10 things rich people know that you don’t - MarketWatch:
'via Blog this'
Wednesday, December 31, 2014
Tuesday, December 30, 2014
Local Reits register solid returns for 2014, News, News, AsiaOne Business News
Local Reits register solid returns for 2014, News, News, AsiaOne Business News:
Grace Leong
The Straits Times
Monday, Dec 29, 2014
2014 has been a relatively solid year for the local real estate investment trust (Reit) sector, although prospects of higher interest rates next year could result in more volatility in Reit unit prices.
The 28 Reits listed here have a total market value of $59.7 billion and averaged year-to-date total returns of 12.9 per cent.
Indicative dividend yields averaged 6.1 per cent, according to a report by SGX My Gateway on Wednesday. The Reits also have posted an average price gain of 6.3 per cent so far this year, the report said.
A year ago, the 25 Reits listed had a total market value of $50.5 billion, while indicative dividend yields averaged 6.1 per cent.
The FTSE ST Reits Index, which tracks 33 local trusts, has had total returns of nearly 16 per cent so far this year, outperforming the Straits Times Index's 7 per cent gain. This compares with a drop of 4.5 per cent a year ago.
Despite the US Federal Reserve's dovish stance on monetary policy at its meeting last week, a hike in the Fed Funds target rate is expected by the second quarter of next year. "This would likely influence the Singapore Government 10-year bond yield and Sibor to increase, and could result in volatility in the share prices of S-Reits," OCBC Investment Research noted in a report last week.
But most Reits have buffered up their balance sheets to keep gearing ratios at relatively comfortable levels, and have also put in place hedging strategies, OCBC said.
Trusts here have been tightening their belts on expectations that interest rates could rise over the next few years, which would have major repercussions as borrowing costs are a major component of their expenses.
While the brokerage has maintained a neutral call on the sector, it is overweight on office and retail Reits. It has buy calls on CapitaMall Trust, Frasers Centrepoint Trust and Starhill Global Reit.
Reits are popular among investors as they can offer higher yields than regular property stocks through tax-exempt dividends and a requirement to distribute at least 90 per cent of taxable net income to unitholders.
MayBank Kim Eng, which has a buy call on CapitaCommercial Trust (CCT), cited "23 per cent of pre-commitment leases signed to date for CapitaGreen, and GIC renewing leases at Capital Tower next year with significant rental reversion".
"GIC (CCT's top 10 tenant contributing 5 per cent of monthly gross rental income) will be renewing its leases at Capital Tower next year, with significant reversion, given its low base, according to management. CCT stands to benefit from higher office spot rents given its favourable lease expiry profile," the brokerage said.
It also said CCT's balance sheet remained strong, "with a low gearing of 28 per cent, and 80 per cent of borrowings are on fixed rates".
Its portfolio occupancy also remains strong at 99.4 per cent.
Meanwhile, OCBC downgraded its call on Suntec Reit to a "hold", saying it is expected to be "a beneficiary of the robust momentum in Singapore's prime office sector, although rental growth is likely to moderate from 2015".
"The momentum for prime office space in Singapore remains robust, as illustrated by the 3.3 per cent quarter-on-quarter and 14.7 per cent year-on-year increase in grade A rentals in third quarter 2014, based on data from CBRE.
"Notwithstanding this positive environment, we believe the pace of rental increase would moderate next year. Growth is expected to ease further in 2016, given the large pipeline of supply coming on stream," the brokerage said.
"The situation appears less sanguine for Suntec Reit's retail segment which, in our view, is underpinned by headwinds facing Singapore's retail sector. This has resulted in the relatively lacklustre committed occupancy rate of 60 per cent (as at Sept 30) for Suntec City Mall's Phase 3 development. We see downside risks to our full year 2015 gross revenue and distribution per unit forecasts if the situation remains sluggish," it said.
'via Blog this'
Grace Leong
The Straits Times
Monday, Dec 29, 2014
2014 has been a relatively solid year for the local real estate investment trust (Reit) sector, although prospects of higher interest rates next year could result in more volatility in Reit unit prices.
The 28 Reits listed here have a total market value of $59.7 billion and averaged year-to-date total returns of 12.9 per cent.
Indicative dividend yields averaged 6.1 per cent, according to a report by SGX My Gateway on Wednesday. The Reits also have posted an average price gain of 6.3 per cent so far this year, the report said.
A year ago, the 25 Reits listed had a total market value of $50.5 billion, while indicative dividend yields averaged 6.1 per cent.
The FTSE ST Reits Index, which tracks 33 local trusts, has had total returns of nearly 16 per cent so far this year, outperforming the Straits Times Index's 7 per cent gain. This compares with a drop of 4.5 per cent a year ago.
Despite the US Federal Reserve's dovish stance on monetary policy at its meeting last week, a hike in the Fed Funds target rate is expected by the second quarter of next year. "This would likely influence the Singapore Government 10-year bond yield and Sibor to increase, and could result in volatility in the share prices of S-Reits," OCBC Investment Research noted in a report last week.
But most Reits have buffered up their balance sheets to keep gearing ratios at relatively comfortable levels, and have also put in place hedging strategies, OCBC said.
Trusts here have been tightening their belts on expectations that interest rates could rise over the next few years, which would have major repercussions as borrowing costs are a major component of their expenses.
While the brokerage has maintained a neutral call on the sector, it is overweight on office and retail Reits. It has buy calls on CapitaMall Trust, Frasers Centrepoint Trust and Starhill Global Reit.
Reits are popular among investors as they can offer higher yields than regular property stocks through tax-exempt dividends and a requirement to distribute at least 90 per cent of taxable net income to unitholders.
MayBank Kim Eng, which has a buy call on CapitaCommercial Trust (CCT), cited "23 per cent of pre-commitment leases signed to date for CapitaGreen, and GIC renewing leases at Capital Tower next year with significant rental reversion".
"GIC (CCT's top 10 tenant contributing 5 per cent of monthly gross rental income) will be renewing its leases at Capital Tower next year, with significant reversion, given its low base, according to management. CCT stands to benefit from higher office spot rents given its favourable lease expiry profile," the brokerage said.
It also said CCT's balance sheet remained strong, "with a low gearing of 28 per cent, and 80 per cent of borrowings are on fixed rates".
Its portfolio occupancy also remains strong at 99.4 per cent.
Meanwhile, OCBC downgraded its call on Suntec Reit to a "hold", saying it is expected to be "a beneficiary of the robust momentum in Singapore's prime office sector, although rental growth is likely to moderate from 2015".
"The momentum for prime office space in Singapore remains robust, as illustrated by the 3.3 per cent quarter-on-quarter and 14.7 per cent year-on-year increase in grade A rentals in third quarter 2014, based on data from CBRE.
"Notwithstanding this positive environment, we believe the pace of rental increase would moderate next year. Growth is expected to ease further in 2016, given the large pipeline of supply coming on stream," the brokerage said.
"The situation appears less sanguine for Suntec Reit's retail segment which, in our view, is underpinned by headwinds facing Singapore's retail sector. This has resulted in the relatively lacklustre committed occupancy rate of 60 per cent (as at Sept 30) for Suntec City Mall's Phase 3 development. We see downside risks to our full year 2015 gross revenue and distribution per unit forecasts if the situation remains sluggish," it said.
'via Blog this'
Friday, November 28, 2014
Tuesday, November 18, 2014
Friday, November 14, 2014
Duracell deal is a typical Warren Buffett play — a bargain - MarketWatch
Duracell deal is a typical Warren Buffett play — a bargain - MarketWatch: "“This is part of Berkshire’s long-standing acquisition strategy,” said Cathy Seifert, an analyst at S&P Capital IQ. “It’s a business model that is understandable, it has recurring and predictable cash flow and earnings, [and] there’s an intact management team and a willing seller.”"
“Buffett is a value investor, and it is not the first time he has gone into an industry where the macro trends have been softening,” said Seifert. “He will go in, cut costs, tweak margins and amp up distribution.
'via Blog this'
“Buffett is a value investor, and it is not the first time he has gone into an industry where the macro trends have been softening,” said Seifert. “He will go in, cut costs, tweak margins and amp up distribution.
'via Blog this'
Thursday, November 13, 2014
Tuesday, November 11, 2014
Warren Buffett's 9 rules for running a business
Warren Buffett's 9 rules for running a business:
1. Keep calm in the face of volatility. Buffett writes that earnings gyrations "don't bother us in the least." After all, "Charlie and I would much rather earn a lumpy 15 percent over time than a smooth 12 percent."
2. Keep good company. Berkshire has never split its Class A shares. As a result, one share currently costs almost $214,000. That discouraged people from rapidly moving into and out of the stock, and that's exactly the way Buffett likes it. He wants shareholders who share his long-term view. All the way back in 1979, he wrote, "In large part, companies obtain the shareholder constituency that they seek and deserve. If they focus their thinking and communications on short-term results or short-term stock market consequences, they will, in large part, attract shareholders who focus on the same factors."
Read More Advice from Buffett's 30-year-old right-hand woman
3. Keep your focus. In that same letter, Buffett warns that even a great company can see its "value stagnate in the presence of hubris or of boredom that caused the attention of managers to wander." The result: a "sidetracked" leadership that "neglects its wonderful base business while purchasing other businesses that are so-so or worse." In this area, Buffett argues that "inactivity strikes us as intelligent behavior." In 1982, a year that saw a number of corporate deals, Buffett thought that in many of them, "managerial intellect wilted in competition with managerial adrenaline. The thrill of the chase blinded the pursuers to the consequences of the catch."
4. Keep costs low. In his 1996 letter, Buffett wrote that being a "low-cost operator" is directly responsible for the success of Berkshire's GEICO auto insurance subsidiary. "Low costs permit low prices, and low prices attract and retain good policyholders." And when those customers recommend GEICO to their friends, the company gets an "enormous savings in acquisition expenses, and that makes our costs still lower."
5. Keep employee incentives simple. Buffett doesn't like what he calls "lottery ticket" arrangements, such as stock options, in which the ultimate value could range from "zero to huge" and is "totally out of the control of the person whose behavior we would like to affect." Instead, goals should be "tailored to the economics" of the business, simple and measurable, and "directly related to the daily activities of plan participants."
Read More Warren Buffett shares his secret: How you can 'tap dance to work'
6. Keep out of trouble. Buffett tries to "reverse engineer" the future at Berkshire. "If we can't tolerate a possible consequence, remote though it may be, we steer clear of planting its seeds." (Buffett notes that his partner Charlie Munger often says, "All I want to know is where I'm going to die so I'll never go there.")
7. Keep your undervalued stock to yourself. Buffett is especially critical of a company using its stock to make a purchase when that stock isn't being fully valued by the market. "Under such circumstances, a marvelous business purchased at a fair sales price becomes a terrible buy. For gold valued as gold cannot be purchased intelligently through the utilitization of gold—or even silver—valued as lead."
8. Keep it small. In 2006, Buffett wrote that he's skeptical "about the ability of big entities of any type to function well." In his opinion, "size seems to make many organizations slow-thinking, resistant to change and smug." That's one reason Berkshire's corporate headquarters still has only a handful of employees, with almost all the managing work left to its unit's managers. "It is a real pleasure to work with managers who enjoy coming to work each morning and, once there, instinctively and unerringly think like owners."
9. Keep your reputation. In Buffett's mind, perhaps the most important piece of advice for businesses, and for everyone else, is to maintain a sterling reputation for honesty by never doing something you wouldn't want to see reported on the front page of your local newspaper. After taking control of Salomon in the wake of a major 1991 scandal at the financial firm, he famously told a Congressional panel that he had a simple message for employees: "Lose money for the firm and I will be understanding; lose a shred of reputation for the firm and I will be ruthless."
As he put it in one of his most-often quoted sayings: "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."
—By CNBC's Alex Crippen. Follow him on Twitter: @alexcrippen
'via Blog this'
1. Keep calm in the face of volatility. Buffett writes that earnings gyrations "don't bother us in the least." After all, "Charlie and I would much rather earn a lumpy 15 percent over time than a smooth 12 percent."
2. Keep good company. Berkshire has never split its Class A shares. As a result, one share currently costs almost $214,000. That discouraged people from rapidly moving into and out of the stock, and that's exactly the way Buffett likes it. He wants shareholders who share his long-term view. All the way back in 1979, he wrote, "In large part, companies obtain the shareholder constituency that they seek and deserve. If they focus their thinking and communications on short-term results or short-term stock market consequences, they will, in large part, attract shareholders who focus on the same factors."
Read More Advice from Buffett's 30-year-old right-hand woman
3. Keep your focus. In that same letter, Buffett warns that even a great company can see its "value stagnate in the presence of hubris or of boredom that caused the attention of managers to wander." The result: a "sidetracked" leadership that "neglects its wonderful base business while purchasing other businesses that are so-so or worse." In this area, Buffett argues that "inactivity strikes us as intelligent behavior." In 1982, a year that saw a number of corporate deals, Buffett thought that in many of them, "managerial intellect wilted in competition with managerial adrenaline. The thrill of the chase blinded the pursuers to the consequences of the catch."
4. Keep costs low. In his 1996 letter, Buffett wrote that being a "low-cost operator" is directly responsible for the success of Berkshire's GEICO auto insurance subsidiary. "Low costs permit low prices, and low prices attract and retain good policyholders." And when those customers recommend GEICO to their friends, the company gets an "enormous savings in acquisition expenses, and that makes our costs still lower."
5. Keep employee incentives simple. Buffett doesn't like what he calls "lottery ticket" arrangements, such as stock options, in which the ultimate value could range from "zero to huge" and is "totally out of the control of the person whose behavior we would like to affect." Instead, goals should be "tailored to the economics" of the business, simple and measurable, and "directly related to the daily activities of plan participants."
Read More Warren Buffett shares his secret: How you can 'tap dance to work'
6. Keep out of trouble. Buffett tries to "reverse engineer" the future at Berkshire. "If we can't tolerate a possible consequence, remote though it may be, we steer clear of planting its seeds." (Buffett notes that his partner Charlie Munger often says, "All I want to know is where I'm going to die so I'll never go there.")
7. Keep your undervalued stock to yourself. Buffett is especially critical of a company using its stock to make a purchase when that stock isn't being fully valued by the market. "Under such circumstances, a marvelous business purchased at a fair sales price becomes a terrible buy. For gold valued as gold cannot be purchased intelligently through the utilitization of gold—or even silver—valued as lead."
8. Keep it small. In 2006, Buffett wrote that he's skeptical "about the ability of big entities of any type to function well." In his opinion, "size seems to make many organizations slow-thinking, resistant to change and smug." That's one reason Berkshire's corporate headquarters still has only a handful of employees, with almost all the managing work left to its unit's managers. "It is a real pleasure to work with managers who enjoy coming to work each morning and, once there, instinctively and unerringly think like owners."
9. Keep your reputation. In Buffett's mind, perhaps the most important piece of advice for businesses, and for everyone else, is to maintain a sterling reputation for honesty by never doing something you wouldn't want to see reported on the front page of your local newspaper. After taking control of Salomon in the wake of a major 1991 scandal at the financial firm, he famously told a Congressional panel that he had a simple message for employees: "Lose money for the firm and I will be understanding; lose a shred of reputation for the firm and I will be ruthless."
As he put it in one of his most-often quoted sayings: "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."
