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Singapore stock market and companies daily report (Boustead Singapore, GLP, A-HTrust) (January 29, 2013)

Contributed by Shares Investment

Boustead Singapore Received Multi-Million Redevelopment Contract
Boustead Singapore’s subsidiary, Boustead Projects, has been awarded a multi-million dollar contract by HSBC Institutional Trust Services (S) as a trustee of AIMS AMP Capital Industrial REIT to design and build a new facility for a redevelopment of an industrial property in Singapore. The project will transform the site into a high value five-storey industry facility and the asset’s value is expected to rise to $42.6 million, adding significant value to AIMS AMP Capital Industrial REIT’s portfolio. The redevelopment is expected to complete in calendar year 2Q14.
Significance: With this fifth contract win in the past three months, Boustead has over $88 million of industrial real estate contracts secured by the division in FY13 and raised the company’s order book backlog to over $352 million, ensuring a steady stream of income going forward.

GLP Leases 29,000sqm At Three Japan Facilities
Global Logistic Properties (GLP), has signed approximately 29,000 square metres (sqm) (312,000 square feet) of new leases in Greater Tokyo and Osaka with a major third party logistics (3PL) provider. GLP has leased 12,200 sqm at GLP Kadoma, located east of Osaka’s central business district, 9,300 sqm at GLP Kawasaki in Greater Tokyo and 7,200 sqm at GLP Osaka II, located 15km from central Osaka. Following these agreements, the lease ratio at these three assets under GLP stands at over 99 percent. Earlier, GLP had announced that it will be investing an estimated US$82 million to install solar panels on the rooftops of 22 properties in Japan. Under a new scheme in Japan, qualifying property owners can install solar panels and sell the electricity generated to utility companies. GLP expects a levered internal rate of return of about 17 percent on the investment.
Significance: GLP is expected to continue riding on the increasingly strong demand from 3PL companies with its strong network of modern logistics properties, high service levels as well as its ability to provide the best-in-class solutions to its clients.

Ascendas Hospitality Trust Beats Earnings Forecast in 3Q13 Results
Ascendas Hospitality Trust’s (A-HTrust) 3Q13 results ended 31 December beat its earnings forecast for a second consecutive quarter. It reported a distributable income of $12.5 million (3.6 percent higher than forecast) on the back of $17.1 million in net property income (4.1 percent higher than forecast). The stronger performance was despite a revenue of $51.4 million recorded for the period that was 2.5 percent lower than it had expected due to a weakening Australian economy and a softer Japanese yen against the Singapore dollar, although this was slightly offset by the completion of acquisition of the Ibis Beijing Sanyuan hotel in China six weeks ahead of schedule. Ibis Beijing Sanyuan also contributed $0.1 million to its net property income for the period. Meanwhile, A-HTrust notes that its asset enhancement initiatives programme for the Australia hotels remain on track and would focus on reaching new market segments and pursue cost-savings initiatives to improve operating margins.
Significance: Notably, the trust recorded $21.2 million in distributable income from its listing date, 27 July till 31 December 2012, which was 3.1 percent better than forecast, while its net property income was 6.1 percent higher than forecast at $29.7 million.