Singapore Land sales jump-started in Q1
Earnings was up 41% y-o-y, mainly led by additional units sold at The Trizon.
Here's from CIMB:
1Q12 earnings are slightly above at 26%/29% of consensus and our FY12 estimates on stronger sales at The Trizon but weaker 2Q/3Q12 hotel revenue on Hotel Pan Pacific’s closure. Maintain estimates (2Q/3Q to be less strong), Outperform and target price (45% disc to RNAV).
1Q12 earnings boosted by The Trizon
1Q12 revenue was up 41% yoy, mainly led by additional units sold at The Trizon and higher sales recognition. Based on URA data, take-up was 84%. Completion is expected in May 12.
FY12 should be supported by The Trizon and the recognition of presales at Archipelago (50% JV with UOL) as construction progresses. Estimated take-up at Archipelago was 47% at end-Mar 12, with 93 units sold from the 100 units launched in March.
Management expects the mass market to stay stable. FY12 hotel revenue (1Q12: +4% yoy) will be set back by the closure of Pan Pacific Hotel from April to early Aug 12.
Negative reversions tapering off
Negative rental reversions continued to taper off, as gross rental income from investment properties dipped only 1% yoy (FY11: -4% yoy). While management continues to expect pressure on offices, we take comfort in the >95% occupancy for its office assets and stable office rents thus far.