—By CNBC's Alex Crippen. Follow him on Twitter: @alexcrippen
'via Blog this'
Saturday, November 8, 2014
Perennial Real Estate decides not to reduce offer price for PCRT, Companies & Markets - THE BUSINESS TIMES
5 Nov8:11 AM
PERENNIAL Real Estate Holdings Limited (PREHL) plans to stick to its offer price to acquire the remaining units in Perennial China Retail Trust (PCRT) in respect of the latter's distribution for the third quarter of fiscal year 2014.
PREHL had earlier reserved its right to reduce the offer price for PCRT payable to any accepting unitholder of any PCRT units by the amount of dividend, right, other distribution or return of capital. On Wednesday, its joint financial advisers said the firm has elected not to exercise its right to reduce the offer price in respect of the third-quarter FY2014 distribution.
Unitholders who choose to accept the offer will still receive 0.52423 PREHL shares for each PCRT offer unit, the firm said in an announcement to the Singapore Exchange. PREHL is making a voluntary conditional offer to acquire the remaining units in PCRT in exchange for PREHL shares. Unitholders are offered 70 Singapore cents for each PCRT unit, to be paid for by the issuance of 0.52423 PREHL shares at some S$1.3353 each.
Unitholders who elect to accept the offer on or prior to Nov 12 will still be entitled to receive the latest quarterly distribution so long as they are on the register of PCRT as at the books closure date.
'via Blog this'
PERENNIAL Real Estate Holdings Limited (PREHL) plans to stick to its offer price to acquire the remaining units in Perennial China Retail Trust (PCRT) in respect of the latter's distribution for the third quarter of fiscal year 2014.
PREHL had earlier reserved its right to reduce the offer price for PCRT payable to any accepting unitholder of any PCRT units by the amount of dividend, right, other distribution or return of capital. On Wednesday, its joint financial advisers said the firm has elected not to exercise its right to reduce the offer price in respect of the third-quarter FY2014 distribution.
Unitholders who choose to accept the offer will still receive 0.52423 PREHL shares for each PCRT offer unit, the firm said in an announcement to the Singapore Exchange. PREHL is making a voluntary conditional offer to acquire the remaining units in PCRT in exchange for PREHL shares. Unitholders are offered 70 Singapore cents for each PCRT unit, to be paid for by the issuance of 0.52423 PREHL shares at some S$1.3353 each.
Unitholders who elect to accept the offer on or prior to Nov 12 will still be entitled to receive the latest quarterly distribution so long as they are on the register of PCRT as at the books closure date.
'via Blog this'
Reits band together to form new industry body, Real Estate - THE BUSINESS TIMES
Reits band together to form new industry body, Real Estate - THE BUSINESS TIMES:
6 Nov5:50 AM
Singapore
SEVERAL real estate investment trusts (Reits) have banded together to form an association - the Reit Association of Singapore (Reitas) - to promote the growth of Singapore's Reit sector. It will be headed by a nine-member executive committee, comprising representatives from some of the major Reits and sponsors such as Mapletree, CapitaLand, Frasers and Keppel.
Mapletree Investments group chief investment officer Chua Tiow Chye is president of the association, while Sonny Tan, a former general manager at Fraser & Neave, is CEO.
There are three vice-presidents, each of whom will head a separate sub-committee. ARA Asset Management (Fortune) CEO Anthony Ang will be responsible for engaging the authorities with the aim of improving the regulatory environment; CapitaLand group chief financial officer Arthur Lang will head education and research; while Keppel Reit CEO Ng Hsueh Ling will oversee promotion of Reitas initiatives.
The others in the committee include Ascendas Reit CEO Tan Ser Ping (treasurer) and Frasers Centrepoint Asset Management CEO Christopher Tang (member). Legal, trustee and banking representatives fill the other three spots.
Reitas has its first task cut out already - amassing feedback from Reits on the latest Monetary Authority of Singapore (MAS) consultation paper.
Mr Chua said that he understood the good intentions behind the proposal, but cautioned against the "slippery slope" of over-regulation. Blanket regulations should not be thrown onto the whole industry just because of "some black sheep", he said. "Some of the proposals requiring independent directors (IDs) to do beyond what is required of a listed company are quite excessive."
For instance, for interested party transactions, MAS proposes having the Reit manager's audit committee (comprising non-executive directors, mostly independent) certify that it is not aware of any other offer with better terms for any property divestments to a Reit.
"This is one part which I think is quite uncomfortable for IDs. While we agree with the principle that we should get the best price, we don't want to pass the onus to IDs," he said.
He is also against a prescriptive one-size-fits-all fee formula across all the Reits, as well as the doing away with acquisition fees for Reit managers, which would remove incentives for them to scout for deals, he said.
There has also been debate about whether Singapore Reits (S-Reits) should consider internal management - that is, absorbing the management team into the Reit, instead of having Reits externally managed by a sponsor-owned team.
The belief is that internal managers' interests are more aligned with investors', given that they are not motivated to earn huge fees from the Reit for the sponsor.
On this, Mr Chua, Mr Lang and Mr Ang say that they prefer to just let the market evolve naturally. Singapore's Reit market started from an externally managed model because its first Reits were all backed by strong developer-based sponsors. Interestingly, recently listed independent Reits such as IReit Global still choose an externally managed structure. Of course, this may change in future. What is important is that Reits should be allowed that flexibility to choose, Mr Chua said.
Singapore is at a crucial point now in its race to boost its standing as an international Reit market. It is currently the third-largest market in the Asia-Pacific, after Australia and Japan, but can be considered more international than both, which are more domestic-oriented.
At the same time, Malaysia, Hong Kong, Thailand and India are implementing aggressive policies to try to overtake Singapore's Reit market. And capital is now borderless. "If S-Reits do not keep at the forefront of things, we will disappear from the map," Mr Lang said.
Reitas has also been engaging MAS, and through it, the Inland Revenue Authority of Singapore and the finance ministry, on issues such as tax exemptions for foreign-sourced income as well as stamp duty remission for properties sold to S-Reits. Both benefits have so far been renewed every five years and will next end on March 31, 2015. The association hopes these will be made permanent or renewed, as it will give more certainty to Reits aspiring to list here.
Reitas also does not plan to be dominated just by the big boys, but welcomes the membership of small Reits, as well as trustees, trustee-managers, investment banks, lawyers, accountants, tax advisers, property consultants, private property fund managers and academia.
Already, the Singapore Exchange has agreed to be its corporate patron and will support it in its research and education work, which incidentally ties in with the exchange's own efforts on investor education.
Reitas is to be officially launched on Nov 17. Soon after, mom and pop investors can expect courses and seminars that help to "de-mystify" Reits. Separate courses will be made available to industry practitioners to help upgrade their skillsets in tandem with the advancement of the Reit industry.
'via Blog this'
6 Nov5:50 AM
Singapore
SEVERAL real estate investment trusts (Reits) have banded together to form an association - the Reit Association of Singapore (Reitas) - to promote the growth of Singapore's Reit sector. It will be headed by a nine-member executive committee, comprising representatives from some of the major Reits and sponsors such as Mapletree, CapitaLand, Frasers and Keppel.
Mapletree Investments group chief investment officer Chua Tiow Chye is president of the association, while Sonny Tan, a former general manager at Fraser & Neave, is CEO.
There are three vice-presidents, each of whom will head a separate sub-committee. ARA Asset Management (Fortune) CEO Anthony Ang will be responsible for engaging the authorities with the aim of improving the regulatory environment; CapitaLand group chief financial officer Arthur Lang will head education and research; while Keppel Reit CEO Ng Hsueh Ling will oversee promotion of Reitas initiatives.
The others in the committee include Ascendas Reit CEO Tan Ser Ping (treasurer) and Frasers Centrepoint Asset Management CEO Christopher Tang (member). Legal, trustee and banking representatives fill the other three spots.
Reitas has its first task cut out already - amassing feedback from Reits on the latest Monetary Authority of Singapore (MAS) consultation paper.
Mr Chua said that he understood the good intentions behind the proposal, but cautioned against the "slippery slope" of over-regulation. Blanket regulations should not be thrown onto the whole industry just because of "some black sheep", he said. "Some of the proposals requiring independent directors (IDs) to do beyond what is required of a listed company are quite excessive."
For instance, for interested party transactions, MAS proposes having the Reit manager's audit committee (comprising non-executive directors, mostly independent) certify that it is not aware of any other offer with better terms for any property divestments to a Reit.
"This is one part which I think is quite uncomfortable for IDs. While we agree with the principle that we should get the best price, we don't want to pass the onus to IDs," he said.
He is also against a prescriptive one-size-fits-all fee formula across all the Reits, as well as the doing away with acquisition fees for Reit managers, which would remove incentives for them to scout for deals, he said.
There has also been debate about whether Singapore Reits (S-Reits) should consider internal management - that is, absorbing the management team into the Reit, instead of having Reits externally managed by a sponsor-owned team.
The belief is that internal managers' interests are more aligned with investors', given that they are not motivated to earn huge fees from the Reit for the sponsor.
On this, Mr Chua, Mr Lang and Mr Ang say that they prefer to just let the market evolve naturally. Singapore's Reit market started from an externally managed model because its first Reits were all backed by strong developer-based sponsors. Interestingly, recently listed independent Reits such as IReit Global still choose an externally managed structure. Of course, this may change in future. What is important is that Reits should be allowed that flexibility to choose, Mr Chua said.
Singapore is at a crucial point now in its race to boost its standing as an international Reit market. It is currently the third-largest market in the Asia-Pacific, after Australia and Japan, but can be considered more international than both, which are more domestic-oriented.
At the same time, Malaysia, Hong Kong, Thailand and India are implementing aggressive policies to try to overtake Singapore's Reit market. And capital is now borderless. "If S-Reits do not keep at the forefront of things, we will disappear from the map," Mr Lang said.
Reitas has also been engaging MAS, and through it, the Inland Revenue Authority of Singapore and the finance ministry, on issues such as tax exemptions for foreign-sourced income as well as stamp duty remission for properties sold to S-Reits. Both benefits have so far been renewed every five years and will next end on March 31, 2015. The association hopes these will be made permanent or renewed, as it will give more certainty to Reits aspiring to list here.
Reitas also does not plan to be dominated just by the big boys, but welcomes the membership of small Reits, as well as trustees, trustee-managers, investment banks, lawyers, accountants, tax advisers, property consultants, private property fund managers and academia.
Already, the Singapore Exchange has agreed to be its corporate patron and will support it in its research and education work, which incidentally ties in with the exchange's own efforts on investor education.
Reitas is to be officially launched on Nov 17. Soon after, mom and pop investors can expect courses and seminars that help to "de-mystify" Reits. Separate courses will be made available to industry practitioners to help upgrade their skillsets in tandem with the advancement of the Reit industry.
'via Blog this'
Saturday, November 1, 2014
SMRT reports 75.5% spike in Q2 profits - Channel NewsAsia
SMRT reports 75.5% spike in Q2 profits - Channel NewsAsia:
SINGAPORE: Transport operator SMRT on Friday (Oct 31) said its profit after tax and minority interests for the second quarter of the current financial year rose 75.5 per cent year-on-year to S$25.3 million.
Operating profit for the quarter increased 66.5 per cent compared to a year ago to S$33.3 million, on the back of higher operating profit in fare business of $5.5 million and in non-fare business of S$27.2 million, SMRT said.
Its operating profit from train operations increased by S$6.6 million on the back of higher revenue and lower electricity costs, partially offset by higher depreciation. LRT losses, however, widened from S$400,000 to S$700,000, it said.
Bus operations improved from an operating loss of S$7.4 million to a lower operating loss of S$1.4 million, which it said was due mainly to higher revenue and productivity gains.
SMRT's operating expenses rose 2.5 per cent to S$292.9 million, due mainly to higher staff and depreciation costs, partially offset by lower energy expenditure, the transport operator said.
"The fare business environment will continue to be challenging owing to heightened operational demands on service, reliability and capacity," SMRT said. "The group will continue to grow its non-fare business by building on its rail engineering capabilities, and exploring local out-of-network and international opportunities."
The SMRT board has declared an interim dividend of 1.5 cents per ordinary share.
- CNA/ly
'via Blog this'
SINGAPORE: Transport operator SMRT on Friday (Oct 31) said its profit after tax and minority interests for the second quarter of the current financial year rose 75.5 per cent year-on-year to S$25.3 million.
Operating profit for the quarter increased 66.5 per cent compared to a year ago to S$33.3 million, on the back of higher operating profit in fare business of $5.5 million and in non-fare business of S$27.2 million, SMRT said.
Its operating profit from train operations increased by S$6.6 million on the back of higher revenue and lower electricity costs, partially offset by higher depreciation. LRT losses, however, widened from S$400,000 to S$700,000, it said.
Bus operations improved from an operating loss of S$7.4 million to a lower operating loss of S$1.4 million, which it said was due mainly to higher revenue and productivity gains.
SMRT's operating expenses rose 2.5 per cent to S$292.9 million, due mainly to higher staff and depreciation costs, partially offset by lower energy expenditure, the transport operator said.
"The fare business environment will continue to be challenging owing to heightened operational demands on service, reliability and capacity," SMRT said. "The group will continue to grow its non-fare business by building on its rail engineering capabilities, and exploring local out-of-network and international opportunities."
The SMRT board has declared an interim dividend of 1.5 cents per ordinary share.
- CNA/ly
'via Blog this'
FormFactor (FORM) Beats Q3 Earnings, Revenue Estimates - Analyst Blog - NASDAQ.com
FormFactor (FORM) Beats Q3 Earnings, Revenue Estimates - Analyst Blog - NASDAQ.com:
FormFactor reached a milestone by accomplishing profitability in two consecutive quarters since the fourth quarter of fiscal 2007. The sequential increase in the bottom line was primarily driven by increased revenues aided by higher demand and improving execution.
Formfactor, Inc - Earnings Surprise | FindTheBest
Revenue
Revenues of $73.9 million were up 9.8% sequentially and 9.3% from the year-ago quarter. Revenues also beat the Zacks Consensus Estimate of $73.0 million. The sequential increase was limited to the System on Chip (SoC) and DRAM segments. However, the NAND Flash segment declined. Region-wise, Japan was the strongest sequentially, but the increase in the Asia/Pacific and North America was also significant.
Revenues by Geography
Asia-Pacific contributed 33% of third quarter 2014 revenues (up 14.5% from the prior quarter but down 10.6% from the year-ago quarter). North America's share was 26% (up 14.6% from the prior quarter and 14% from the year-ago quarter) while South Korea brought in 20% of the revenues (down 1.4% from the prior quarter but up 15.1% from the year-ago quarter). Europe/Middle East accounted for 11% of the revenues (down 9.9% sequentially but up 90.7% on a year-over-year basis). Japan contributed the remaining 10% (up 39.2% sequentially and 16.4% from the year-ago quarter).
Revenues by End User
SoC revenues in the third quarter amounted to $39.4 million, up 7.9% from the prior quarter and 24.3% from the year-ago quarter. Overall strength in the market was driven by strong demand across mobile computing, personal computers and servers and continued momentum in copper pillar applications.The company also witnessed broad-based demand for SoC probe cards in markets like industrial and automotive in the quarter.
Reported revenues for DRAM products were $31.4 million, up 18.9% sequentially and 9.0% on a year-over-year basis. The increase can be attributed to the fact that DRAM customers invested in new technology nodes and new memory communication interface standards like DDR4 and LPDDR4. Each new standard leads to new designs, which in turn drive new probe cards.
Flash revenues were $3.1 million in the third quarter, a decline of 31.1% from the prior quarter and 56.3% from the year-ago quarter. NOR Flash revenues decreased $2.0 million in the third quarter to $1.1 million, while NAND Flash revenues increased $0.6 million to $2.0 million in the quarter.
