CapitaMalls Asia converts China development fund to an income fund, increase fund size, expand due date

This action is akind to the BBs telling you that either
1)the asset is not ready to be injected yet, because the asset prices has not peaked
2)they are stretched in China to improve their malls' NPI and ROI, so they want you to wait a little longer and they will compensate you with dividend at the mean time

This will surely affect the asset injection pipeline into CapitaRetail China Trust.

NLA efficiency

NLA efficiency is the ratio between NLA(net lettable area) and GFA(gross floor area). The more efficient it is, the more packed the mall/building is, unless the management/developer is smart enough to deflect some of it thru creative use of round/honeycomb/dome shape structure or water fountain or some other attractions.

a successful AEI, or beginning of a trend

What does

The Tube in Malaysia

Oxley Biz Hub in Singapore

or a small industrial building floor in Red Hill has in common?

They all have in mind for a young and hip generation SOHO style office.

Read more about the AEI by Mapletree Industrial Trust here (page 15)

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_50AB8AA4A20F0E8F4825787E00467006/$file/4QFY2010_Results_Presentation_Slides.pdf?openelement

Ascendas India Trust

the temporary dip in DPU is partly due to unwinding of capitalization of loan interest as Ascendas Park Square and Zenith has been completed thus they will have to recognize it in the income statement(Reason for lower DPU given in press is higher electricity tariff and fuel costs, but which other buildings in India can escape from higher electricity tariff and fuel costs?)

AMFirst REIT

AMFirst REIT has given a really mild hint that they expect to outperform in the next financial year and beyond by saying that they expect that they will be able to cover any charges/losses caused by the preliminary discharge with additional revenues expected in the future. For those who have not had a slightest idea of who they are, look at what they have done in Hong Kong, in Singapore, in Malaysia and in Australia.

4. EFFECTS OF THE DISCHARGE

The Discharge does not have any material effects on the unitholders’ capital, substantial unitholders’ unitholding, gearing and net asset value of the REIT. 

The Discharge will have an impact on the earnings of the REIT. However, for financial year ending 31 March 2011 this will be mitigated by an amount of RM5.67 million received as compensation awarded by the authorities following the compulsory acquisition of the common area fronting The Summit Subang USJ. For financial year ending 31 March 2012 and subsequent years, we expect additional revenue arising from new tenancies as well as positive rental reversion due to the repositioning and rebranding strategies implemented, which will invariably cushion any financial impact arising from the Discharge.

 Comments: Lets just hope that there will not be a huge private placement in the near future.

City square seems ready for injection

City Square seems ready to be injected into Malaysia Commercial Development Fund or CapitaMalls Malaysia Trust. In a recently completed AEI, the management has added some beauty kiosks at the ground floor and managed to revamp a huge dead end corner lot retail unit at second floor. They shrunk the corner lot and created a few beauty kiosks out of it. Brilliant. They will divest it only at the peak of the market. When is the peak? It might be before the completion of the nearby Komtar building or it will never be divested.

Arbitrage activities by listed companies

 

Currency Arbitrage

1) Buying products made in neighbouring countries at subsidised cost and selling at premium/higher than average price in destination countries

What i have seen – ice cream cakes, pastries, cookies

 

Interest Rate Arbitrage

2) Borrowing funds at low interest rates from source countries and buying properties with yield equivalent to/higher than borrowing cost in destination countries with high borrowing cost

Destination countries – Australia, India

How many of us bothered to read the 100++ pages prospectus

 

If you had even bothered to read  prospectus of a recently listed REIT in Malaysia stock exchange, you would have realized that the favourable yield given for its hotels under management is valid for the first two/three years only. What happens after that initial two to three years? Are we going to witness a drop in yield?

REIT FAQ – why why why

I am not going to tell the answers here. Read it in my upcoming book which will be published in 2011 or 2012 if there is sufficient interest

 

Question No 1

1) Why Robertson Walk will never be injected into Frasers Centrepoint Trust or Frasers Commercial Trust?( I am not saying totally impossible..but its a sure 99.99999999999999999999999999999999999999999999999999% no)

 

Question No 2 is related to Question No 1

2) Why City Square, Johor Bahru will never be injected into CapitaMalls Malaysia Trust??( I am not saying totally impossible..but its a sure 99.99999999999999999999999999999999999999999999999999% no within a 5 years period)

 

Question No 3

3) Why Starhill Global REIT(YTL’s Singapore REIT) will continue to trade at below 1x book value(currently 0.6x) despite repeated buy calls from analysts?(unless something major happens)

Queensbay Mall acquisition by CapitaMalls Asia

 

CapitaMalls Asia bought Queensbay Mall at RM651.8 million at 5% yield. People are asking in forums why the heck CapitaMalls Asia bought it at such an expensive valuation. I know why(what are the things they are going to do to the mall exactly, what is the ….what are the…)but I am not going to tell it here. Read it in my upcoming book which will be published in 2011 or 2012 if there is sufficient interest