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MAYBANK KIM ENG |
PHILLIP SECURITIES |
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Netlink NBN Trust (NETLINK SP) 1HFY25: Underlying firm, although soft on surface
2Q/1HFY25 review: Soft on the surface 2QFY25 earnings fell by 11% YoY/QoQ, partially owing to 4% YoY/QoQ drop in EBITDA, whereas revenue was up 3% YoY/QoQ. 1HFY25 earnings fell by 8% YoY/4% QoQ, partially due to higher taxes and a slight EBITDA softness owing to absence of one-off gain from disposal of assets recorded in 1HFY24 (non-operating income). 1H revenue was stable despite the lower regulatory pricing kicking in from Apr’24. Despite reported earnings decline in 1HFY25, company declared a 1% increase in dividend of SGD2.68 cents, translating to an attractive annual yield of 6%.
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Cromwell European REIT Secured debt facilities to refinance bond
▪ 3Q24/9M24 DI was in line with our estimates, forming 26%/77% of our FY24e forecast. 3Q24 NPI rose 7% YoY, boosted by the completion of Nervesa21 office redevelopment in Milan, and Novo Mesto ONE Industrial Park I/III logistics development near Bratislava. 3Q24 DI was 7.8% lower YoY due to asset divestments and higher interest costs.
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PHILLIP SECURITIES |
UOB KAYHIAN |
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Elite UK REIT DPU back to growth
• Gross revenue for 9M24 decreased by 1.8% YoY to £28mn, in line with expectations and forming 74% of our FY24e estimates. The decline was solely due to straight-line adjustment and is expected to reverse in later years.
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CapitaLand Integrated Commercial Trust (CICT SP) 3Q24: Increasing Dominance Of Singapore’s Retail Scene
CICT clocked a positive rental reversion of 9.2% for retail and 11.7% for office in 9M24. NPI margin improved 2.5ppt yoy to 72.8% in 3Q24 due to cost savings from lower utility expenses and the new property management agreement. CICT is working on reconfiguring the upper floors and obtaining tax transparency for ION Orchard. Management intends to expand in integrated developments, which are more resilient throughout economic cycles. Maintain BUY. Target price: S$2.59.
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UOB KAYHIAN |
UOB KAYHIAN |
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NetLink NBN Trust (NETLINK SP) 2QFY25: A Slight Miss As Margins Compress
Despite higher 2QFY25 revenue (+2.5% yoy), Netlink posted lower EBITDA (-5.1% yoy) and PATMI (-7.4% yoy), slightly below our expectations. The softer-than-expected bottom line results were largely due to higher operating costs and one-off expenses. However, with its stable revenue streams and operating cash flows, we continue to like Netlink as a high-yielding, safe-haven stock. Maintain BUY with the same target price of S$0.98.
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Wilmar International (WIL SP) Recovery Is On, But Uncertainty Ahead
Management's briefing updates are in line with our expectation. 4Q24 core profit is likely to be higher than 3Q24’s, but lower yoy. During YKA’s briefing, management observed a sales recovery trend in 3Q24 and expects this to continue in 4Q24. Further, Wilmar may see a one-off gain from the sale of its 6.5% stake in Adani Wilmar. However, we note that election uncertainty in the US and weak consumer spending in China remain. Maintain HOLD. Target price: S$3.00.
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