The new NAND Flash probe card, Vector, contributed meaningfully to the $2 million of NAND Flash revenues in the quarter.
Margins
Non-GAAP gross profit was $28.4 million, or 38.5% of revenues, compared with non-GAAP gross profit of $24.4 million, or 36.2% of revenues in the prior quarter. The increase in this quarter's non-GAAP gross margin was attributed to increased absorption of fixed cost as a result of higher factory utilization manufacturing efficiencies.
Non-GAAP operating profit was $4.9 million, compared with $1.4 million in the previous quarter.
Operating expenses adjusted for restructuring, acquisition, amortization, integration and asset impairment charges came in at $23.5 million, up 2.3% sequentially and 5.2% from the year-ago quarter. Operating margin of 6.6% jumped 457 basis points sequentially and was more or less consistent with the prior year.
Pro forma net income was $5.1 million (9 cents a share) compared with $1.4 million (2 cents a share) in the previous quarter and a loss of $6.5 million (12 cents a share) in the year-ago quarter.
On a GAAP basis, net loss for the third quarter of fiscal 2014 was $ 0.3 million, or $0.00 per fully-diluted share, compared to a net loss of $ 4.3 million, or $0.08 per fully-diluted share in the previous quarter, and a net loss for the third quarter of fiscal 2013 of $10.7 million, or $0.20 per fully-diluted share.
'via Blog this'
FormFactor reached a milestone by accomplishing profitability in two consecutive quarters since the fourth quarter of fiscal 2007. The sequential increase in the bottom line was primarily driven by increased revenues aided by higher demand and improving execution.
Formfactor, Inc - Earnings Surprise | FindTheBest
Revenue
Revenues of $73.9 million were up 9.8% sequentially and 9.3% from the year-ago quarter. Revenues also beat the Zacks Consensus Estimate of $73.0 million. The sequential increase was limited to the System on Chip (SoC) and DRAM segments. However, the NAND Flash segment declined. Region-wise, Japan was the strongest sequentially, but the increase in the Asia/Pacific and North America was also significant.
Revenues by Geography
Asia-Pacific contributed 33% of third quarter 2014 revenues (up 14.5% from the prior quarter but down 10.6% from the year-ago quarter). North America's share was 26% (up 14.6% from the prior quarter and 14% from the year-ago quarter) while South Korea brought in 20% of the revenues (down 1.4% from the prior quarter but up 15.1% from the year-ago quarter). Europe/Middle East accounted for 11% of the revenues (down 9.9% sequentially but up 90.7% on a year-over-year basis). Japan contributed the remaining 10% (up 39.2% sequentially and 16.4% from the year-ago quarter).
Revenues by End User
SoC revenues in the third quarter amounted to $39.4 million, up 7.9% from the prior quarter and 24.3% from the year-ago quarter. Overall strength in the market was driven by strong demand across mobile computing, personal computers and servers and continued momentum in copper pillar applications.The company also witnessed broad-based demand for SoC probe cards in markets like industrial and automotive in the quarter.
Reported revenues for DRAM products were $31.4 million, up 18.9% sequentially and 9.0% on a year-over-year basis. The increase can be attributed to the fact that DRAM customers invested in new technology nodes and new memory communication interface standards like DDR4 and LPDDR4. Each new standard leads to new designs, which in turn drive new probe cards.
Flash revenues were $3.1 million in the third quarter, a decline of 31.1% from the prior quarter and 56.3% from the year-ago quarter. NOR Flash revenues decreased $2.0 million in the third quarter to $1.1 million, while NAND Flash revenues increased $0.6 million to $2.0 million in the quarter.
The new NAND Flash probe card, Vector, contributed meaningfully to the $2 million of NAND Flash revenues in the quarter.
Margins
Non-GAAP gross profit was $28.4 million, or 38.5% of revenues, compared with non-GAAP gross profit of $24.4 million, or 36.2% of revenues in the prior quarter. The increase in this quarter's non-GAAP gross margin was attributed to increased absorption of fixed cost as a result of higher factory utilization manufacturing efficiencies.
Non-GAAP operating profit was $4.9 million, compared with $1.4 million in the previous quarter.
Operating expenses adjusted for restructuring, acquisition, amortization, integration and asset impairment charges came in at $23.5 million, up 2.3% sequentially and 5.2% from the year-ago quarter. Operating margin of 6.6% jumped 457 basis points sequentially and was more or less consistent with the prior year.
Pro forma net income was $5.1 million (9 cents a share) compared with $1.4 million (2 cents a share) in the previous quarter and a loss of $6.5 million (12 cents a share) in the year-ago quarter.
On a GAAP basis, net loss for the third quarter of fiscal 2014 was $ 0.3 million, or $0.00 per fully-diluted share, compared to a net loss of $ 4.3 million, or $0.08 per fully-diluted share in the previous quarter, and a net loss for the third quarter of fiscal 2013 of $10.7 million, or $0.20 per fully-diluted share.
'via Blog this'
Friday, October 31, 2014
Monday, October 27, 2014
Perennial completes reverse takeover of St James Holdings - Channel NewsAsia
Perennial completes reverse takeover of St James Holdings - Channel NewsAsia: "Mr Pua Seck Guan, chief executive of Perennial, said: "We own the two largest high-speed rail commercial hubs in the whole of China - in Chengdu and Xi'an. In the case of Chengdu, we have a development area more than 12 million square feet. And in Xi'an, we have a development area of more than eight million square feet. These high-speed rail commercial developments also have local MRT and bus interchanges.""
'via Blog this'
'via Blog this'
SV TCL & Associates Probe Company Completes Integration of Tokyo Cathode Laboratory | Virtual-Strategy Magazine
SV TCL & Associates Probe Company Completes Integration of Tokyo Cathode Laboratory | Virtual-Strategy Magazine:
New SV TCL Website went Live on September 16.
Tempe, AZ, October 27, 2014 --(PR.com)-- SV Probe Pte. Ltd. (“SV TCL”), one of the world’s leading suppliers of high-performance probe cards, announced today that it has completed its integration of the probe card business and assets of Tokyo Cathode Laboratory (“TCL”) and launched a redesigned website at www.svprobe.com.
SV TCL KK began official operations in Japan on September 1, 2013 and to better reflect the synergies between the companies and recognize TCL’s reputation for high quality products, SV has rebranded itself SV TCL. Over the past year SV TCL has worked diligently to integrate TCL’s products, manufacturing processes and facilities with little or no disruption to customers. Another crucial element to the integration was the redesign of the SV TCL website which has been upgraded to a more current and functional platform with easier access to product information and optimized to function across all types of devices.
“SV TCL has worked incredibly hard during this time of integration to enhance our global infrastructure, determining the most efficient manufacturing processes and cost-effective locations in which to produce our products,” said Mr. Kevin Kurtz, President & CEO of SV TCL. “The new website is just one of the final integration steps and we look forward to the continuing success of this united business now and into the future.”
Probe cards are essential tools in the electrical testing of semiconductor wafers before they are diced, packaged and assembled in electronic products such as tablets, smart phones, computers and digital media players.
About SV TCL & Associates
Since 1994, SV TCL and Associates has been providing quality semiconductor testing products. Whatever your test application, we can assist in finding the right solution for your company's unique requirements. Our vision has always been to continually advance SV TCL as a premier, quality test solutions provider to the semiconductor industry, striving for excellence in everything we do. Our technologies, blended with the commitment to our customers, make SV TCL an industry leader, positioned and ready to meet the technical and manufacturing challenges of the future. In 2006, SV Probe became a wholly owned subsidiary of Ellipsiz Ltd, a leading service provider serving the semiconductor and electronics industries.
Contact Information:
SV TCL & Associates
Sara Bunker
480.635.4700
Contact via Email
www.svprobe.com/
Read more at http://www.virtual-strategy.com/2014/10/27/sv-tcl-associates-probe-company-completes-integration-tokyo-cathode-laboratory#m4ZF1cwmiLpYAYCu.99
'via Blog this'
New SV TCL Website went Live on September 16.
Tempe, AZ, October 27, 2014 --(PR.com)-- SV Probe Pte. Ltd. (“SV TCL”), one of the world’s leading suppliers of high-performance probe cards, announced today that it has completed its integration of the probe card business and assets of Tokyo Cathode Laboratory (“TCL”) and launched a redesigned website at www.svprobe.com.
SV TCL KK began official operations in Japan on September 1, 2013 and to better reflect the synergies between the companies and recognize TCL’s reputation for high quality products, SV has rebranded itself SV TCL. Over the past year SV TCL has worked diligently to integrate TCL’s products, manufacturing processes and facilities with little or no disruption to customers. Another crucial element to the integration was the redesign of the SV TCL website which has been upgraded to a more current and functional platform with easier access to product information and optimized to function across all types of devices.
“SV TCL has worked incredibly hard during this time of integration to enhance our global infrastructure, determining the most efficient manufacturing processes and cost-effective locations in which to produce our products,” said Mr. Kevin Kurtz, President & CEO of SV TCL. “The new website is just one of the final integration steps and we look forward to the continuing success of this united business now and into the future.”
Probe cards are essential tools in the electrical testing of semiconductor wafers before they are diced, packaged and assembled in electronic products such as tablets, smart phones, computers and digital media players.
About SV TCL & Associates
Since 1994, SV TCL and Associates has been providing quality semiconductor testing products. Whatever your test application, we can assist in finding the right solution for your company's unique requirements. Our vision has always been to continually advance SV TCL as a premier, quality test solutions provider to the semiconductor industry, striving for excellence in everything we do. Our technologies, blended with the commitment to our customers, make SV TCL an industry leader, positioned and ready to meet the technical and manufacturing challenges of the future. In 2006, SV Probe became a wholly owned subsidiary of Ellipsiz Ltd, a leading service provider serving the semiconductor and electronics industries.
Contact Information:
SV TCL & Associates
Sara Bunker
480.635.4700
Contact via Email
www.svprobe.com/
Read more at http://www.virtual-strategy.com/2014/10/27/sv-tcl-associates-probe-company-completes-integration-tokyo-cathode-laboratory#m4ZF1cwmiLpYAYCu.99
'via Blog this'
Sunday, October 26, 2014
Friday, October 24, 2014
Thursday, October 23, 2014
Why the Stock Market Rally Is Bad News - Bloomberg
Why the Stock Market Rally Is Bad News - Bloomberg: "But regular investors, especially those saving for retirement, have an advantage over the professionals. It's not rocket science: They can afford to be patient. By buying in good times and bad, they benefit from gradually rising markets. And it’s the bad times that deliver the most oomph to their portfolios. By buying extra when stocks drop – as Werner did in 2008 and 2009 – they’re following the advice of a dozen Warren Buffett quotes, like: “Be fearful when others are greedy, and greedy when others are fearful.""
'via Blog this'
'via Blog this'
Wednesday, October 22, 2014
Tuesday, October 21, 2014
3 Companies Paying Dividends This Week | The Motley Fool Singapore
3 Companies Paying Dividends This Week | The Motley Fool Singapore:
Ellipsiz Ltd (SGX:E13), which provides probe card and manufacturing solutions to the semiconductor and electronics manufacturing industries, is slated to go ex-dividend on Thursday.
It is dishing out 0.36 Singapore cent per ordinary share for the fourth quarter of 2014. For the full year, turnover was at S$144.5 million, a 16% growth year-on-year while net profit grew manifold to S$13.5 million. The stellar performance in revenue was mainly due to an increase in contributions from its probe card solutions business.
The shares exchanged hands at $0.10 on Friday. The company is trading at 4 times its latest earnings and is sporting a dividend yield of 3.6%.
'via Blog this'
Ellipsiz Ltd (SGX:E13), which provides probe card and manufacturing solutions to the semiconductor and electronics manufacturing industries, is slated to go ex-dividend on Thursday.
It is dishing out 0.36 Singapore cent per ordinary share for the fourth quarter of 2014. For the full year, turnover was at S$144.5 million, a 16% growth year-on-year while net profit grew manifold to S$13.5 million. The stellar performance in revenue was mainly due to an increase in contributions from its probe card solutions business.
The shares exchanged hands at $0.10 on Friday. The company is trading at 4 times its latest earnings and is sporting a dividend yield of 3.6%.
'via Blog this'
Monday, October 20, 2014
Singapore-based Aspial eyes local apartment pipeline | The Australian
Singapore-based Aspial eyes local apartment pipeline | The Australian:
SINGAPORE-based Aspial Corporation, headed by billionaire businessman Koh Wee Seng, has amassed six sites in Australia since January, delivering a development pipeline of 5200 apartments, it has revealed in an investor briefing.
The secretive developer has bought a number of sites along the eastern seaboard, but has made few public comments about its development intentions.
But the presentation to Singaporean investors included details for several projects, including the well-known 99-storey Australia 108 skyscraper in Southbank, Melbourne, that will have a gross floor area of 140,000sq m and more than 1105 apartments.
Other Melbourne projects will include the 750-unit 82-storey apartment building on A’beckett Street, with 55,000sq m of floor space, and a 50,000sq m mixed-use development on King Street, with 634 units.
In Cairns, the Singapore-listed Aspial will build a 1250-apartment mixed-use site with one commercial tower and six residential blocks. The $200 million project, with 120,000sq m of floor space, is scheduled to be launched in early 2015. Aspial bought the site in February for $18.9m.
There are a further two projects in Brisbane, including an 820-apartment mixed-use development on Albert Street and a 700-unit project in nearby Margaret Street. Both Brisbane projects will be delivered next year. Aspial bought the Albert Street site in August, paying Cornerstone Properties about $36m.
Tough regulations and intensifying competition with Chinese players is driving Singaporean developers, long content with building largely within the city-state, to look abroad.
The $S61 billion ($55bn) listed property trust sector is also taking greater interest in Australia, and Britain, says analysts at Kuala Lumpur-based CIMB. With several listings on Singapore’s securities exchange this year, and a possible easing of strict leverage limits, many real estate investment trusts are flush with cash.
Shaw Lay See, director of the property sales group for local developer Far East Organization, said nearly all land sales in Singapore were through government tenders, which had become increasingly competitive, with prices rising higher than expected. “We have to be a lot more focused on the properties we are tendering for than before,” she said.
Earlier this month there were 18 bidders on a single block. This was the highest number she had seen in two years, she noted. The tender was eventually won by a Chinese developer.
The last twelve months has seen a number of Singaporean developers and investment trusts enter the Australian market, including Frasers Commercial, Suntec REIT, Keppel REIT, Starhill Global REIT, CDL Hospitality, Ascott Residence Trust, UOL Group, Hiap Hoe, Aspial, Sim Lian, Fraser Centrepoint, Chip Eng Seng, Ho Bee Land and Far East Organization.
“The key attractions for Singapore developers to venture into Australia have been the twin drivers of being in the right part of the property cycle compared to the local Singapore market as well as the ability to generate better returns from non-Singapore development projects,” the CIMB report said. While developments in Singapore have an average profit margin of 10 per cent, most Singaporean developers in Australia say they can achieve 15 to 20 per cent.
Keppel REIT, a Singaporean investment vehicle, reported yields in Australia of 8.1 per cent on its Australian commercial property holdings, against an average of 4 per cent in Singapore. Australian REITs and diversified property companies have a cost of debt approaching 6 per cent, according to CIMB, while Singaporean REITs can obtain funding at 3 per cent to 4.5 per cent, providing a competitive advantage.
