Tag Archives: REITS

City Developments quarterly profit falls 12% to $137.6m

City Developments, Singapore’s second-largest developer, said first-quarter profit fell 12% after a one-time gain wasn’t repeated.

Net income slid to $137.6 million in the three months ended March 31, from $156.8 million a year earlier, it said in Singapore exchange statement today. Sales fell 9.8% to $763.5 million.

“The main reason for the drop in revenue was due to the Tagore Avenue warehouse that was disposed-off in the first quarter of 2012,” the company said in the statement.

Singapore’s private residential property price index rose 0.6% in the three months ended March 31, the slowest pace in three quarters after government curbs. The latest measures in January, the seventh round of curbs in about four years, included an increase in the stamp duties for homebuyers by 5 percentaage points to 7 percentage points.

The company’s shares rose 0.9% to $11.60 today. The results were announced after the close of trade. The stock has declined 9.5% this year, the worst performer among 41 developers and REITs on the Singapore property index.

City Developments started marketing two new projects in the quarter, the 912-unit D’Nest condominium and Bartley Ridge, a 868-unit joint-venture development, the company said today. It had rented out 94% of the space in its office buildings as of March 31, compared with the national average occupancy of 90.8%, it said.

The developer, the biggest shareholder of Millennium & Copthorne Hotels Plc, said last month its South Korea unit bought a 1,564-square-meter (16,834-square-foot) site adjacent to its Millennium Seoul Hilton Hotel for a new hospitality property.

City Developments opened its 240-room W Singapore Sentosa Cove hotel on Oct. 20.

Source : Edge – 13 May 2013


Ascott Reit to acquire properties in China and Japan

Ascott Reit has agreed to buy three serviced residences in China and 11 rental residential properties in Japan for a total of S$287 million.

This will raise FY2012 distribution per unit by 2.9 per cent – from 8.76 cents to 9.01 cents.

Ascott Reit said the three serviced residences in China are located in Shanghai, Shenyang and Suzhou and they will continue to be managed by Ascott.

It will also be buying a portfolio of 11 rental properties (959 apartment units) across six cities in Japan, namely Fukuoka, Sapporo, Kyoto, Hiroshima, Saga and Sendai.

Besides adding 1,576 apartment units to its current 7,060 apartment units, the acquisitions will increase the trust’s asset size by 11 per cent to S$3.1 billion.

The trust added that its share of assets from Asia will increase from 59 per cent to 63 per cent of its total asset value.

The number of cities where Ascott Reit has its presence will also be increased from 25 to 32 cities.

It is also actively on the lookout for acquisition targets.

Chief executive officer of Ascott Residence Trust Management, Ronald Tay said: “Hopefully we will be able to make some acquisitions in the second half of the year. We continue to like Asia very much. So the key markets like Singapore China, and potentially India as well as a new market. For Europe, we will continue to look at Europe on an opportunistic basis. Markets that we like are in Europe include London, Paris and key gateway cities in Germany. “

The acquisitions will be funded partly by the S$150 million raised from Ascott Reit’s equity placement earlier this year and the balance will be funded by debts.

Source : Channel NewsAsia – 2 May 2013