Tag Archives: Funds

Asian Reits survive H1, but challenges remain: CBRE

Posted on 27 Aug 2009 | Comments Off on Asian Reits survive H1, but challenges remain: CBRE

Acquisition, IPO activities unlikely to recover to pre-slump levels in near future

Most Asian real estate investment trusts (Reits) have survived the economic storm in the first half of the year, but challenges – from reducing gearing to growing distributions – still lie ahead, says CB Richard Ellis (CBRE).

The market capitalisation of Asian Reits rose 14.3 per cent in H1 2009, according to the property consultancy in a report yesterday.

In Singapore, the FTSE Reit Index has jumped more than 35 per cent from January, gaining 7.34 points yesterday to close at 503.39. ‘General improvement in the credit market, government support for the re- financing of J-Reits (Japan Reits) and successful rights issues for S-Reits (Singapore Reits) have substantially enhanced Reits around the region,’ says CBRE Research Asia executive director Andrew Ness.

Many large-cap Asian Reits managed to grow their rental income recently, CBRE notes. In Singapore, several S-Reits have also met or Continue reading →

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Anticipating, accelerating, accentuating

Posted on 22 Aug 2009 | Comments Off on Anticipating, accelerating, accentuating

CapitaCommercial Trust shares its ‘triple-A strategy’ for riding through challenging times

FOR a sector that looked extremely vulnerable during the worst of the credit crisis, most real estate investment trusts (Reits) in Singapore managed to turn in steady results in the second quarter of this year.

CapitaCommercial Trust (CCT) was one that met or exceeded analysts’ expectations. Riding on higher rental income and better operating margins, its Q2 distributable income and distribution per unit (DPU) each rose around 33 per cent from a year ago.

But are the skies clear for Reits? Analysts have flagged other challenges to maintaining distributions in a subdued economy – rents are likely to keep sliding and acquisitions may still be hard to carry out.

CCT adopts a ‘triple-A strategy’ in such times, says Lynette Leong, CEO of trust manager CapitaCommercial Trust Management. ‘We anticipate, Continue reading →

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