Mark Wizel, director of CBRE’s Melbourne city sales, who brokered a series of high-profile sales to international groups, estimated there was about $3.5bn worth of development projects in the Melbourne CBD being undertaken by Singaporean developers. “Singaporean developers have been quick to see the insatiable appetite from mainland Chinese buyers of off-the-plan apartments and rather than be reactive to the situation like they have in Singapore, they have seen Australia and Melbourne as an opportunity to get on the offensive and benefit early,” he said
'via Blog this'
SINGAPORE-based Aspial Corporation, headed by billionaire businessman Koh Wee Seng, has amassed six sites in Australia since January, delivering a development pipeline of 5200 apartments, it has revealed in an investor briefing.
The secretive developer has bought a number of sites along the eastern seaboard, but has made few public comments about its development intentions.
But the presentation to Singaporean investors included details for several projects, including the well-known 99-storey Australia 108 skyscraper in Southbank, Melbourne, that will have a gross floor area of 140,000sq m and more than 1105 apartments.
Other Melbourne projects will include the 750-unit 82-storey apartment building on A’beckett Street, with 55,000sq m of floor space, and a 50,000sq m mixed-use development on King Street, with 634 units.
In Cairns, the Singapore-listed Aspial will build a 1250-apartment mixed-use site with one commercial tower and six residential blocks. The $200 million project, with 120,000sq m of floor space, is scheduled to be launched in early 2015. Aspial bought the site in February for $18.9m.
There are a further two projects in Brisbane, including an 820-apartment mixed-use development on Albert Street and a 700-unit project in nearby Margaret Street. Both Brisbane projects will be delivered next year. Aspial bought the Albert Street site in August, paying Cornerstone Properties about $36m.
Tough regulations and intensifying competition with Chinese players is driving Singaporean developers, long content with building largely within the city-state, to look abroad.
The $S61 billion ($55bn) listed property trust sector is also taking greater interest in Australia, and Britain, says analysts at Kuala Lumpur-based CIMB. With several listings on Singapore’s securities exchange this year, and a possible easing of strict leverage limits, many real estate investment trusts are flush with cash.
Shaw Lay See, director of the property sales group for local developer Far East Organization, said nearly all land sales in Singapore were through government tenders, which had become increasingly competitive, with prices rising higher than expected. “We have to be a lot more focused on the properties we are tendering for than before,” she said.
Earlier this month there were 18 bidders on a single block. This was the highest number she had seen in two years, she noted. The tender was eventually won by a Chinese developer.
The last twelve months has seen a number of Singaporean developers and investment trusts enter the Australian market, including Frasers Commercial, Suntec REIT, Keppel REIT, Starhill Global REIT, CDL Hospitality, Ascott Residence Trust, UOL Group, Hiap Hoe, Aspial, Sim Lian, Fraser Centrepoint, Chip Eng Seng, Ho Bee Land and Far East Organization.
“The key attractions for Singapore developers to venture into Australia have been the twin drivers of being in the right part of the property cycle compared to the local Singapore market as well as the ability to generate better returns from non-Singapore development projects,” the CIMB report said. While developments in Singapore have an average profit margin of 10 per cent, most Singaporean developers in Australia say they can achieve 15 to 20 per cent.
Keppel REIT, a Singaporean investment vehicle, reported yields in Australia of 8.1 per cent on its Australian commercial property holdings, against an average of 4 per cent in Singapore. Australian REITs and diversified property companies have a cost of debt approaching 6 per cent, according to CIMB, while Singaporean REITs can obtain funding at 3 per cent to 4.5 per cent, providing a competitive advantage.
Mark Wizel, director of CBRE’s Melbourne city sales, who brokered a series of high-profile sales to international groups, estimated there was about $3.5bn worth of development projects in the Melbourne CBD being undertaken by Singaporean developers. “Singaporean developers have been quick to see the insatiable appetite from mainland Chinese buyers of off-the-plan apartments and rather than be reactive to the situation like they have in Singapore, they have seen Australia and Melbourne as an opportunity to get on the offensive and benefit early,” he said
'via Blog this'
Thursday, October 16, 2014
Dark Pools Said to Rebuff Orders Amid U.S. Volume Surge - Bloomberg
Dark Pools Said to Rebuff Orders Amid U.S. Volume Surge - Bloomberg: "Three of the largest dark pools told customers to trade elsewhere during at least part of yesterday’s session as concern about Ebola and global economic growth spurred the busiest day for U.S. stocks in three years.
Goldman Sachs Group Inc. (GS), Credit Suisse Group AG (CSGN) and UBS AG (UBSN) told some clients to temporarily stop sending orders as volume surged, according to five people with knowledge of the matter who spoke on condition of anonymity. The instructions came as the broader market processed 11.9 billion shares, the most since Oct. 27, 2011, according to data compiled by Bloomberg."
'via Blog this'
Goldman Sachs Group Inc. (GS), Credit Suisse Group AG (CSGN) and UBS AG (UBSN) told some clients to temporarily stop sending orders as volume surged, according to five people with knowledge of the matter who spoke on condition of anonymity. The instructions came as the broader market processed 11.9 billion shares, the most since Oct. 27, 2011, according to data compiled by Bloomberg."
'via Blog this'
Why this market is escaping the global sell-off
Why this market is escaping the global sell-off: "Mounting concerns over global growth led to heavy declines in stock indices around the world over the past month, but the Shanghai Composite bucked the trend."
'via Blog this'
'via Blog this'
Wednesday, October 15, 2014
Poll: Market turmoil - Time to buy, or run for cover?
Poll: Market turmoil - Time to buy, or run for cover?: "Signs of slowing growth in Europe and China coupled with concerns about an Ebola outbreak sparked a global equity rout this month, leading some analysts to call the beginning of a market correction.
Weak economic data from Germany, the growth engine of Europe, have raised concerns that the euro zone could slip into a recession. On Tuesday, the German government slashed its 2014 economic growth forecast to 1.2 percent from 1.8 percent on the back of disappointing export, industrial production and factory orders data."
'via Blog this'
Weak economic data from Germany, the growth engine of Europe, have raised concerns that the euro zone could slip into a recession. On Tuesday, the German government slashed its 2014 economic growth forecast to 1.2 percent from 1.8 percent on the back of disappointing export, industrial production and factory orders data."
'via Blog this'
Tuesday, October 14, 2014
POEMS Research : Daily Reports
POEMS Research : Daily Reports:
"HONGKONG
China Eastern Airlines – Continue a mild recovery trend
Rating:
Accumulate
Closing price: 2.65
Target price: 2.81
Total income reported to RMB 44.936 billion yuan in 1H, up 6.28% yoy. Net profit belonging to the parent company is RMB 12 million, shrinking by 98% yoy from 622 million in the same period of last year.
Earnings per share are 0.001 yuan while they were 0.536 in 2013H. The yield of passenger improved 1.2% yoy to 0.61 yuan. The international routes improved significantly, upping 6.34% yoy; regional routes with high profit fell by 10.6%; domestic routes reduced 0.2% yearly.
In August passenger traffic only slightly upped 2.65% yoy, mainly due to the relatively high influence on CEA on domestic airlines flow controls. While the F L/F grew 2.6 ppts to 60%.
We revised the Company’s estimated EPS to 0.14,0.22,0.3 in 2014/2015/2016 respectively. Our 12-m-target price is HK$2.81, equivalent to 15.3/10/7.4xP/E in 2014/2015/2016 respectively. We recommend causly accumulate rating."
'via Blog this'
"HONGKONG
China Eastern Airlines – Continue a mild recovery trend
Rating:
Accumulate
Closing price: 2.65
Target price: 2.81
Total income reported to RMB 44.936 billion yuan in 1H, up 6.28% yoy. Net profit belonging to the parent company is RMB 12 million, shrinking by 98% yoy from 622 million in the same period of last year.
Earnings per share are 0.001 yuan while they were 0.536 in 2013H. The yield of passenger improved 1.2% yoy to 0.61 yuan. The international routes improved significantly, upping 6.34% yoy; regional routes with high profit fell by 10.6%; domestic routes reduced 0.2% yearly.
In August passenger traffic only slightly upped 2.65% yoy, mainly due to the relatively high influence on CEA on domestic airlines flow controls. While the F L/F grew 2.6 ppts to 60%.
We revised the Company’s estimated EPS to 0.14,0.22,0.3 in 2014/2015/2016 respectively. Our 12-m-target price is HK$2.81, equivalent to 15.3/10/7.4xP/E in 2014/2015/2016 respectively. We recommend causly accumulate rating."
'via Blog this'
German government slashes 2014, 2015 growth views - MarketWatch
German government slashes 2014, 2015 growth views - MarketWatch: "BERLIN--Germany slashed its growth forecasts for this year and next, citing a weak global economy amid a series of international crises, in a step that follows a slew of poor data for Europe's biggest economy.
The economics ministry cut its forecast for economic growth this year to 1.2% from an earlier forecast of 1.8%, and to 1.3% for 2015 from 2% previously."
'via Blog this'
The economics ministry cut its forecast for economic growth this year to 1.2% from an earlier forecast of 1.8%, and to 1.3% for 2015 from 2% previously."
'via Blog this'
All the reasons to sell this market are enough to draw a guy in - MarketWatch
All the reasons to sell this market are enough to draw a guy in - MarketWatch: "“The complexity part is that the stock market does show momentum. Changes in the market are not normally distributed. Good times tend to lead to good times. Bad times lead to more bad times. The hard part, of course, is spotting when the trends change.”"
“Government doesn’t always do what’s best for you. It does what’s best for government,” he said. “The Ebola scare will continue, and the market will continue to get spooked. As soon as things get under control, the market will stabilize. Until it does, keep your head down and stay long the VIX!”
'via Blog this'
“Government doesn’t always do what’s best for you. It does what’s best for government,” he said. “The Ebola scare will continue, and the market will continue to get spooked. As soon as things get under control, the market will stabilize. Until it does, keep your head down and stay long the VIX!”
'via Blog this'
Monday, October 13, 2014
Courts Asia: 'Big-Box' megastore in Bekasi to officially open on 18 Oct 14. The first Courts megastore in Indonesia has begun retailing since its soft opening on 4 Oct 14. The megastore showcases innovative retail concepts with the widest range of home and lifestyle products. (Source: Courts Asia)
Ezra: Subsea services division finalises three contracts worth over US$300m with Noble Energy. The scope of work includes engineering, procurement, construction and installation of subsea tie-backs for the Big Bend, Dantzler and Gunflint field developments in the US Gulf of Mexico, which includes over 80 miles (130 km) of Pipe-in-Pipe (PiP) flowlines and over 56 miles (100 km) of umbilicals in water depths up to 7,200ft (2,200 metres). Offshore work will commence in 2015 using five EMAS AMC offshore construction vessels. (Source: Ezra)
GLP: Pre-leases 49,000sqm to leading express delivery providers in eastern China. GLP has signed pre-lease agreements totaling 49,000sqm (or 527,000sf) with Best Logistics and another leading express delivery provider in eastern China. Both customers are existing multi-location customers of GLP and are upgrading from their existing warehouses to GLP's modern facilities. (Source: Global Logistic Properties)
Nam Cheong: Sees record OSV deliveries in 2014-15. Malaysia's biggest builder of offshore support vessels said it expects record deliveries this year and next. This comes as the company's focus on shallow-water oil search products helps it withstand a drop in crude oil prices. (Source: The Business Times)
Mermaid Maritime: Increases stake in Subtech Saudi Arabia to 95%. The company has increased its stake in Subtech Saudi Arabia from 70% by acquiring previous co-shareholder General Technology & Systems Co. through its wholly-owned subsidiary. The remaining 5% in Subtech Saudi Arabia belongs to local interests represented by Integrated Trading Services Establishment. The consideration for the additional 25% stake is US$250,000. (Source: The Business Times)
Sino Grandness: 80.5% of Garden Fresh HK Rmb100m 0% convertible bonds due 2014 extended to 2015. The company has announced that bondholders representing 80.5% of the principal amount of the convertible bonds (CB) have indicated that they intend to exercise their right to extend the maturity date of the CB from 19 Oct 14 to 30 Jun 15. In addition, the company is repurchasing the remaining 19.5% of the principal amount of the CB for about Rmb37.9m. (Source: Sino Grandness)
Swissco: Secures chartering contracts with options worth US$17.3m. The offshore support vessels, comprising two new workboats and one anchor handling tug supply vessel, will be deployed in the Middle East under the contracts. The said contracts are expected to have a positive impact on Swissco’s financial performance from the fourth quarter of the current financial year. (Source: Swissco)
Retail Market Monitor Friday, 10 October 2014
www.utrade.com.sg 4
SINGAPORE
CORPORATE NEWS Tigerair: To right-size operations with sub-lease of 12 aircraft to IndiGo. This sub-lease arrangement enables the group to reduce excess capacity significantly and hence lower related leasing cost. These 12 aircraft will be progressively delivered to IndiGo over six months commencing Oct 14. (Source: Tiger Air) Comments: Tigerair also announced yesterday evening that it is contemplating a rights issue after stating that it will very likely have to make a provision of S$93m on surplus aircraft. We are not surprised by the need for further equity. As at the previous quarter, we stated that Tigerair was operating on negative equity if one were to exclude perpectual securities. We reckon Tigerair would need to raise at least S$150m and one possibility is a 1:2 rights allotment.
Yongnam: Secures three subcontracts worth S$76.6m for Thomson-East Coast MRT Line and a project in Hong Kong. Its subsidiary has secured two new subcontracts for the Thomson-East Coast Line Napier Station and the Thomson-East Coast Line Marina South Station and Tunnels in Singapore. In addition, its subsidiary in Hong Kong has secured a subcontract for a temporary steel bridge in Hong Kong. (Source: Yongnam)
Ezra: Subsea services division finalises three contracts worth over US$300m with Noble Energy. The scope of work includes engineering, procurement, construction and installation of subsea tie-backs for the Big Bend, Dantzler and Gunflint field developments in the US Gulf of Mexico, which includes over 80 miles (130 km) of Pipe-in-Pipe (PiP) flowlines and over 56 miles (100 km) of umbilicals in water depths up to 7,200ft (2,200 metres). Offshore work will commence in 2015 using five EMAS AMC offshore construction vessels. (Source: Ezra)
GLP: Pre-leases 49,000sqm to leading express delivery providers in eastern China. GLP has signed pre-lease agreements totaling 49,000sqm (or 527,000sf) with Best Logistics and another leading express delivery provider in eastern China. Both customers are existing multi-location customers of GLP and are upgrading from their existing warehouses to GLP's modern facilities. (Source: Global Logistic Properties)
Nam Cheong: Sees record OSV deliveries in 2014-15. Malaysia's biggest builder of offshore support vessels said it expects record deliveries this year and next. This comes as the company's focus on shallow-water oil search products helps it withstand a drop in crude oil prices. (Source: The Business Times)
Mermaid Maritime: Increases stake in Subtech Saudi Arabia to 95%. The company has increased its stake in Subtech Saudi Arabia from 70% by acquiring previous co-shareholder General Technology & Systems Co. through its wholly-owned subsidiary. The remaining 5% in Subtech Saudi Arabia belongs to local interests represented by Integrated Trading Services Establishment. The consideration for the additional 25% stake is US$250,000. (Source: The Business Times)
Sino Grandness: 80.5% of Garden Fresh HK Rmb100m 0% convertible bonds due 2014 extended to 2015. The company has announced that bondholders representing 80.5% of the principal amount of the convertible bonds (CB) have indicated that they intend to exercise their right to extend the maturity date of the CB from 19 Oct 14 to 30 Jun 15. In addition, the company is repurchasing the remaining 19.5% of the principal amount of the CB for about Rmb37.9m. (Source: Sino Grandness)
Swissco: Secures chartering contracts with options worth US$17.3m. The offshore support vessels, comprising two new workboats and one anchor handling tug supply vessel, will be deployed in the Middle East under the contracts. The said contracts are expected to have a positive impact on Swissco’s financial performance from the fourth quarter of the current financial year. (Source: Swissco)
Retail Market Monitor Friday, 10 October 2014
www.utrade.com.sg 4
SINGAPORE
CORPORATE NEWS Tigerair: To right-size operations with sub-lease of 12 aircraft to IndiGo. This sub-lease arrangement enables the group to reduce excess capacity significantly and hence lower related leasing cost. These 12 aircraft will be progressively delivered to IndiGo over six months commencing Oct 14. (Source: Tiger Air) Comments: Tigerair also announced yesterday evening that it is contemplating a rights issue after stating that it will very likely have to make a provision of S$93m on surplus aircraft. We are not surprised by the need for further equity. As at the previous quarter, we stated that Tigerair was operating on negative equity if one were to exclude perpectual securities. We reckon Tigerair would need to raise at least S$150m and one possibility is a 1:2 rights allotment.
