPU totalled 13.74 S cents, up 1.3%. This is somewhat below our full-year DPU projection. Maintain HOLD with a higher fair value of S$2.63 (16 Apr). First REITs (FREIT) sponsor, Lippo Karawaci, is reported to be seeking an IPO of its Siloam Hospitals healthcare division. We do not foresee any major impact to FREITs prospects due to this news. Maintain HOLD and S$1.31 fair value on FREIT (16 Apr).

Weekly sector performance (%) Healthcare Office Hospitality Retail Industrial Residential Overall +2.1 +1.9 +1.4 +1.0 +0.3 0.0 +1.1

Secto r Index Level 900 800 700 600 500 400 04/1 2 07/1 2 1 0/1 2

M arket Index Level 3500 3300 31 00 2900 2700 2500 1 2/1 2 03/1 3

RECENT DEVELOPMENTS
Saizen REIT has proposed to acquire residential property, AS Residence Hakataekiminami, for S$7.6m (19 Apr). Cambridge Industrial Trust announced 1Q13 DPU of 1.234 S cents, up 5.4% YoY (18 Apr). Sabana REIT 1Q13 DPU rose 6.6% YoY to 2.41 S cents (18 Apr). AIMS AMP Capital Industrial REIT reported 4QFY13 DPU of 3.14 S cents, up 16.3% YoY. It also raised S$110m through a private placement of 63.5m units at S$1.60 apiece (17 Apr). Far East Hospitality Trust has proposed to acquire Rendezvous Grand Hotel Singapore and Gallery for S$264.3m (15 Apr). Keppel REIT 1Q13 DPU rose 3.7% YoY to 1.97 S cents (15 Apr).

FSTREI Index

FSSTI Index

The FTSE ST REIT Index gained by 0.9% WoW, while STI was flat over the same period. Source: Bloomberg, OIR NOTE: The calculation of the % gains/losses is based on last Fridays closing prices and the preceding weeks Friday closing prices.

Sources: Reuters, Bloomberg, News agencies

Please refer to important disclosures at the back of this document.

MICA (P) 039/06/2012

OCBC Investment Research Weekly S-REITs Tracker Exhibit 1: Peer comparison

Singapore REITs
Price ($) OFFICE (4) CapitaCommercial Trust Frasers Commercial Trust Keppel REIT Suntec REIT RETAIL (8) CapitaMall Trust CapitaRetail China Trust Fortune REIT Frasers Centrepoint Trust Lippo Malls Indo Retail Trust Mapletree Commercial Trust Mapletree Greater China Com Starhill Global REIT INDUSTRIAL (7) AIMS AMP Capital Ind REIT Ascendas REIT Cache Logistics Trust Cambridge Industrial Trust Mapletree Industrial Trust Mapletree Logistics Trust Sabana REIT HOSPITALITY (3) Ascott Residence Trust CDL Hospitality Trusts Far East Hospitality Trust HEALTHCARE (2) First REIT ParkwayLife REIT RESIDENTIAL (1) Saizen REIT SGD SGD SGD SGD 1.660 1.485 1.480 2.000 Total: 2.260 1.755 7.360 2.290 0.515 1.405 1.075 0.930 Total: 1.695 2.720 1.400 0.850 1.570 1.310 1.370 Total: 1.450 2.090 1.170 Total: 1.355 2.650 Total: 0.205 Total: Mkt Cap ($ m) 4,722.8 972.5 3,961.2 4,504.7 14,161.3 7,813.0 1,315.4 12,529.8 1,886.5 1,130.1 2,905.2 2,861.3 1,807.0 21,715.8 761.7 6,525.1 1,082.7 1,040.3 2,577.1 3,185.9 878.9 16,051.8 1,826.7 2,027.4 1,880.1 5,734.2 902.6 1,603.3 2,505.9 290.8 290.8 60,459.8 Float (%) 64.2 72.6 28.5 93.7 FYE (mth) Dec Sep Dec Dec DPU (freq) Semi-Anl Quarter Quarter Quarter Curr DPU (cents) 8.10 7.50 7.90 9.10 Fwd DPU (cents) 8.10 8.50 8.00 9.60 Average: 10.90 10.00 37.20 11.20 3.60 6.70 5.69 5.00 Average: 12.00 15.20 9.00 5.60 9.20 7.20 9.40 Average: 9.10 12.10 6.50 Average: 8.50 11.20 Average: 1.24 Average: AVERAGE: Curr Yield (%) 4.9 5.1 5.3 4.6 5.0 4.5 5.5 4.8 4.8 6.6 4.4 4.9 5.3 5.1 6.5 5.3 6.3 6.1 5.8 5.3 7.0 6.1 6.1 5.7 5.2 5.7 5.7 4.2 4.9 6.0 6.0 5.4 Fwd Yield (%) 4.9 5.7 5.4 4.8 5.2 4.8 5.7 5.1 4.9 7.0 4.8 5.3 5.4 5.4 7.1 5.6 6.4 6.6 5.9 5.5 6.9 6.3 6.3 5.8 5.6 5.9 6.3 4.2 5.2 6.0 6.0 5.7 YTD Return (%) -1.5 12.5 14.3 19.4 11.2 6.1 6.7 15.5 14.5 5.1 15.6 N.A. 18.5 11.7 13.4 14.8 12.9 25.9 15.4 14.4 20.2 16.7 6.6 11.2 16.4 11.4 27.8 23.3 25.5 13.3 13.3 14.3 D/A (%) 30.4 29.2 43.3 36.7 34.9 35.2 25.4 23.4 30.5 24.5 35.3 43.0 30.3 30.9 34.0 28.3 31.7 35.3 37.1 34.1 37.7 34.0 40.1 24.9 29.2 31.4 25.7 32.9 29.3 32.3 32.3 32.4 P/B (x) 1.01 0.98 1.13 0.96 1.02 1.36 1.32 0.83 1.49 0.92 1.33 1.18 1.06 1.19 1.14 1.40 1.46 1.30 1.55 1.43 1.26 1.36 1.07 1.29 1.21 1.19 1.64 1.69 1.66 0.87 0.87 1.23

