CapitaRetail China Trust Reports 13.6-per cent NPI Growth in 1Q2011
CapitaRetail China Trust (CRCT) Friday reported net property income (NPI) of RMB106.6 million (S$20.4 million) for the first quarter of 2011, an increase of 13.6 per cent over the same period last year.
Income available for distribution was S$13.5 million, up 1.0 per cent year-on-year. This translates into distribution per unit (DPU) of S$0.0215 in 1Q2011, up 0.5 per cent from last year.
Based on an annualised DPU of S$0.0872 and CRCT’s closing price of S$1.27 per unit on April 14, the annualised distribution yield is 6.9 per cent for 1Q2011.
“Retail sales in China grew 15.8 per cent year-on-year in the first two months of 2011. There is an increasingly positive outlook for retail sales in China as the Chinese government recently announced that boosting domestic consumption is one of its key strategies in its 12th five-year plan. These measures to stimulate domestic demand augur well for CRCT, as our malls are well placed to tap into China’s consumption growth,” said Victor Liew, Chairman of CRCT.
CapitaRetail China Trust closed on Friday at S$1.260.
TCT Completes Acquisition of Mall in China’s Qingdao
Treasury China Trust (TCT) has completed its acquisition of a 55-per cent interest in Central Avenue Mall, in Qingdao, China.
TCT owns and manages approximately RMB11.0 billion (S$2.1 billion) worth of assets located in Shanghai, Beijing and now Qingdao.
Central Avenue Mall, located in the heart of the new Qingdao central business district, includes an existing 44,000-square metre retail mall that opened for business in 2010 and is currently 98-per cent leased. Recently, TCT acquired an adjoining 335,000-square metre site to be developed into an extension of the retail mall.
“This acquisition delivers an increase in total assets of RMB568.0 million over the purchase price, as determined by independent valuation. It also provides significant capacity for substantial growth in net property income based on a very low entry price of RMB2,100 per square metre for the development component, which over its three- to five-year development cycle will produce revenue on cost of more than 15 per cent,” said TCT’s CEO Richard David.
The acquisition was settled with a payment of S$20.23 million and an issuance of five-year convertible bonds for S$6.93 million carrying an annual coupon of 6 per cent per annum, with a conversion price of S$2.80 per unit.
Funds for the acquisition were sourced from the over-subscribed equity placement TCT completed in December 2010, which raised S$26.7 million, and the recent convertible bond transaction that yielded S$59.7 million.
Treasury China Trust closed on Friday at S$1.920.
M1’s 1Q2011 Net Profit Up 8.2 Per cent to S$42.5 million
M1 Limited Friday reported that its net profit after tax increased 8.2 per cent to S$42.5 million for the first quarter ending March 31.
The telco posted operating revenue of S$257.6 million during the same period, 3.5 per cent higher year-on-year due to higher service revenue and handset sales. Service revenue benefited from growth in the mobile customer base, and higher contribution from fixed services, M1 said.
Revenue from non-voice services rose to 34.7 per cent of total service revenue in the first quarter, driven by growth in the mobile broadband and smartphone customer base.
M1’s total customer base stood at 1.934 million as at end-March. For the quarter, M1 added 23,000 customers, of which 14,000 were postpaid customers and 9,000 were prepaid customers.
Monthly postpaid churn in the latest quarter improved to 1.2 per cent, from 1.4 per cent in the previous year.
“For 2011, we see exciting opportunities in the fixed segment, driven by enhanced experience on the new fibre network and progressive expansion of its coverage. Growth in the mobile segment will be driven by increased adoption of tablets and other mobile broadband devices. Based on the current outlook and barring any unforeseen circumstances, net profit after tax for 2011 is likely to improve, compared to 2010,” said Karen Kooi, CEO of M1.
M1 Limited closed on Friday at S$2.410.