Yongnam: Secures three subcontracts worth S$76.6m for Thomson-East Coast MRT Line and a project in Hong Kong. Its subsidiary has secured two new subcontracts for the Thomson-East Coast Line Napier Station and the Thomson-East Coast Line Marina South Station and Tunnels in Singapore. In addition, its subsidiary in Hong Kong has secured a subcontract for a temporary steel bridge in Hong Kong. (Source: Yongnam)
Boustead: Bags 3 deals worth S$137m. Boustead has been awarded three design-and-build contracts, potentially totalling S$137m, in the food, logistics and renewable energy industries in Singapore. The project is expected to be completed in 2015.The latest contracts will raise the group's orderbook backlog to over S$452m. (Source: The Business Times).
Chip Eng Seng: S$150m notes issue well received. Chip Eng Seng Corporation has seen strong demand for its S$150m fixed-rate notes, which are being issued under its S$500m multi-currency debt-issuance programme. (Source: The Business Times).
Kian Ho: To buy two Sophia Rd properties. In its effort to expand the scope of its bearings, seals and power transmission belts business, Kian Ho is planning to buy two properties on Sophia Road for a total of S$15.27m. Each has a lot area of 260 sqm, and has 55 years remaining in its tenure. (Source: The Business Times).
United Envirotech: Takes 49% stake in Sichuan JV.
United Envirotech continued to reap the reward of its new membrane-making business with a partial stake in an initial Rmb1.5b (S$300m) project in western China. United Envirotech will take 49% of a new JV in Sichuan, with Chengdu Xingrong Investment Co taking the remaining 51%. The partnership will have an initial paid-up capital of Rmb50m. (Source: The Business Times).
Chip Eng Seng: S$150m notes issue well received. Chip Eng Seng Corporation has seen strong demand for its S$150m fixed-rate notes, which are being issued under its S$500m multi-currency debt-issuance programme. (Source: The Business Times).
Kian Ho: To buy two Sophia Rd properties. In its effort to expand the scope of its bearings, seals and power transmission belts business, Kian Ho is planning to buy two properties on Sophia Road for a total of S$15.27m. Each has a lot area of 260 sqm, and has 55 years remaining in its tenure. (Source: The Business Times).
United Envirotech: Takes 49% stake in Sichuan JV.
United Envirotech continued to reap the reward of its new membrane-making business with a partial stake in an initial Rmb1.5b (S$300m) project in western China. United Envirotech will take 49% of a new JV in Sichuan, with Chengdu Xingrong Investment Co taking the remaining 51%. The partnership will have an initial paid-up capital of Rmb50m. (Source: The Business Times).
Eurosports & GMG Global: Issue profit warnings. Two Singapore-listed companies on Monday warned ahead of their earnings announcements that they would be making losses. Ultra-luxury and luxury car distributor EuroSports Global said that based on its preliminary assessment, it expects to report a loss for its half- year ended 30 Sep 14. (Source: The Business Times)
Keppel Land: SM-KL project in Manila enters Phase 2. Keppel Land is moving into the second phase of its SM-KL project in the Philippines - a joint venture between Keppel Philippine Properties and Banco de Oro (BDO), the banking arm of the SM Group. This second phase comprises a 42-storey office building and an extension of an existing five-storey retail component called The Podium. This phase's construction cost comes up to S$336m. (Source: The Business Times)
Lian Beng: 1QFY15 net profit surges 59% to S$11.97m. Lian Beng Group enjoyed a 58.5% surge in net profit to S$11.97m for its fiscal first quarter ended Aug 31, on the back of strong construction orders previously clinched. Group revenue rose 10.8% to S$167.64m over the same period, due mainly to an increase in revenue generated from the construction segment and workers' dormitory business, which more than offset the decrease in revenue in the ready-mixed concrete segment. (Source: The Business Times)
SPH Reit: 4Q DPU beats IPO forecast by 6.1%. The real estate investment trust, which is majority owned by media group Singapore Press Holdings, achieved an income distributable to unitholders of S$34.9m for the 4Q ended Aug 31, 2014. This translates to a distribution per unit (DPU) of 1.39 S cents for the quarter - 6.1% higher than forecast in its IPO. (Source: The Business Times)
SembcorpMarine: Jurong Shipyard wins US$696m contract. Jurong Shipyard, a wholly owned subsidiary of Sembcorp Marine (Sembmarine), has won a US$696m deal to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG - a JV between Brazil's Odebrecht Oil & Gas and Teekay Offshore. (Source: The Business Times)
Retail Market Monitor Tuesday, 14 October 2014
www.utrade.com.sg
Keppel Land: SM-KL project in Manila enters Phase 2. Keppel Land is moving into the second phase of its SM-KL project in the Philippines - a joint venture between Keppel Philippine Properties and Banco de Oro (BDO), the banking arm of the SM Group. This second phase comprises a 42-storey office building and an extension of an existing five-storey retail component called The Podium. This phase's construction cost comes up to S$336m. (Source: The Business Times)
Lian Beng: 1QFY15 net profit surges 59% to S$11.97m. Lian Beng Group enjoyed a 58.5% surge in net profit to S$11.97m for its fiscal first quarter ended Aug 31, on the back of strong construction orders previously clinched. Group revenue rose 10.8% to S$167.64m over the same period, due mainly to an increase in revenue generated from the construction segment and workers' dormitory business, which more than offset the decrease in revenue in the ready-mixed concrete segment. (Source: The Business Times)
SPH Reit: 4Q DPU beats IPO forecast by 6.1%. The real estate investment trust, which is majority owned by media group Singapore Press Holdings, achieved an income distributable to unitholders of S$34.9m for the 4Q ended Aug 31, 2014. This translates to a distribution per unit (DPU) of 1.39 S cents for the quarter - 6.1% higher than forecast in its IPO. (Source: The Business Times)
SembcorpMarine: Jurong Shipyard wins US$696m contract. Jurong Shipyard, a wholly owned subsidiary of Sembcorp Marine (Sembmarine), has won a US$696m deal to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG - a JV between Brazil's Odebrecht Oil & Gas and Teekay Offshore. (Source: The Business Times)
Retail Market Monitor Tuesday, 14 October 2014
www.utrade.com.sg
The Dow's correction has more room to move
The Dow's correction has more room to move: "If you understand where a 10 percent pullback is located, you will have the opportunity to take advantage of this temporary correction in the trend. A fall below 10 percent is a signal of a potential trend change.
A 10 percent correction in the DOW would bring the market back to the center line of the long-term uptrend. That's still bullish in anyone's language. A 10 percent correction on the NASDAQ would bring the market back to just above the support level and still well within the long-term up-sloping trading band.
A 10 percent correction on the S&P is more serious. This would drop the S&P below the support level near 1850 and below the lower edge of the long-term Guppy Multiple Moving Average (GMMA). This development would signal a high potential for a major trend change. The S&P is the canary in the coal mine."
Fundamentally, the biggest threat to markets is Ebola, not ISIS. Ebola has the capacity to rapidly overwhelm health systems and paralyze work environments.
'via Blog this'
A 10 percent correction in the DOW would bring the market back to the center line of the long-term uptrend. That's still bullish in anyone's language. A 10 percent correction on the NASDAQ would bring the market back to just above the support level and still well within the long-term up-sloping trading band.
A 10 percent correction on the S&P is more serious. This would drop the S&P below the support level near 1850 and below the lower edge of the long-term Guppy Multiple Moving Average (GMMA). This development would signal a high potential for a major trend change. The S&P is the canary in the coal mine."
Fundamentally, the biggest threat to markets is Ebola, not ISIS. Ebola has the capacity to rapidly overwhelm health systems and paralyze work environments.
'via Blog this'
Stocks to watch: SMRT, Sembmarine, Yoma, United Envirotech, UniFiber, DBS, Stocks - THE BUSINESS TIMES
Stocks to watch: SMRT, Sembmarine, Yoma, United Envirotech, UniFiber, DBS, Stocks - THE BUSINESS TIMES:
Here are several stocks to watch, given the latest news events:
1. SMRT Corp which said on Monday that it has decided not to make a bid at this stage to acquire British taxi company, Addison Lee.
It was responding to reports that SMRT was considering a takeover bid for Addison Lee. Britain's Sky News had reported that the Singapore transport operator was in the early stages of making an offer of £800 million (S$1.6 billion) for the taxi company.
SMRT said it was approached by an investment bank on the possible sale of Addison Lee, but after considering the matter, it decided against making a bid at this point.
2. Sembcorp Marine (Sembmarine) which announced a US$696 million contract to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG, a joint venture between Brazil's Odebrecht Oil & Gas and Teekay Offshore.
This brings Sembmarine's new contracts secured year-to-date to S$3.7 billion.
3. Yoma Strategic which has teamed up with New York-listed Yum! Brands to bring the first KFC restaurant to Myanmar in 2015, with Yoma as its franchise partner.
Yoma said this is an important step to achieving its goal towards being a key player in the country's food and beverage sector.
4. United Envirotech on Friday evening said it has agreed to take a 49 per cent stake in a joint venture to carry out an initial 1.5 billion yuan (S$311 million) worth of projects in western China.
Its joint venture partner is Chengdu Xingrong Investment Co, which takes the remaining 51 per cent.
The JV will provide engineering, procurement and construction using United Envirotech's membrane technology and products.
5. United Fiber System (UniFiber) after its auditors refrained from expressing an opinion on its interim consolidated financial statements. The financial statements for the period ended June 30, 2014, were prepared in connection with its proposed acquisition of Jakarta-listed coal miner PT Golden Energy Mines (Gems) through a reverse takeover.
UniFiber's directors, however, said the firm is able to settle its debt. This is assuming its proposed acquisition of Gems is successful - with the help of a planned compliance share placement, as well as a further issuance of bonds and shares if the acquisition and compliance share placement go through.
6. DBS Bank which has joined the World Bank's Global Infrastructure Facility (GIF) as an advisory partner. Launched on Thursday in Washington, the GIF aims to catalyse and mobilise private-sector investment in infrastructure projects in emerging markets.
As an advisory partner, DBS will offer advice on project preparation, optimal approaches to financial structuring and the design and use of risk instruments to ensure the suitability of emerging-market infrastructure projects for commercial or institutional investment.
'via Blog this'
Here are several stocks to watch, given the latest news events:
1. SMRT Corp which said on Monday that it has decided not to make a bid at this stage to acquire British taxi company, Addison Lee.
It was responding to reports that SMRT was considering a takeover bid for Addison Lee. Britain's Sky News had reported that the Singapore transport operator was in the early stages of making an offer of £800 million (S$1.6 billion) for the taxi company.
SMRT said it was approached by an investment bank on the possible sale of Addison Lee, but after considering the matter, it decided against making a bid at this point.
2. Sembcorp Marine (Sembmarine) which announced a US$696 million contract to convert a shuttle tanker into a floating, production, storage and offloading (FPSO) vessel for OOGTK Libra GmbH & Co KG, a joint venture between Brazil's Odebrecht Oil & Gas and Teekay Offshore.
This brings Sembmarine's new contracts secured year-to-date to S$3.7 billion.
3. Yoma Strategic which has teamed up with New York-listed Yum! Brands to bring the first KFC restaurant to Myanmar in 2015, with Yoma as its franchise partner.
Yoma said this is an important step to achieving its goal towards being a key player in the country's food and beverage sector.
4. United Envirotech on Friday evening said it has agreed to take a 49 per cent stake in a joint venture to carry out an initial 1.5 billion yuan (S$311 million) worth of projects in western China.
Its joint venture partner is Chengdu Xingrong Investment Co, which takes the remaining 51 per cent.
The JV will provide engineering, procurement and construction using United Envirotech's membrane technology and products.
5. United Fiber System (UniFiber) after its auditors refrained from expressing an opinion on its interim consolidated financial statements. The financial statements for the period ended June 30, 2014, were prepared in connection with its proposed acquisition of Jakarta-listed coal miner PT Golden Energy Mines (Gems) through a reverse takeover.
UniFiber's directors, however, said the firm is able to settle its debt. This is assuming its proposed acquisition of Gems is successful - with the help of a planned compliance share placement, as well as a further issuance of bonds and shares if the acquisition and compliance share placement go through.
6. DBS Bank which has joined the World Bank's Global Infrastructure Facility (GIF) as an advisory partner. Launched on Thursday in Washington, the GIF aims to catalyse and mobilise private-sector investment in infrastructure projects in emerging markets.
As an advisory partner, DBS will offer advice on project preparation, optimal approaches to financial structuring and the design and use of risk instruments to ensure the suitability of emerging-market infrastructure projects for commercial or institutional investment.
'via Blog this'
Shareholders of St James approve reverse takeover, News, News, AsiaOne Business News
Shareholders of St James approve reverse takeover, News, News, AsiaOne Business News:
Rennie Whang
The Straits Times
Monday, Oct 13, 2014
Shareholders of entertainment firm St James Holdings have overwhelmingly approved a $1.56 billion proposed reverse takeover of their company by Perennial Real Estate Holdings (PREH).
All 18 resolutions put to investors at yesterday's extraordinary general meeting were backed, with more than 99 per cent in favour.
St James Holdings chief executive Dennis Foo said after the meeting: "We are pleased with the strong support... (for the transaction) to transform the company into a sizeable real estate developer, owner and manager.
"Our objective to preserve and enhance shareholders' value has been achieved through this restructuring exercise."
In the first phase of the transaction, Perennial and other vendors will inject unlisted property assets into St James for $1.56 billion, which will be raised by issuing new shares.
Once this stage is completed - estimated to be around Oct 27 - St James will be renamed Perennial Real Estate Holdings Limited and transferred from the Catalist to the mainboard. It will operate as a property developer with assets here and in China.
Investors also backed a move yesterday to privatise St James' existing entertainment business, which has been hit by a challenging business environment and rising operating costs. All its 13 bars and clubs here, including Peppermint Park, Mono and mandopop club Shanghai Dolly at Clarke Quay, will be sold to CityBar Holdings and taken private.
The second phase involves a share swap for the remaining units of the PREH-sponsored business trust Perennial China Retail Trust. The units will be swapped for 70 cents apiece for new shares in Perennial Real Estate Holdings Limited.