SGD SGD HKD SGD SGD SGD SGD SGD

59.2 60.2 66.0 58.9 51.8 60.8 51.5 70.5

Dec Dec Dec Sep Dec Mar Mar Dec

Quarter Semi-Anl Semi-Anl Quarter Quarter Quarter Semi-Anl Quarter

10.20 9.60 35.30 11.00 3.40 6.20 5.24 4.90

SGD SGD SGD SGD SGD SGD SGD

92.4 78.6 88.3 94.7 69.5 58.8 87.5

Mar Mar Dec Dec Mar Mar Dec

Quarter Quarter Quarter Quarter Quarter Quarter Quarter

11.00 14.50 8.80 5.20 9.10 7.00 9.60

SGD SGD SGD

50.5 64.7 37.2

Dec Dec Dec

Semi-Anl Semi-Anl Quarter

8.80 11.90 6.10

SGD SGD

70.5 57.3

Dec Dec

Quarter Quarter

7.70 11.00

SGD

93.7

Jun

Semi-Anl

1.24

25 S-REITS

GRAND TOTAL:

Business Trusts
REAL ESTATE (5) Ascendas Hospitality Trust Ascendas India Trust Forterra Trust Indiabulls Properties Invt Perennial China Retail INFRASTRUCTURE (2) CitySpring Infra Trust K-Green Trust PORT AND SHIPPING (3) First Ship Lease Trust Hutchison Port Holdings Rickmers Maritime HEALTHCARE (1) Religare Health Trust SGD SGD SGD SGD SGD 1.010 0.840 1.785 0.105 0.610 Total: 0.495 1.040 Total: 0.124 0.810 0.340 Total: 0.915 Total: 812.4 766.7 452.7 388.2 696.2 3,116.2 751.9 655.0 1,406.8 81.2 7,056.0 144.0 7,281.2 721.1 721.1 12,525.4 63.2 72.6 34.6 16.2 46.3 Mar Mar Dec Mar Dec Semi-Anl Semi-Anl Irreg Irreg Semi-Anl 5.80 4.90 2.50 N.A. 3.90 7.30 5.40 5.00 N.A. 3.30 Average: 3.30 7.80 Average: 0.00 6.03 2.23 Average: 7.70 Average: AVERAGE: 5.7 5.8 1.4 N.A. 6.4 4.8 6.7 7.5 7.1 0.0 7.2 8.0 5.1 6.8 6.8 5.6 7.2 6.4 2.8 N.A. 5.4 5.5 6.7 7.5 7.1 0.0 7.4 6.6 4.7 8.4 8.4 5.8 7.4 12.0 21.4 -3.7 8.0 9.0 12.5 1.0 6.7 -2.4 2.5 -2.9 -0.9 3.4 3.4 5.4 35.8 21.0 34.7 23.7 19.9 27.0 66.7 N.A. 66.7 55.5 21.6 56.2 44.4 6.1 6.1 34.1 1.29 1.37 0.40 0.26 0.87 0.84 2.23 1.03 1.63 0.21 0.82 0.27 0.43 1.06 1.06 0.89

SGD SGD

62.3 50.7

Mar Dec

Quarter Semi-Anl

3.30 7.80

SGD USD SGD

75.7 58.0 66.6

Dec Dec Dec

Quarter Semi-Anl Quarter

0.00 5.86 2.72

SGD

59.1

Mar

Semi-Anl

6.20

11 BUSINESS TRUSTS

GRAND TOTAL:

Source: Companies, Bloomberg, Yahoo Finance, OIR estimates (22 Apr 2013) NOTES: 1) SGD/JPY = 0.0124; SGD/USD = 1.2377; SGD/HKD = 0.1594; USD/HKD = 0.1288 2) Curr DPU and yield refer to the respective Bloomberg consensus distribution and yield forecasts for current financial year 3) Fwd DPU and yield refer to the respective Bloomberg consensus distribution and yield forecasts for next financial year 4) D/A (Debt-to-Asset) and P/B (Price-to-Book) are based on figures reported in last available financial results 5) Mapletree Greater China Commercial Trust's DPU and other financial figures are based on projections in Prospectus

