Tuesday, May 20, 2014

********************** Suntec Reit: Uptrend still intact...... awaiting break above 1.80..... Accumulate.....

Suntec Reit has been trading from 1.77 to 1.80 for about a week already, have tested the psychological 1.80 resistance but failed to cross over 2 times. Likely to test it again over the next few weeks. Any break above the 1.80 can see it trade higher again to 1.90 to 2.00 level as mentioned previously. Bullish Double bottom spotted before the breakout above 1.75. Support remains at 1.77 then 1.75 currently. Uptrend intact and can continue to hold and ride the upside unless it proves otherwise.
Raise stop loss to 1.745 now.

Suntec REIT: Pure operational boost in 1Q14
Suntec REIT posted a strong recovery in its 1Q14 results, with NPI and distributable income rising 42.7% and 7.0% YoY to S$43.8m and S$50.9m respectively. The increase was due mainly to the opening of Suntec City Phase 1 and contribution from its recent acquisition in Sydney. Over the quarter, Suntec REIT continued to make significant progress on its leasing activities. On its capital management, we note that it has also signed a S$800m five-year unsecured loan facility to refinance the outstanding balance of its S$1.1b loan facility due in 2014 and 2015. Together with the recent private placement to pre-pay its S$350m debt due in 2015, Suntec REIT no longer has any refinancing needs till 2016. We maintain BUY with unchanged S$1.85 fair value on Suntec REIT.

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