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Singapore stock market and companies daily report (ST Aerospace, PLife REIT, CRCT) (January 30, 2012)

Contributed by Shares Investment

By Shares Investment

ST Aerospace Ended 4Q11 With Contracts Worth $350m
Singapore Technologies Aerospace, the aerospace subsidiary of Singapore Technologies Engineering (ST Engg), ended 2011 on a high note, winning a total of $350 million worth of contracts in the final quarter. ST Engg said that the contracts will be carried out at its network of facilities in the Americas, Asia Pacific and Europe. At quarter end, ST Aerospace redelivered 101 aircraft for airframe related maintenance and modification work. For passenger-to-freighter (PTF) conversions, it redelivered five Boeing 757-200 converted freighters to FedEx Express. Besides airframe redeliveries, ST Aerospace serviced 72 engines and 13,382 components for both commercial and military customers. Separately, its affiliate Vision Technologies Aerospace Incorporated has entered into an agreement with Pratt & Whitney to invest in a 50.1% stake in EcoServices to enhance the firm’s focus on green aftermarket solutions. The firm expects the transaction to be completed by 1H12.

Significance: While ST Aerospace ended 2011 on a high note, increasingly gloomy economic circumstances could stymie air traffic growth, in turn, affecting the firm. Notably, however, ST Aerospace’s defence contracts could provide some shelter from such economic headwinds.

PLife REIT’s FY11 Distributable Income Jumps 9.2%
ParkwayLife Real Estate Investment Trust (PLife REIT), one of Asia’s largest listed healthcare REITs by asset size registered a 9.2% increase to $58.1 million for its FY11 distributable income ended 31 December-11. Accordingly, distributable income per unit (DPU) grew from $0.0879 in FY10 to $0.096 in FY11. Gross revenue in FY11 jumped 9.6% on the back of full year revenue contribution from properties acquired in 2010 and 2011, and higher rent from existing properties. Whilst the portfolio expanded, overall financing costs for FY11 fell $2.2 million or 19.8% year-on-year, mainly due to interest cost savings from the refinancing and re-pricing exercises completed in August-10 and January-11. Finance costs were further reduced due to lower locked-in hedged rates arising from the recent extension of interest rates hedges with effect from August-11. This resulted in overall interest cost savings of approximately $2.5 million for FY11.

Significance: With long-term rental structures, 100% occupancy, and 88% of the total portfolio having downside revenue protection and 65% pegged to CPI-linked rental revision formulae, PLife REIT is positioned to weather the market uncertainty and continue generating stable returns.

CRCT’s 4Q11 DPU Jumps 10%
CapitaRetail China Trust (CRCT), the first and only China shopping mall REIT in Singapore announced on 27 January distribution per unit (DPU) of $0.028 for 4Q11, up by 10.1% over 4Q10. Total DPU for FY11 is $0.087, an increase of 4.1% over FY10. This works out to a distribution yield of 7.3% based on CRCT’s closing price of $1.185 on 27 January. CRCT’s 9 income-producing malls are operating at close to full occupancy rate of 98.1% due to strong organic growth. The two largest contributors to its portfolio’s net property income (NPI), CapitaMall Xizhimen and CapitaMall Wangjing, delivered NPI growth of about 12% for FY11. CapitaMall Wuhu, CapitaMall Qibao and CapitaMall Saihan continued their positive growth momentum and recorded NPI growth of 37.6%, 60.8% and 91.7% for FY11 respectively.

Significance: With retail sales growing at a robust rate of 17% in 2011, China continues to be an attractive market for retailers. Market watchers opine that increasing urbanisation, growing disposable income and pro-consumption government policies will support the sustainable growth of China’s consumption.

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.