REIT Oracle

CapitaLand Ascendas Sells S$112.8 Million Singapore Property

CapitaLand Ascendas REIT is selling its industrial property at Jalan Buroh (Singapore) for S$112.8 million:

This is nearly double the original purchase price of S$58.4 million, when the property was acquired in June 2006. It also represents a premium of S$45.3 million – or 67.1 per cent – to the average of two independent market valuations of the property, which was S$67.5 million as at Jul 1, 2024.

Frasers Hospitality Facing Higher Australian Taxes

Due to a change in the composition of its shareholders, Frasers Hospitality Trust (FHTAT) will face higher taxes on its Australian activities:

Following the completion of the share swap on September 20, FHTAT would not qualify as a withholding MIT for FY2024 (for the 12 months to September 30). FHTAT will not enjoy this preferential Australian withholding tax rate and the distribution from FHTAT in respect of FY2024 would be subject to an effective Australian tax rate of 37.5%. The reduction in FHT’s distributable income for FY2024 is estimated to be approximately $1.3 million. Based on FY2023's distributable income, this represents a 2.5% reduction.

CapitaLand Ascott Sells Japanese Property at 40% Above Book Value

CapitaLand Ascott Trust is divesting Citadine Karasuma-Gojo Kyoto, a service residence, for about JPY6.18 billion (S$53.1 million):

The 124-unit property was divested at 40.1% above book value at an exit EBITDA yield of about 0.3%. Net proceeds of the divestment are JPY4.4 billion (S$37.8 million) and CLAS has recognised a net gain of JPY0.9 billion (S$8.0 million).

Elite UK REIT Applies to Develop Datacentre Campus

Elite UK REIT submitted a planning application for a new data centre campus in Blackpool (UK):

The proposed campus will be built on a site located on 15.65 hectares (ha) of freehold land, of which existing buildings sit on a land area of about 3.95 ha. It will benefit from a nearby transatlantic subsea Internet cable linking Blackpool with North America and Europe. The site is also located less than 5 km to the town centre.

Mapletree Industrial to Acquire 98.47% Stake in a Tokyo Datacentre

Mapletree Industrial Trust is announcing the acquisition of a 98.47% stake in a datacentre in Tokyo (Japan) for sum of JPY14.3 billion (approximately S$127.8 million).

The freehold facility is 100% leased and mixed-use as it also includes back office, training facilities and an adjacent accommodation wing.

Proposed Acquisition to be DPU-accretive on a historical pro forma basis

CapitaLand Ascott Trust Buying Lyf Funan Co-Living Property

CapitaLand Ascott Trust (CLAS) is announcing the acquisition of lyf at Funan Mall (Singapore), for a sum of S$263 million:

Following the transaction, Clas’ managers expect that the total payout to investors will increase by $3.5 million.

This means each investor could receive 1.5 per cent more in dividends compared with the 2023 financial year.

Clas’ gearing is expected to remain under 40 per cent after the proposed acquisition.

lyf is a co-living property with 329 rooms, the largest in south-east Asia.

Manulife US REIT Selling Sacramento Office

Manulife US REIT is selling an office building in Sacramento, California, for US$117 million:

This amount, along with existing cash, will be used to fully repay about US$130.7 million in loans maturing in 2025. Following the repayment, there will be no debt maturities until 2026, said the manager.

Mapletree Logistics Sells Malaysian Warehouses

Mapletree Logistics Trust is planning the sale of three warehouse in Malaysia for RM157.5 million, all above their valuation as of March 31, 2024:

The proposed divestments are expected to be completed by FY2025. They are not expected to have a material impact on MLT’s net asset value and net property income for FY2025.

CICT to Buy Half of ION Orchard Mall From Sponsor

CapitaLand Integrated Commercial Trust is planning to acquire a 50% stake in Singapore's most famous mall, ION Orchard, at a property valuation of S$1,848 million:

CapitaLand Investment (CLI) will divest its 50% interest in ION Orchard to CICT. ION Orchard is currently held in a joint venture with Sun Hung Kai Properties holding the remaining 50%.

CICT's manager plans to raise $1.1 billion to pay for ION from a combination of a placement and a preferential offer to unitholders. The private placement comprises 171,737,000 new units to institutional and other investors at an issue price of between $2.038 and $2.091 per unit, to raise $350.0 million. The preferential offer comprises 377.3 million new units at an issue price of $2.007 per unit, in the ratio of 56 preferential offering units for every 1,000 existing units held by eligible unitholders to raise $757.2 million.

Monetary Authority of Singapore Is Considering Simplifying REIT Debt Limits

The Monetary Authority of Singapore is doing consultations about simplifying the rules for REIT debt limits:

MAS proposes that a minimum ICR of 1.5 times apply to all REITs. Currently, the ICR requirement of 2.5 times is to be met only by REITs which intend to increase their aggregate leverage from 45% to 50%. To simplify the requirements, MAS proposes that a single aggregate leverage limit of 50% apply to all REITs going forward.