OUE Buys Crowne Plaza Changi Airport Hotel Owner for S$250 million
Overseas Union Enterprise Limited (OUE) Friday announced that it has acquired 100 per cent of LC Airport Hotel Pte Ltd, owner of the 320-room Crowne Plaza Changi Airport Hotel, for S$250 million.
OUE said it has also acquired the adjacent plot of land for S$43 million. The company is considering a proposal to develop a further 200 rooms for S$37 million on the site.
If completed, the entire complex would offer a total inventory of 520 rooms in the Changi Airport area, putting OUE’s investment at about S$330 million or S$635,000 per key.
The hotel acquisition increases OUE’s Singapore hotel room count by 31.98 per cent to 2,146 rooms from 1,626 rooms.
OUE already manages and operates two five-star hotels in Singapore ‒ Mandarin Orchard Singapore and Marina Mandarin Singapore ‒ under its Meritus Hotels and Resorts hotel arm.
Overseas Union Enterprise Limited closed on Friday at S$3.160.
CapitaLand Acquires 40 Per cent of Surbana to Accelerate Value Housing Business
CapitaLand Limited, through its wholly-owned subsidiary, CL Pinnacle Pte Ltd, Friday announced that it has signed a share purchase agreement with Temasek Holdings Pte Ltd to acquire a 40-per cent stake in Surbana Corporation Pte Ltd for S$360 million.
Surbana, a wholly-owned subsidiary of Temasek, is a township developer with four developments located in Shenyang, Xi’an, Chengdu and Wuxi in China.
CapitaLand said the purchase is part of its objective to complement and accelerate the growth of its value housing business initiative by leveraging on Surbana’s expertise, particularly with large-scale mass market residential developments.
Last year, CapitaLand launched a new business unit, CapitaValue Homes, to grow its residential business in the value housing sector in Asia, with a focus on China and Vietnam.
“Combined with Surbana’s townships, CapitaLand will have a total residential pipeline of more than 64,000 units in China. Surbana’s townships are located mainly in Tier 2 cities, where we see tremendous growth opportunities and potential supported by rapid urbanisation and (a) rising level of income,” said Liew Mun Leong, President and CEO of CapitaLand.
The acquisition will be funded from CapitaLand’s internal source of funds and available cash.
Surbana will become an associate of CapitaLand after the acquisition.
CapitaLand Limited closed on Friday at S$3.410.
Singapore Airlines to Increase Fuel Surcharge
Singapore Airlines Limited Friday announced it will increase its fuel surcharge for tickets issued on or after April 21 as jet fuel prices have risen more than 30 per cent since the beginning of the year.
The airline said the increase in fuel surcharge will be between US$4 and US$32 per sector, depending on the distance and class of travel. It will apply to Singapore Airlines and SilkAir flights.
The price of jet fuel is now more than US$138 (S$172) per barrel, the highest level in two years, the airline said in a statement.
Singapore Airlines Limited closed on Friday at S$
DBS on Track for 50 Outlets in China by 2013
DBS Group Holdings Limited, Southeast Asia’s largest bank, Friday announced that it is on track for 50 outlets in China by 2013, adding it is scheduled to open at least eight new branches and sub-branches in 2011.
The new outlets will be established mainly in Shanghai, Beijing and Guangzhou. In the first four months of 2011, three DBS China outlets were opened in Hangzhou, Shanghai and Beijing, bringing DBS’s network in China to nine branches and 10 sub-branches.
This year, DBS also plans to double its current workforce of over 1,000 employees in China, with hires primarily in the areas of consumer and institutional banking. The bank added that it will also be offering cross-selling of Treasury & Markets and Global Transaction Services products in China this year.
“DBS China had a strong year in 2010, and this year, we will continue to execute according to strategy, strengthening our processes, products and services, and people / talent development. DBS is committed to the China market and targets to expand our branch footprint to serve our customers (better),” said DBS China CEO Melvin Teo.
DBS Group Holdings Limited closed on Friday at S$14.660.