PREH's holdings include Chijmes, TripleOne Somerset and Capitol Singapore here and 11 Chinese assets such as the Beijing Tongzhou Integrated Development and large-scale projects connected to high-speed rail stations in Xian and Chengdu.
PREH vice-chairman and president Pua Seck Guan said yesterday that the new firm will have a net asset value of about $1.9 billion and be a "dominant commercial developer... expected to provide shareholders with growth and (a) steady income stream from its China and Singapore assets".
This article was first published on Oct 11, 2014.
Get a copy of The Straits Times or go to straitstimes.com for more stories.
'via Blog this'
Rennie Whang
The Straits Times
Monday, Oct 13, 2014
Shareholders of entertainment firm St James Holdings have overwhelmingly approved a $1.56 billion proposed reverse takeover of their company by Perennial Real Estate Holdings (PREH).
All 18 resolutions put to investors at yesterday's extraordinary general meeting were backed, with more than 99 per cent in favour.
St James Holdings chief executive Dennis Foo said after the meeting: "We are pleased with the strong support... (for the transaction) to transform the company into a sizeable real estate developer, owner and manager.
"Our objective to preserve and enhance shareholders' value has been achieved through this restructuring exercise."
In the first phase of the transaction, Perennial and other vendors will inject unlisted property assets into St James for $1.56 billion, which will be raised by issuing new shares.
Once this stage is completed - estimated to be around Oct 27 - St James will be renamed Perennial Real Estate Holdings Limited and transferred from the Catalist to the mainboard. It will operate as a property developer with assets here and in China.
Investors also backed a move yesterday to privatise St James' existing entertainment business, which has been hit by a challenging business environment and rising operating costs. All its 13 bars and clubs here, including Peppermint Park, Mono and mandopop club Shanghai Dolly at Clarke Quay, will be sold to CityBar Holdings and taken private.
The second phase involves a share swap for the remaining units of the PREH-sponsored business trust Perennial China Retail Trust. The units will be swapped for 70 cents apiece for new shares in Perennial Real Estate Holdings Limited.
PREH's holdings include Chijmes, TripleOne Somerset and Capitol Singapore here and 11 Chinese assets such as the Beijing Tongzhou Integrated Development and large-scale projects connected to high-speed rail stations in Xian and Chengdu.
PREH vice-chairman and president Pua Seck Guan said yesterday that the new firm will have a net asset value of about $1.9 billion and be a "dominant commercial developer... expected to provide shareholders with growth and (a) steady income stream from its China and Singapore assets".
This article was first published on Oct 11, 2014.
Get a copy of The Straits Times or go to straitstimes.com for more stories.
'via Blog this'
Singapore Q3 GDP misses forecasts
Singapore Q3 GDP misses forecasts: "The economy expanded 2.4 percent in the third quarter from the year-ago period, missing a Reuters forecast for a 2.8 percent gain and following a rise of 2.4 percent rise in the previous quarter."
'via Blog this'
'via Blog this'
LittleBits CEO: Invent your own prototype
LittleBits CEO: Invent your own prototype: "
Video Embed Size: 530 X 298 640 X 360
"
'via Blog this'
Video Embed Size: 530 X 298 640 X 360
"
'via Blog this'
This is the most dangerous stock market since 2008 - MarketWatch
This is the most dangerous stock market since 2008 - MarketWatch:
Bottom line: Some believe the long-anticipated correction has finally arrived. My view is that it could be worse — the end of the bull market. Take action before too much damage is done to your portfolio. The last thing you want is to try to get out when everybody else is selling.
'via Blog this'
Bottom line: Some believe the long-anticipated correction has finally arrived. My view is that it could be worse — the end of the bull market. Take action before too much damage is done to your portfolio. The last thing you want is to try to get out when everybody else is selling.
'via Blog this'
Sunday, October 12, 2014
What Should Investors Do About The New REIT Regulations Proposed By MAS? | The Motley Fool Singapore
What Should Investors Do About The New REIT Regulations Proposed By MAS? | The Motley Fool Singapore:
The Monetary Authority of Singapore (MAS) released a consultation paper on Thursday which contained several proposals to strengthen the real estate investment trust (REIT) market.
I wrote a summary of the proposed changes here. In this article, I would like to write about how this may change the way we look at REITs.
A REIT’s ability to allocate capital
A lot of traits which we look for in a sustainable REIT should not change. As Foolish investors, we still need to consider the ability of a REIT to secure good properties at reasonable prices and increase the net property income (NPI) of its purchased properties.
The proposed regulatory changes may make it easier for a REIT to fund its activities (part of the changes involves the increase of a REIT’s leverage limit), but it is likely a good thing only if we put more cash in the hands of a REIT with good capital allocation skills – putting more cash in the hands of a REIT with poor ability to allocate capital may not be the smartest thing to do.
A REIT’s ability to borrow money smartly
Along this vein, REITs should also show the ability to secure competitive borrowing rates and demonstrate flexibility in securing funding across different economic climates. Having fewer limits on a REIT’s ability to borrow does not preclude a REIT from having to display this trait.
A REIT’s economic characteristics
The economic characteristics of REITs from different sectors would also not be affected (for better or worse) by this round of proposed changes in the regulatory environment.
For instance, REITs such as Suntec Real Estate Investment Trust (SGX: T82U) and CapitaCommercial Trust (SGX: C61U), which are both in the office rental sector for REITs, are affected by the demand and supply of different grades of office rental space and the ability of Singapore to attract new companies to set up shop here.
On the other hand, hospitality REITs like CDL Hospitality Trusts (SGX: J85) are influenced by a completely different set of factors such as tourist arrivals in Singapore and the supply of hotel rooms in our country.
In short, individual REITs will still need to deal with the inherent idiosyncrasies in their own sectors.
Using the “too hard” pile
If and when leverage limits for REITs are increased in the future as per MAS’ proposed changes, it might be prudent for Foolish Investors to consider tossing highly leveraged REITs in volatile sectors into the “too hard” pile. If a sneeze in the economy can produce wild swings in the income from a REIT’s properties’, then having elevated debt obligations over the long-term could be damaging for a REIT and its investors, to say the least.
Foolish take away
Ultimately, MAS’ proposed regulatory changes shouldn’t affect how investors view the long-term business fundamentals of a REIT. Most of the changes – such as the proposal to enhance disclosure standards – would likely allow investors a better opportunity to study REIT managers’ incentives and their operational know-how. But the rule changes would not change how good or bad a REIT is.
At the end, Foolish investors would still be better served only if they focus on REITs which have good quality properties and a capable management team in place who are able to create value over the long-term.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns shares in Suntec REIT.
'via Blog this'
The Monetary Authority of Singapore (MAS) released a consultation paper on Thursday which contained several proposals to strengthen the real estate investment trust (REIT) market.
I wrote a summary of the proposed changes here. In this article, I would like to write about how this may change the way we look at REITs.
A REIT’s ability to allocate capital
A lot of traits which we look for in a sustainable REIT should not change. As Foolish investors, we still need to consider the ability of a REIT to secure good properties at reasonable prices and increase the net property income (NPI) of its purchased properties.
The proposed regulatory changes may make it easier for a REIT to fund its activities (part of the changes involves the increase of a REIT’s leverage limit), but it is likely a good thing only if we put more cash in the hands of a REIT with good capital allocation skills – putting more cash in the hands of a REIT with poor ability to allocate capital may not be the smartest thing to do.
A REIT’s ability to borrow money smartly
Along this vein, REITs should also show the ability to secure competitive borrowing rates and demonstrate flexibility in securing funding across different economic climates. Having fewer limits on a REIT’s ability to borrow does not preclude a REIT from having to display this trait.
A REIT’s economic characteristics
The economic characteristics of REITs from different sectors would also not be affected (for better or worse) by this round of proposed changes in the regulatory environment.
For instance, REITs such as Suntec Real Estate Investment Trust (SGX: T82U) and CapitaCommercial Trust (SGX: C61U), which are both in the office rental sector for REITs, are affected by the demand and supply of different grades of office rental space and the ability of Singapore to attract new companies to set up shop here.
On the other hand, hospitality REITs like CDL Hospitality Trusts (SGX: J85) are influenced by a completely different set of factors such as tourist arrivals in Singapore and the supply of hotel rooms in our country.
In short, individual REITs will still need to deal with the inherent idiosyncrasies in their own sectors.
Using the “too hard” pile
If and when leverage limits for REITs are increased in the future as per MAS’ proposed changes, it might be prudent for Foolish Investors to consider tossing highly leveraged REITs in volatile sectors into the “too hard” pile. If a sneeze in the economy can produce wild swings in the income from a REIT’s properties’, then having elevated debt obligations over the long-term could be damaging for a REIT and its investors, to say the least.
Foolish take away
Ultimately, MAS’ proposed regulatory changes shouldn’t affect how investors view the long-term business fundamentals of a REIT. Most of the changes – such as the proposal to enhance disclosure standards – would likely allow investors a better opportunity to study REIT managers’ incentives and their operational know-how. But the rule changes would not change how good or bad a REIT is.
At the end, Foolish investors would still be better served only if they focus on REITs which have good quality properties and a capable management team in place who are able to create value over the long-term.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns shares in Suntec REIT.
'via Blog this'
Friday, October 10, 2014
John Lim Sees Real Returns With Li Ka-shing
John Lim Sees Real Returns With Li Ka-shing:
BY JANE A. PETERSON
This story appears in the August 18, 2014 issue of Forbes Asia
Property tycoon John Lim quit worrying about having enough money in 2007. That was when ARA Asset Management went public and he cashed out part of his holdings as the company’s cofounder. “It was the biggest payday of my life,” says the group chief executive, who describes himself as an “ordinary guy” with a knack for spotting a good deal.
To celebrate Lim bought a secondhand Porsche 911 Carrera S, picking silver as the color because it wasn’t too flashy. He moved his growing staff into new quarters on the 16th floor of one of the Suntec City towers just above the crown jewel of his real estate empire, Suntec City mall. The mid-1990s office building is functional but, again, not too flashy. Lim says he didn’t consider slacking off and instead found himself working more. “It’s the passion that drives me now,” he explains. “After so many years I still love my business.”
Maybe that’s because business is booming. ARA–short for Asian Realty Advisors–encompasses eight real estate investment trusts, seven private real estate funds, a burgeoning property-management operation and more than 1,000 employees. The business spans 14 cities, from Dalian to Sydney. It boasts $20.2 billion in assets under management as of Mar. 31, and its shares are up more than 120% since 2007. He makes the Singapore list for the fifth straight year, with a net worth of $565 million–40% higher than a year ago.
Click here for Singapore’s Richest 2014
The 58-year-old Lim’s road to riches began only in 2002. Over dinner one night in Singapore a lieutenant of Hong Kong billionaire Li Ka-shing suggested that they form a Hong Kong real estate fund. Li knew Lim from deals that Lim had pursued in Hong Kong, though none had come together. Joining with Li meant leaving a career at GRA Singapore, a subsidiary of U.S.-based Prudential Real Estate Investors, but who turns down Superman? Lim stumped up $700,000 of his own money to add to Li’s $300,000, and they were in business. To this day Lim says he isn’t sure why Li tapped him as a partner. Still, the chemistry worked.
The venture encountered a rocky start–the SARS virus soon hit, hammering the Hong Kong economy–but Lim had an idea. He persuaded Li to bundle the malls and list the package not in Hong Kong but in Singapore–Asia’s first cross-border REIT. “I smell opportunity,” he says from his boardroom chair, recalling the 2003 listing. “That is my gift.”
Now Lim is embarking on another bold alliance that could boost ARA’s assets under management by 40%. Under a deal signed last October he and Singapore blue-chip Straits Trading Co. agreed to commit up to $770 million in seed capital to start property funds that ARA will manage. ARA and Straits Trading say they expect the funds to reach $8 billion in assets under management eventually.
But Straits Trading, owned by the family of the late banker and philanthropist Tan Chin Tuan (granddaughter Chew Gek Khim makes the list this year), drove a hard bargain. It put up 90% of the seed capital, and it demanded the largest share of ARA–20.1%. As a result Lim reduced his stake from 33% to 19.5% and the share held by Li’s Cheung Kong (Holdings) Ltd. fell to 7.8%. “I am happy to take a smaller stake in a much bigger pie–a much, much bigger pie,” he says. The new venture hasn’t announced any real estate purchases yet.
Lim grew up in Singapore as the youngest of six kids. His first mentor was his father, a strict teacher turned vice principal who was a classic, old-school taskmaster. “My father was fierce,” recalls Lim. “He would whack us when we failed a test.”
That upbringing produced his inner strength, Lim believes. While never making head boy, he says he was always in the top 10% and ultimately achieved first-class honors in engineering at the National University of Singapore. “I was not a good student in school compared with some of my friends who were rocket scientists,” he recalls. “But I worked hard and was blessed with the fruits of meritocracy.”
Before graduation in 1981 DBS Land offered Lim a job, and he soon began advancing in the company. Lim befriended his bosses’ bosses, who became his mentors. When he left to join GRA Singapore, and later when he started ARA with Li, they applauded. “They play golf with me now so I must still be a good student,” he says.
Lim calls China’s midmarket malls the “sweet spot” of Asian investment, regarding them as recession-proof. “In tough times you go to the mall, you buy your noodle bowl and the groceries, and you watch a movie,” he says, adding this warning about high-end malls: “When the market is no good, nobody will buy your Louis Vuitton.” He continues: “I’m not so worried about e-commerce. Mainland Chinese are just like Singaporeans. Weekend shopping is their hobby. They want to be seen shopping.”
credit: Nelson Ching/Bloomberg
Lim is now spending $340 million to upgrade Suntec City mall, a prime example of a midmarket shopping center. It finished phase one last year; among the new features is the world’s largest high-definition video wall, according to Guinness World Records. It flashes: “Suntec Singapore, the preferred place to meet.” Suntec also boasts one of the world’s largest fountains, the now refurbished Fountain of Wealth, where shoppers line up to walk out and touch the pulsing water, absorbing its qi of prosperity. Lim himself doesn’t go down to touch the water, but like most Chinese businesspeople in Asia, he believes in feng shui and signs contracts on “good days,” if at all possible. He’s also not a shopper. “I walk around malls,” he says, “but I don’t shop.”
Lim starts each morning at 7, walking his Shetland dog, Chili, in his East Coast neighborhood while he plans his strategy for the day. After juice and a soup made of white fungus, which is “good for the lungs,” he heads to the office. “When I have a vision, I brainstorm with my senior people. Then I put up an execution plan and entrust my people to execute.” While some projects fail, he says he never blames the idea, only the implementation, which is always fraught with tax and regulatory hurdles, sticky relationships and funding hassles. “I’m a hard master,” he admits, “but my staff must find the solutions.”
Cheryl Seow, group chief financial officer, has been with Lim from the outset and sits in on interviews with journalists. “He is a good mentor,” she says. “But people who work for him must share his passion.” Says Lim, pointing to a Korean business that ARA pried away from Macquarie Group in December: “Most of the time we’re on the offensive. You don’t wait for people to come to you. You find ways to persuade them to sell.”
On Sundays Lim has a regular dinner date with his family, sometimes gathering at home but often going out. “Sometimes we go to fancy restaurants, and it costs me a lot of money!” he says. “But it’s important. I want to give my philosophy of life–my values of hard work and philanthropy–to my sons.” He thinks back to when he was building ARA, traveling even more than he does today. “I hardly paid attention to my boys when they were teens,” he muses. “That is my biggest regret.”
