REITs Tracker

• Mapletree Logistics Trust (MLT) announced that it has entered into an agreement for the divestment of 30 Woodlands Loop at a sale price of S$15.5m. The divestment is expected to be completed by May, and is expected to generate a net disposal gain of ~S$5.0m, which will be distributed to unitholders. We maintain BUY with an unchanged fair value of S$1.25 (25 Mar).

• Cache Logistics Trust (CACHE) has exercised the call option to acquire the ramp-up logistics warehouse known as Precise Two. CACHE also launched a private placement to raise gross proceeds of S$86.8m, of which ~66.0% of the gross proceeds is expected to be used to wholly fund the proposed acquisition. We revise our fair value to S$1.33 from S$1.34 after factoring in the new development. Maintain BUY (20 Mar).

• Ascendas REIT (A-REIT) announced the proposed acquisition of The Galen for a purchase consideration of S$126.0m. According to A-REIT, the asset is expected to generate a NPI yield of 6.8% and add 0.052 S cents to its DPU on an annualised basis. This is in line with our initial assumptions made on the transaction. Maintain HOLD with an unchanged fair value of S$2.60 (19 Mar).

RECENT DEVELOPMENTS

• Saizen REIT has secured a JPY1.9b (S$24.8m) loan from The Bank of Fukuoka. Proceeds will be largely deployed towards full repayment of the loan from the Tokyo Star Bank (22 Mar).

• CapitaRetail China Trust has established the Distribution Reinvestment Plan (21 Mar).

• Ho Bee said it is not ruling out launching a commercial REIT in the next two years (21 Mar).

• Saizen REIT has completed the acquisition of Cosmos Kokura Eki Mae for S$9.9m and sale of Mansion Lilac for S$0.7m (21 Mar)

• Prime Orchard Road average rents rose in 1Q13 after staying flat since 3Q11 (20 Mar).

• Suntec REIT intends to redeem its convertible bonds due 2013 upon maturity. As at 20 Mar, S$216.3m in aggregate principal amount of the bonds remains outstanding (20 Mar).

• Cambridge Industrial Trust has completed the acquisition of 3 Tuas South Ave 4 (19 Mar).