Exhibit 2: OIR coverage

Ascendas REIT Ascott Residence Trust Cache Logistics Trust CapitaCommercial Trust CapitaMall Trust CapitaRetail China Trust CDL Hospitality Trusts Far East Hospitality Trust First REIT Fortune REIT Frasers Centrepoint Trust Frasers Commercial Trust Lippo Malls Indo Retail Trust Mapletree Logistics Trust Starhill Global REIT Suntec REIT BBRG Ticker AREIT SP ART SP CACHE SP CCT SP CT SP CRCT SP CDREIT SP FEHT SP FIRT SP FRT SP FCT SP FCOT SP LMRT SP MLT SP SGREIT SP SUN SP SGD SGD SGD SGD SGD SGD SGD SGD SGD HKD SGD SGD SGD SGD SGD SGD Price 2.720 1.450 1.400 1.660 2.260 1.755 2.090 1.170 1.355 7.360 2.290 1.485 0.515 1.310 0.930 2.000 Fair Value 2.63 1.36 1.33 1.80 2.43 1.76 2.11 1.05 1.31 7.28 2.13 1.52 0.52 1.34 0.98 1.94 Rating HOLD HOLD BUY BUY BUY HOLD HOLD HOLD HOLD BUY HOLD BUY HOLD HOLD BUY BUY Analyst Kevin Tan Sarah Ong Kevin Tan Eli Lee Kevin Tan Sarah Ong Sarah Ong Sarah Ong Andy Wong Sarah Ong Kevin Tan Kevin Tan Sarah Ong Kevin Tan Kevin Tan Kevin Tan

Source: Bloomberg, OIR estimates (22 Apr 2013)

OCBC Investment Research Weekly S-REITs Tracker Exhibit 3: Distribution details

Ascendas REIT # Keppel REIT ^ Mapletree Logistics Trust Cambridge Industrial Trust Sabana REIT Frasers Centrepoint Trust AIMS AMP Capital Ind REIT CapitaMall Trust DPU (S cents) 0.370 0.620 1.730 1.234 2.410 2.700 3.140 2.460 Date announced 15 Apr 2013 15 Apr 2013 17 Apr 2013 18 Apr 2013 18 Apr 2013 17 Apr 2013 16 Apr 2013 19 Apr 2013 Ex-date 19 Apr 2013 19 Apr 2013 23 Apr 2013 24 Apr 2013 24 Apr 2013 25 Apr 2013 26 Apr 2013 25 Apr 2013 Record date 23 Apr 2013 23 Apr 2013 25 Apr 2013 26 Apr 2013 26 Apr 2013 29 Apr 2013 30 Apr 2013 29 Apr 2013 Pay date 27 May 2013 28 May 2013 30 May 2013 31 May 2013 30 May 2013 30 May 2013 18 Jun 2013 30 May 2013 Annualised yield (%) 4.6 5.4 5.4 5.9 7.1 4.8 7.5 4.4

Source: Companies, Bloomberg, OIR estimates (22 Apr 2013) NOTES: 1) # Annualised yield includes advanced distribution of 2.69 S cents for period from 1 Jan to 18 Mar 2013. 2) ^ Annualised yield includes advanced distribution of 1.35 S cents for period from 1 Jan to 3 Mar 2013.

Exhibit 4: Results release dates

Mapletree Commercial Trust First REIT Mapletree Industrial Trust Cache Logistics Trust Suntec REIT Ascott Residence Trust CDL Hospitality Trusts Starhill Global REIT Frasers Commercial Trust Lippo Malls Indo Retail Trust Parkway Life REIT Source: Companies Financial quarter 4QFY13 1QFY13 4QFY13 1QFY13 1QFY13 1QFY13 1QFY13 1QFY13 2QFY13 1QFY13 1QFY13 Release date 22 Apr 2013 23 Apr 2013 23 Apr 2013 24 Apr 2013 25 Apr 2013 26 Apr 2013 26 Apr 2013 26 Apr 2013 29 Apr 2013 02 May 2013 09 May 2013 Remarks After market close Not disclosed After market close After market close After market close Before market open Not disclosed After market close Before market open After market close Before market open

OCBC Investment Research Weekly S-REITs Tracker

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RATINGS AND RECOMMENDATIONS: - OCBC Investment Researchs (OIR) technical comments and recommendations are short-term and trading oriented. - OIRs fundamental views and ratings (Buy, Hold, Sell) are medium-term calls within a 12-month investment horizon. - As a guide, OIRs BUY rating indicates a total return in excess of 10% given the current price; a HOLD trading indicates total returns within +/-10% range; a SELL rating indicates total returns less than -10%. - For companies with less than S$150m market capitalization, OIRs BUY rating indicates a total return in excess of 30%; a HOLD trading indicates total returns within a +/-30% range; a SELL rating indicates total returns less than -30%.

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Important disclosures