His Lim Hoon Foundation–started in 2008 and named after his late father, the schoolteacher–funds scholarships. The philanthropy, says Lim, has the added benefit of bringing his family closer together: “It’s improved our communications. We now have more to talk about.”
Lim’s elder son, Andy, who trained as a lawyer, lives across the street from his father and runs the family office next door to ARA’s offices. He and his professional managers help Lim invest his wealth, putting money into fixed income and equities and also Chinese and Singaporean startups in e-commerce, energy and health care. Lim’s younger son is still in school.
What is Lim’s weakness? “Public speaking,” he says, “and being interviewed.” Though seemingly at ease as he answers questions, Lim shudders when recalling his one live appearance on CNBC. After spending four days preparing to answer a set of questions, the interviewer asked him entirely different ones. He vowed to never repeat the mistake. “Life is too short,” he says, “I don’t need that kind of stress.”
These days Lim prefers to reserve his energy for building ARA: “The world is changing all the time. Once you stand still, you lose your leadership position–something I do not intend to do.”
'via Blog this'
BY JANE A. PETERSON
This story appears in the August 18, 2014 issue of Forbes Asia
Property tycoon John Lim quit worrying about having enough money in 2007. That was when ARA Asset Management went public and he cashed out part of his holdings as the company’s cofounder. “It was the biggest payday of my life,” says the group chief executive, who describes himself as an “ordinary guy” with a knack for spotting a good deal.
To celebrate Lim bought a secondhand Porsche 911 Carrera S, picking silver as the color because it wasn’t too flashy. He moved his growing staff into new quarters on the 16th floor of one of the Suntec City towers just above the crown jewel of his real estate empire, Suntec City mall. The mid-1990s office building is functional but, again, not too flashy. Lim says he didn’t consider slacking off and instead found himself working more. “It’s the passion that drives me now,” he explains. “After so many years I still love my business.”
Maybe that’s because business is booming. ARA–short for Asian Realty Advisors–encompasses eight real estate investment trusts, seven private real estate funds, a burgeoning property-management operation and more than 1,000 employees. The business spans 14 cities, from Dalian to Sydney. It boasts $20.2 billion in assets under management as of Mar. 31, and its shares are up more than 120% since 2007. He makes the Singapore list for the fifth straight year, with a net worth of $565 million–40% higher than a year ago.
Click here for Singapore’s Richest 2014
The 58-year-old Lim’s road to riches began only in 2002. Over dinner one night in Singapore a lieutenant of Hong Kong billionaire Li Ka-shing suggested that they form a Hong Kong real estate fund. Li knew Lim from deals that Lim had pursued in Hong Kong, though none had come together. Joining with Li meant leaving a career at GRA Singapore, a subsidiary of U.S.-based Prudential Real Estate Investors, but who turns down Superman? Lim stumped up $700,000 of his own money to add to Li’s $300,000, and they were in business. To this day Lim says he isn’t sure why Li tapped him as a partner. Still, the chemistry worked.
The venture encountered a rocky start–the SARS virus soon hit, hammering the Hong Kong economy–but Lim had an idea. He persuaded Li to bundle the malls and list the package not in Hong Kong but in Singapore–Asia’s first cross-border REIT. “I smell opportunity,” he says from his boardroom chair, recalling the 2003 listing. “That is my gift.”
Now Lim is embarking on another bold alliance that could boost ARA’s assets under management by 40%. Under a deal signed last October he and Singapore blue-chip Straits Trading Co. agreed to commit up to $770 million in seed capital to start property funds that ARA will manage. ARA and Straits Trading say they expect the funds to reach $8 billion in assets under management eventually.
But Straits Trading, owned by the family of the late banker and philanthropist Tan Chin Tuan (granddaughter Chew Gek Khim makes the list this year), drove a hard bargain. It put up 90% of the seed capital, and it demanded the largest share of ARA–20.1%. As a result Lim reduced his stake from 33% to 19.5% and the share held by Li’s Cheung Kong (Holdings) Ltd. fell to 7.8%. “I am happy to take a smaller stake in a much bigger pie–a much, much bigger pie,” he says. The new venture hasn’t announced any real estate purchases yet.
Lim grew up in Singapore as the youngest of six kids. His first mentor was his father, a strict teacher turned vice principal who was a classic, old-school taskmaster. “My father was fierce,” recalls Lim. “He would whack us when we failed a test.”
That upbringing produced his inner strength, Lim believes. While never making head boy, he says he was always in the top 10% and ultimately achieved first-class honors in engineering at the National University of Singapore. “I was not a good student in school compared with some of my friends who were rocket scientists,” he recalls. “But I worked hard and was blessed with the fruits of meritocracy.”
Before graduation in 1981 DBS Land offered Lim a job, and he soon began advancing in the company. Lim befriended his bosses’ bosses, who became his mentors. When he left to join GRA Singapore, and later when he started ARA with Li, they applauded. “They play golf with me now so I must still be a good student,” he says.
Lim calls China’s midmarket malls the “sweet spot” of Asian investment, regarding them as recession-proof. “In tough times you go to the mall, you buy your noodle bowl and the groceries, and you watch a movie,” he says, adding this warning about high-end malls: “When the market is no good, nobody will buy your Louis Vuitton.” He continues: “I’m not so worried about e-commerce. Mainland Chinese are just like Singaporeans. Weekend shopping is their hobby. They want to be seen shopping.”
credit: Nelson Ching/Bloomberg
Lim is now spending $340 million to upgrade Suntec City mall, a prime example of a midmarket shopping center. It finished phase one last year; among the new features is the world’s largest high-definition video wall, according to Guinness World Records. It flashes: “Suntec Singapore, the preferred place to meet.” Suntec also boasts one of the world’s largest fountains, the now refurbished Fountain of Wealth, where shoppers line up to walk out and touch the pulsing water, absorbing its qi of prosperity. Lim himself doesn’t go down to touch the water, but like most Chinese businesspeople in Asia, he believes in feng shui and signs contracts on “good days,” if at all possible. He’s also not a shopper. “I walk around malls,” he says, “but I don’t shop.”
Lim starts each morning at 7, walking his Shetland dog, Chili, in his East Coast neighborhood while he plans his strategy for the day. After juice and a soup made of white fungus, which is “good for the lungs,” he heads to the office. “When I have a vision, I brainstorm with my senior people. Then I put up an execution plan and entrust my people to execute.” While some projects fail, he says he never blames the idea, only the implementation, which is always fraught with tax and regulatory hurdles, sticky relationships and funding hassles. “I’m a hard master,” he admits, “but my staff must find the solutions.”
Cheryl Seow, group chief financial officer, has been with Lim from the outset and sits in on interviews with journalists. “He is a good mentor,” she says. “But people who work for him must share his passion.” Says Lim, pointing to a Korean business that ARA pried away from Macquarie Group in December: “Most of the time we’re on the offensive. You don’t wait for people to come to you. You find ways to persuade them to sell.”
On Sundays Lim has a regular dinner date with his family, sometimes gathering at home but often going out. “Sometimes we go to fancy restaurants, and it costs me a lot of money!” he says. “But it’s important. I want to give my philosophy of life–my values of hard work and philanthropy–to my sons.” He thinks back to when he was building ARA, traveling even more than he does today. “I hardly paid attention to my boys when they were teens,” he muses. “That is my biggest regret.”
His Lim Hoon Foundation–started in 2008 and named after his late father, the schoolteacher–funds scholarships. The philanthropy, says Lim, has the added benefit of bringing his family closer together: “It’s improved our communications. We now have more to talk about.”
Lim’s elder son, Andy, who trained as a lawyer, lives across the street from his father and runs the family office next door to ARA’s offices. He and his professional managers help Lim invest his wealth, putting money into fixed income and equities and also Chinese and Singaporean startups in e-commerce, energy and health care. Lim’s younger son is still in school.
What is Lim’s weakness? “Public speaking,” he says, “and being interviewed.” Though seemingly at ease as he answers questions, Lim shudders when recalling his one live appearance on CNBC. After spending four days preparing to answer a set of questions, the interviewer asked him entirely different ones. He vowed to never repeat the mistake. “Life is too short,” he says, “I don’t need that kind of stress.”
These days Lim prefers to reserve his energy for building ARA: “The world is changing all the time. Once you stand still, you lose your leadership position–something I do not intend to do.”
'via Blog this'
Thursday, October 9, 2014
Tuesday, October 7, 2014
Monday, October 6, 2014
Resale volumes of private condos plunge, Top Stories Premium News & Headlines - THE BUSINESS TIMES
Resale volumes of private condos plunge, Top Stories Premium News & Headlines - THE BUSINESS TIMES:
[SINGAPORE] In yet another sign of a stalemate between buyers and sellers, resale volumes of private condominiums have fallen to levels last seen during the Global Financial Crisis, with the bloodbath of declines seen splattered islandwide.
While sellers with strong holding power seemed unwilling to let go of their units at much-lower prices, District 18 in the east and District 27 in the north appear to have held up well in resale volumes for the second quarter.
District 18, which comprises Tampines and Pasir Ris, saw resale volumes inch up 5.6 per cent in the second quarter this year to 57 transactions compared to the year-ago period before the total debt servicing ratio (TDSR) kicked in on June 29, 2013.
Resale volumes of private condos in District 27, which covers Yishun and Sembawang, were flat at 18 transactions in the second quarter, compared to the same quarter last year.
Their resilience came against a plunge in resale volumes islandwide.
Total resales of private condos stood at 1,314 units in the second quarter, accounting for 31.9 per cent of all private non-landed residential transactions. This is moderately higher than the 29.9 per cent in the same quarter last year but lower than the 40.9 per cent in the fourth quarter of 2012.
District 7 comprising Middle Road and Golden Mile and District 19 covering Serangoon Garden, Hougang and Punggol saw the biggest falls in resale volumes across districts. Transactions in District 7 fell to two units in the second quarter from 12 in the second quarter last year while that in District 19 plummeted to 57 units from 164.
The comparisons of resale volumes before and after TDSR are based only on caveats lodged, which typically represent some 80 per cent of the market. This illustration excludes new sales as they are driven mainly by new launches that may not have taken place in certain districts. The heterogeneity of property units also prevent direct comparisons on price movements over time without controlling for quality differences through constructing an index, a weighted scheme or tracking repeat sales.
Nicholas Mak, executive director of SLP International, noted that much of the resales caveats were for family-size units. "The marketing activities of new projects in that district could have attracted buyers, who may have later decided to buy resale properties as they were cheaper in per square foot (psf) terms."
New launches in District 18 included City Developments' Coco Palms in Pasir Ris, which has moved over 560 units at a median price of S$1,020 psf since its launch in May. MCC Land managed to sell more than 100 units at The Santorini in Tampines since its launch in April at a median S$1,113 psf, according to URA's developer sales data. In comparison, median prices of resale units in District 18 stood at S$897 psf in the second quarter.
The lack of new launches in certain districts could also have the converse effect on the resale market - as seen in Districts 19 and 12 (Balestier, Toa Payoh, Serangoon), Mr Mak added.
R'ST Research director Ong Kah Seng noted that buying interest for homes in Pasir Ris is supported by well-tested leasing demand, especially from the Changi Business Park. The decentralisation of the banks' non-core back-office operations to the business park and increased foreign professionals in the technology sector have also expanded the potential tenant pool in the eastern part of Singapore, he noted.
At the other end of Singapore, District 22 (Jurong) also registered a marginal 4.3 per cent year-on-year drop in resale transactions of private condos in the second quarter, possibly finding some support from renewed interest in the area given URA's masterplan to transform Jurong Lake District, consultants observed.
All transactions (new sales, resales and subsales) involving private condos have slumped 40.7 per cent year-on-year in the second quarter to 4,118 - similar to the levels last seen during the 2008-2009 Global Financial Crisis.
Based on the URA property price index for non-landed homes, prices of private condos transacted in the second quarter have fallen to levels last seen in the fourth quarter of 2012. Prices in the Core Central Region (CCR) fell by a larger magnitude to a level similar to that in the fourth quarter of 2010.
OrangeTee head of research and consultancy Christine Li noted that the drop in foreign purchases due to the additional buyer's stamp duty (ABSD) has hurt the CCR market segment, as foreign buyers make up a significant portion of this segment.
"Secondly, the implementation of loan restrictions such as loan-to-value limits and the TDSR framework have hurt properties with high quantums," she added. "As such, CCR properties have not held up as well as RCR (Rest of Central Region) and OCR (Outside Central Region). This trend is likely to persist until current cooling measures are tweaked."
But given the exuberant run-up in property prices since the second half of 2009, sellers who sold their units recently are unlikely to have suffered a loss, though they could be making less profits than if they had sold their units last year, consultants noted.
A random sampling by SLP International on resale transactions in the second quarter showed that most of the sellers did not incur losses in the resale market because a majority of them bought their units more than three years ago when the prices were cheaper and they did not have to pay the seller's stamp duty for properties that they have held for more than four years.
'via Blog this'
[SINGAPORE] In yet another sign of a stalemate between buyers and sellers, resale volumes of private condominiums have fallen to levels last seen during the Global Financial Crisis, with the bloodbath of declines seen splattered islandwide.
While sellers with strong holding power seemed unwilling to let go of their units at much-lower prices, District 18 in the east and District 27 in the north appear to have held up well in resale volumes for the second quarter.
District 18, which comprises Tampines and Pasir Ris, saw resale volumes inch up 5.6 per cent in the second quarter this year to 57 transactions compared to the year-ago period before the total debt servicing ratio (TDSR) kicked in on June 29, 2013.
Resale volumes of private condos in District 27, which covers Yishun and Sembawang, were flat at 18 transactions in the second quarter, compared to the same quarter last year.
Their resilience came against a plunge in resale volumes islandwide.
Total resales of private condos stood at 1,314 units in the second quarter, accounting for 31.9 per cent of all private non-landed residential transactions. This is moderately higher than the 29.9 per cent in the same quarter last year but lower than the 40.9 per cent in the fourth quarter of 2012.
District 7 comprising Middle Road and Golden Mile and District 19 covering Serangoon Garden, Hougang and Punggol saw the biggest falls in resale volumes across districts. Transactions in District 7 fell to two units in the second quarter from 12 in the second quarter last year while that in District 19 plummeted to 57 units from 164.
The comparisons of resale volumes before and after TDSR are based only on caveats lodged, which typically represent some 80 per cent of the market. This illustration excludes new sales as they are driven mainly by new launches that may not have taken place in certain districts. The heterogeneity of property units also prevent direct comparisons on price movements over time without controlling for quality differences through constructing an index, a weighted scheme or tracking repeat sales.
Nicholas Mak, executive director of SLP International, noted that much of the resales caveats were for family-size units. "The marketing activities of new projects in that district could have attracted buyers, who may have later decided to buy resale properties as they were cheaper in per square foot (psf) terms."
New launches in District 18 included City Developments' Coco Palms in Pasir Ris, which has moved over 560 units at a median price of S$1,020 psf since its launch in May. MCC Land managed to sell more than 100 units at The Santorini in Tampines since its launch in April at a median S$1,113 psf, according to URA's developer sales data. In comparison, median prices of resale units in District 18 stood at S$897 psf in the second quarter.
The lack of new launches in certain districts could also have the converse effect on the resale market - as seen in Districts 19 and 12 (Balestier, Toa Payoh, Serangoon), Mr Mak added.
R'ST Research director Ong Kah Seng noted that buying interest for homes in Pasir Ris is supported by well-tested leasing demand, especially from the Changi Business Park. The decentralisation of the banks' non-core back-office operations to the business park and increased foreign professionals in the technology sector have also expanded the potential tenant pool in the eastern part of Singapore, he noted.
