Saturday, October 26, 2013

Axis REIT - No Surprises (MKE)

Axis REIT -
Hold (unchanged)
Share price: MYR3.40
Target price: MYR3.35 (unchanged)
No Surprises

Maintain HOLD. Axis REIT (AXRB)’s 9M13 core net profit of MYR63m (+7% YoY) was within our and market expectations. 3Q13 DPU of 4.7sen (+9.3% YoY, +2.2% QoQ) was also in line. We maintain our FY13-15 earnings forecasts and DCF-based TP of MYR3.35. AXRB currently trades at a net FY14 yield of 5.1%, slightly below the average yields of 5.2% for large-cap retail REITs.


Results were in line. Excluding revaluation gains of MYR14.6m, AXRB’s 3Q13 core net profit of MYR21.3m (+11% YoY, +0.5% QoQ) took 9M13 core earnings to MYR63.1m (+7% YoY), making up 70-71% of our and consensus full-year estimates. YoY growth was driven by full-year contributions from assets acquired in 2012 and positive rental reversions (+8.1% for renewed leases). This more than offset the decline in average occupancy (-0.94ppts QoQ) due to the closure of the Axis Business Campus for enhancement works. The trust declared a 3Q13 DPU of 4.7sen (99% payout; YTD: 13.8sen, +6% YoY); in line.

Reinvestment plan (IDRP) for 3Q13 DPU. Investors can elect to reinvest 2.2sen of the declared DPU of 4.7sen in new units, while the remaining 2.5sen will be paid in cash. The IDRP also provides unitholders with the option to reinvest the entire electable portion (2.2sen) or part of the electable portion (1.1sen in new units, 1.1sen will be paid in cash). If unitholders elect not to participate in the IDRP, the electable portion will be paid entirely in cash. The issue price of new units pertaining to the IDRP has been fixed at MYR3.20.

Awaiting new acquisitions. Negotiations for the injection of warehouses and office industrial buildings worth MYR317m are underway, we understand. The injections could add 1.1sen to our FY14 DPU forecast, assuming a cap rate of 8% and 93% equity funding (on placement proceeds of MYR293m). AXRB has proposed a placement of up to 90.8m new units (+20% to existing share capital; MYR293m in proceeds on a 5% discount to current prices) to fund these acquisitions.



Source/Extract/Excerpts/来源/转贴/摘录: MKE-Research,
Publish date: 22/10/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
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每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
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