At the other end of Singapore, District 22 (Jurong) also registered a marginal 4.3 per cent year-on-year drop in resale transactions of private condos in the second quarter, possibly finding some support from renewed interest in the area given URA's masterplan to transform Jurong Lake District, consultants observed.
All transactions (new sales, resales and subsales) involving private condos have slumped 40.7 per cent year-on-year in the second quarter to 4,118 - similar to the levels last seen during the 2008-2009 Global Financial Crisis.
Based on the URA property price index for non-landed homes, prices of private condos transacted in the second quarter have fallen to levels last seen in the fourth quarter of 2012. Prices in the Core Central Region (CCR) fell by a larger magnitude to a level similar to that in the fourth quarter of 2010.
OrangeTee head of research and consultancy Christine Li noted that the drop in foreign purchases due to the additional buyer's stamp duty (ABSD) has hurt the CCR market segment, as foreign buyers make up a significant portion of this segment.
"Secondly, the implementation of loan restrictions such as loan-to-value limits and the TDSR framework have hurt properties with high quantums," she added. "As such, CCR properties have not held up as well as RCR (Rest of Central Region) and OCR (Outside Central Region). This trend is likely to persist until current cooling measures are tweaked."
But given the exuberant run-up in property prices since the second half of 2009, sellers who sold their units recently are unlikely to have suffered a loss, though they could be making less profits than if they had sold their units last year, consultants noted.
A random sampling by SLP International on resale transactions in the second quarter showed that most of the sellers did not incur losses in the resale market because a majority of them bought their units more than three years ago when the prices were cheaper and they did not have to pay the seller's stamp duty for properties that they have held for more than four years.
Sunday, October 5, 2014
Warren Buffett on investing: Look at stocks like you'd look at a business
Warren Buffett on investing: Look at stocks like you'd look at a business: ""If you own your stocks as an investment—just like you'd own an apartment, house or a farm—look at them as a business," Buffett advised. "If you're going to try to buy and sell them based on news or something your neighbor tells you, you're not going to do well. Find a good bunch of businesses and hold them.""
'via Blog this'
'via Blog this'
Friday, October 3, 2014
From The Straits Times archives: New contracting model a 'good move' for bus operators and commuters
From The Straits Times archives: New contracting model a 'good move' for bus operators and commuters:
What are your thoughts regarding the changes?
The new contracting model is superior to the status quo for three main reasons. First, the Government can be more responsive in making changes to bus routes and service attributes as travel patterns evolve.
Second, the Government can procure more effectively, through open and competitive tenders.
Third, service levels will improve as the winning bidder will be subject to a relatively short contract period of five years, which could be extended for two years if it performs well. Operators would also want to bid for other bus packages... so a good service track record would make commercial sense for the operators. This system better aligns the interests of the operator with those of the commuter.
The new model will succeed if there are sufficient bidders for each package so that the benefits of competition can be realised. The Land Transport Authority (LTA) would need to reach out to reputable operators, both local and foreign, to encourage them to bid.
Also, each of the packages should be large enough to retain economy of scale in operations and yet small enough that the bidders are not limited to only the very large operators.
In addition, the tender could take a two-envelope approach, where the first stage focuses on the quality of the proposal and the second on gross cost. We should not simply award contracts to the lowest cost bidder if there are doubts about its ability to perform.
I would caution against a "big bang" approach, where too many packages are implemented at one go. Transition issues would be challenging, given the large and diverse commuter base for public bus services.
The Government has always been loath to take revenue risks. So why this?
One of the benefits of the Government assuming fare risk is a better outcome in procurement. Ceteris paribus, removing fare risks from private sector bidders will improve the tender results. If a prospective operator had to take fare risks, he would build in a higher mark-up to account for the higher risk. In contrast, the Government would come under public pressure whenever it wanted to increase fares, even if conditions warranted it. No commuter likes a fare increase.
The new model will at least create greater transparency. This sits well with a better-educated populace. We would know what the "market clearing cost" is to provide the level of service that commuters need. Assuming this gross cost is higher than prevailing fare revenues, the amount of government subsidies needed would also be known.
What are the implications for taxpayers?
One could make a case for some form of government subsidies in public transport. I believe taxpayers will support subsidies for certain groups of commuters. For example, currently, two groups of commuters are directly subsidised by the Government: persons with disabilities and low-income workers.
Also, infrastructure investments create positive externalities for the Government: a more productive economy, a more attractive investment destination, higher government land sale prices, higher home prices, etc. These externalities benefit the Government and the populace at large and not just commuters.
Finally, efficient public transport is an essential public good and should be kept affordable. That doesn't mean no fare increases at all, since transport workers also need the occasional pay adjustments, fuel costs could rise and service levels might need to be enhanced over time. But my view is that fare increases should not outpace wage increases.
SMRT Corp chief executive Desmond Kuek
How do you feel about the sweeping reforms?
We look forward to them. A fee-based contracting arrangement is a much more sustainable business model for operators.
Currently, we run services to stipulated regulatory standards, but have little control over fares, routes or ridership. The new model takes away the fare revenue risk and allows us to focus squarely on the quality of our service delivery.
This is an area where we have been placing the greatest priority, and we believe we stand in good stead in the competitive tendering exercise. However, there remain significant issues in terms of bus and depot assets that need to be transferred with any change in operator - and most importantly, the interests of affected staff... that will need to be looked after.
What are the pitfalls we need to sidestep to make a success of this new model?
The greatest concern will be the impact on the overall workforce, because if bus captains are demotivated by changes in operator every five to seven years, or if they do not have the assurance of job stability or career progression... it will be hard to maintain a high level of service. So it's not just the immediate set of issues for transition to the contracting model that need to be ironed out, but also the long-term issues for a sustainable and professional workforce that need to be clarified upfront.
Another concern will be how to ensure stable operations during the transition, so commuters will not be unduly affected.
What do you think the new model will mean for bus drivers?
Winning a contract at a reasonable margin is not everything - attracting and retaining suitable bus captains, interchange and depot staff, and service controllers will be the more pertinent challenge. I believe our bus captains are discerning, and look for more than just a job - they seek an employer of choice and a viable career proposition.
Currently, SMRT has around 30 per cent of the market. With competitive tendering, there is a chance you might be out entirely. How do you feel about that?
That's the nature of competition - only the fittest survive. We are ready and prepared, and confident that we will be competitive based on the strength of our service delivery and operational efficiency.
PwC's Asia-Pacific leader for capital projects and infrastructure Mark Rathbone
In the contracting model, it might come across to some that tax money is being used to shore up the shortcomings of private enterprises. We have seen nationalised entities that are highly successful. So why not this route?
A key principle that governments should bear in mind when deciding on different operating models is that the model must be designed to meet policy objectives. There is no single model that fits every situation.
At the moment, LTA is providing funding to the bus network through the Bus Service Enhancement Programme, and this funding has resulted in improvements to service levels and passenger experience. Under the new model, LTA will pay operators for the services they deliver - it will not "bail out" the operators. LTA will clearly define the services that must be delivered. If the operators do not deliver, then we expect that they will be penalised financially. As a last resort, LTA could terminate the contract, and it might not award them any more contracts.
Throughout the world, there is a move away from state-owned enterprises delivering transport services. This is driven by the fact that these enterprises take the full risk of any cost increases, including those for labour, which is a key component for bus services. Adopting a contracting model transfers this risk to the private operators.
How will the Government keep a lid on public spending? In London, it seems subsidies have soared since this model was adopted in 1985.
As the masterplanner, LTA has the ability to control the specification of the network, which gives it some control over the level of funding it has to provide. Competition between operators at the time of tendering by LTA will result in efficiencies.
In addition, new operators from abroad will bring in new operating and maintenance practices, which will further drive improvements. These efficiencies and new operating practices will benefit both operators and the Government.
Further, operators must bid a price for a contract, at the time of tendering. Operators are paid this amount and are responsible for managing costs. Thus, LTA can forecast in advance what it will need to pay the operators - it provides them with budget certainty.
Public transport is a public good that has positive benefits for the economy and the quality of life for residents. For example, a reliable and safe bus network would encourage people to shift from private to public transport. Thus, government subsidisation of public transport should not be viewed negatively. What is more important is the effectiveness of the subsidy.
Investor and corporate advisor Mano Sabnani
How will the changes affect investors' perceptions of transport stocks?
It is a big change, which I think is positive overall.
Operators are assured of profitability. They will become asset-light, and their capital expenditure will go down.
They might lose some routes to competitors, but that is to be expected. The market has partly factored in this risk.
So from an investment point of view, transport stocks will become more attractive. But their prices have moved up already... and benefits will take time to show.
Commuters can look forward to higher standards at relatively low fares. Fares will be kept affordable, with the Government bearing any operational losses.
The Government can recover capital through land sales around interchanges, which would fetch higher prices.
christan@sph.com.sg
This article first appeared in The Straits Times on May 30, 2014
'via Blog this'
What are your thoughts regarding the changes?
The new contracting model is superior to the status quo for three main reasons. First, the Government can be more responsive in making changes to bus routes and service attributes as travel patterns evolve.
Second, the Government can procure more effectively, through open and competitive tenders.
Third, service levels will improve as the winning bidder will be subject to a relatively short contract period of five years, which could be extended for two years if it performs well. Operators would also want to bid for other bus packages... so a good service track record would make commercial sense for the operators. This system better aligns the interests of the operator with those of the commuter.
The new model will succeed if there are sufficient bidders for each package so that the benefits of competition can be realised. The Land Transport Authority (LTA) would need to reach out to reputable operators, both local and foreign, to encourage them to bid.
Also, each of the packages should be large enough to retain economy of scale in operations and yet small enough that the bidders are not limited to only the very large operators.
In addition, the tender could take a two-envelope approach, where the first stage focuses on the quality of the proposal and the second on gross cost. We should not simply award contracts to the lowest cost bidder if there are doubts about its ability to perform.
I would caution against a "big bang" approach, where too many packages are implemented at one go. Transition issues would be challenging, given the large and diverse commuter base for public bus services.
The Government has always been loath to take revenue risks. So why this?
One of the benefits of the Government assuming fare risk is a better outcome in procurement. Ceteris paribus, removing fare risks from private sector bidders will improve the tender results. If a prospective operator had to take fare risks, he would build in a higher mark-up to account for the higher risk. In contrast, the Government would come under public pressure whenever it wanted to increase fares, even if conditions warranted it. No commuter likes a fare increase.
The new model will at least create greater transparency. This sits well with a better-educated populace. We would know what the "market clearing cost" is to provide the level of service that commuters need. Assuming this gross cost is higher than prevailing fare revenues, the amount of government subsidies needed would also be known.
What are the implications for taxpayers?
One could make a case for some form of government subsidies in public transport. I believe taxpayers will support subsidies for certain groups of commuters. For example, currently, two groups of commuters are directly subsidised by the Government: persons with disabilities and low-income workers.
Also, infrastructure investments create positive externalities for the Government: a more productive economy, a more attractive investment destination, higher government land sale prices, higher home prices, etc. These externalities benefit the Government and the populace at large and not just commuters.
Finally, efficient public transport is an essential public good and should be kept affordable. That doesn't mean no fare increases at all, since transport workers also need the occasional pay adjustments, fuel costs could rise and service levels might need to be enhanced over time. But my view is that fare increases should not outpace wage increases.
SMRT Corp chief executive Desmond Kuek
How do you feel about the sweeping reforms?
We look forward to them. A fee-based contracting arrangement is a much more sustainable business model for operators.
Currently, we run services to stipulated regulatory standards, but have little control over fares, routes or ridership. The new model takes away the fare revenue risk and allows us to focus squarely on the quality of our service delivery.
This is an area where we have been placing the greatest priority, and we believe we stand in good stead in the competitive tendering exercise. However, there remain significant issues in terms of bus and depot assets that need to be transferred with any change in operator - and most importantly, the interests of affected staff... that will need to be looked after.
What are the pitfalls we need to sidestep to make a success of this new model?
The greatest concern will be the impact on the overall workforce, because if bus captains are demotivated by changes in operator every five to seven years, or if they do not have the assurance of job stability or career progression... it will be hard to maintain a high level of service. So it's not just the immediate set of issues for transition to the contracting model that need to be ironed out, but also the long-term issues for a sustainable and professional workforce that need to be clarified upfront.
Another concern will be how to ensure stable operations during the transition, so commuters will not be unduly affected.
What do you think the new model will mean for bus drivers?
Winning a contract at a reasonable margin is not everything - attracting and retaining suitable bus captains, interchange and depot staff, and service controllers will be the more pertinent challenge. I believe our bus captains are discerning, and look for more than just a job - they seek an employer of choice and a viable career proposition.
Currently, SMRT has around 30 per cent of the market. With competitive tendering, there is a chance you might be out entirely. How do you feel about that?
That's the nature of competition - only the fittest survive. We are ready and prepared, and confident that we will be competitive based on the strength of our service delivery and operational efficiency.
PwC's Asia-Pacific leader for capital projects and infrastructure Mark Rathbone
In the contracting model, it might come across to some that tax money is being used to shore up the shortcomings of private enterprises. We have seen nationalised entities that are highly successful. So why not this route?
A key principle that governments should bear in mind when deciding on different operating models is that the model must be designed to meet policy objectives. There is no single model that fits every situation.
At the moment, LTA is providing funding to the bus network through the Bus Service Enhancement Programme, and this funding has resulted in improvements to service levels and passenger experience. Under the new model, LTA will pay operators for the services they deliver - it will not "bail out" the operators. LTA will clearly define the services that must be delivered. If the operators do not deliver, then we expect that they will be penalised financially. As a last resort, LTA could terminate the contract, and it might not award them any more contracts.
Throughout the world, there is a move away from state-owned enterprises delivering transport services. This is driven by the fact that these enterprises take the full risk of any cost increases, including those for labour, which is a key component for bus services. Adopting a contracting model transfers this risk to the private operators.
How will the Government keep a lid on public spending? In London, it seems subsidies have soared since this model was adopted in 1985.
As the masterplanner, LTA has the ability to control the specification of the network, which gives it some control over the level of funding it has to provide. Competition between operators at the time of tendering by LTA will result in efficiencies.
In addition, new operators from abroad will bring in new operating and maintenance practices, which will further drive improvements. These efficiencies and new operating practices will benefit both operators and the Government.
Further, operators must bid a price for a contract, at the time of tendering. Operators are paid this amount and are responsible for managing costs. Thus, LTA can forecast in advance what it will need to pay the operators - it provides them with budget certainty.
Public transport is a public good that has positive benefits for the economy and the quality of life for residents. For example, a reliable and safe bus network would encourage people to shift from private to public transport. Thus, government subsidisation of public transport should not be viewed negatively. What is more important is the effectiveness of the subsidy.
Investor and corporate advisor Mano Sabnani
How will the changes affect investors' perceptions of transport stocks?
It is a big change, which I think is positive overall.
Operators are assured of profitability. They will become asset-light, and their capital expenditure will go down.
They might lose some routes to competitors, but that is to be expected. The market has partly factored in this risk.
So from an investment point of view, transport stocks will become more attractive. But their prices have moved up already... and benefits will take time to show.
Commuters can look forward to higher standards at relatively low fares. Fares will be kept affordable, with the Government bearing any operational losses.
The Government can recover capital through land sales around interchanges, which would fetch higher prices.
christan@sph.com.sg
This article first appeared in The Straits Times on May 30, 2014
'via Blog this'
Subscribe to:
Posts (Atom)