（吉隆坡9日訊）大馬產托表現超越新加坡同儕，回酬差距正逐步收窄，分析員看好谷中城產托潛在上市有望進一步提昇市場深度，加上2012年6.8%誘人淨回酬表現，產托領域前景看俏。
馬銀行金英研究認為，2011年大馬產業投資信托（REITs）表現超越新加坡同儕，特別是柏威年產業信托（PAVREIT，5212，主板產業投資信托組）上市後，拉近12月中旬兩國產托回酬差距至29個基本點。
谷中城上市
或提高市場深度
“據悉，怡保花園（IGB，1597，主板產業組）現已聘請投資銀行來進行谷中城產托計劃，有望在2012年首半年上路，我們相信隨著Kris Asset旗下總值28億令吉的谷中城和園中城（The Gardens）上市，可能進一步提高大馬產托的深度和廣度。”
馬銀行指出，多數大馬產托現有負債比低於0.4倍，其中AXIS產業信托（AXREIT，5106，主板產業投資信托組）和嘉德商托（CMMT，5180，主板產業投資信托組）在私下配售後，負債比更將降至0.24倍至0.3倍之間。
“更重要的是，大馬產托經歷2008年全球金融風暴考驗，現多採取積極的資本管理，促使其未來1年再融資風險不高，而強勁的資產負債表更可為擴展提供空間。”
不過，產托的成功關鍵在於維持租戶能力，馬銀行表示，桂嘉資產管理（QCAPITA，5123，主板產業投資信托組）和嘉德商托現有38%和32%租賃更新名列同儕最佳，儘管辦公市場持續受供應過盛影響，但桂嘉仍憑藉積極管理，以及維持與租戶的良好關係，每年仍取得2至3%的租金上調。
“嘉德商托32%租賃更新與綠野購物中心（The Mines）有關，但公司現已取得正面的合約更新進展。”
整體而論，馬銀行認為，在疲憊經濟環境時，工業和策略地點零售產托前景較辦公產托為好，主要是工業產業獲供應有限和長期租約利好扶持，而零售環節雖恐面對租金成長下跌、零售開銷減少等風險，但柏威年產業信托和雙威產業信托（SUNREIT，5176，主板產業投資信托組）等黃金地段購物中心仍是投資者首選。
“我們對辦公領域供過於求情況感到憂慮，數據顯示整體辦公出租率從91%下滑至84%，而租金更是自2010年第四季下滑0.2%，但我們仍看好整體產托市場前景，加上2012年6.8%淨回酬表現，維持領域‘加碼’評級，其中AXIS產業信托（AXREIT，5106，主板產業投資信托組）為投資首選。”（星洲日報／財經）
Wednesday, January 11, 2012
Miami not yet a big cheer
KUALA LUMPUR: The Genting Group inched closer to getting a casino licence in Miami yesterday morning. The bill that could pave the way for up to three casino-resorts in Florida cleared its first legislative hurdle, despite fervent protest from business bigwigs like Walt Disney Co, which operates the flagship Walt Disney World theme park in Florida.
However, the Florida Senate’s favourable 7-3 vote on the bill included a provision that existing rival “pari-mutuels” (referring to the smaller gaming operators) would be allowed to operate as full casinos at the same 10% tax rate as the new mega-resorts, without needing to make additional investments. Amendments made by the state Senate before passing the bill took out a recommendation that would have required pari-mutuels to invest at least US$125 million (RM394 million) to win a casino permit, according to local media reports.
The amendment on the pari-mutuels, “if it remains part of the measure, could serve as a poison pill to doom the bill”, especially in the gambling-averse House of Representatives, where Representative Erik Fresen had said success hinges on there being a net reduction of predatory gaming in Florida,” The Miami Herald reported on Jan 9. “This is the beginning of the discussion,” the bill’s sponsor, Senator Ellyn Bogdanoff, was quoted by Bloomberg as saying.
It is understood that a final copy of the bill will need to be passed by both the Senate and the House of Representatives before it is signed into law or vetoed by the US President.
Over at the Big Apple, however, Genting seems to be powering ahead, having won the support of New York governor Andrew Cuomo for it to be the state’s partner in a planned US$4 billion, 3.8 million sq ft convention centre cum mixed-use development with up to 3,000 hotel rooms next to its “racino” in Aqueduct, Queens. Last week Cuomo recommended that casino-gaming be legalised in New York, a decision that may give Genting a full-fledged casino licence. As it is, Resorts World New York City (RWNY) can only offer electronic table games and video lottery terminals.
Genting is looking to complete Phase 1 or 2.6 million sq ft of the New York convention centre project, dubbed The New York International Convention and Exhibition Centre, by 2014 with the construction of the hotel rooms to commence in November 2015, the Wall Street Journal reported on Jan 6. No breakdown on the cost for the US$4 billion project has been given thus far.
Vincent Khoo, who heads UOB-KayHian Research in Kuala Lumpur, pointed out that it may take at least a year before Genting Malaysia Bhd knows for certain if it will have a casino licence in Miami, even if the lawmakers approve it as the state would need time to call and evaluate proposals. “Although Genting Malaysia can be re-rated significantly on its chances of securing the highly-coveted casino licences, both New York and Miami are unlikely to issue licences in 2012, bearing in mind that 2012 is an election year,” he said.
Still, Khoo calculates that the potential value accretion to equity “could be almost US$1.3 billion”, hypothetically speaking, given that the Miami property commands a 10 times EV/Ebitda (enterprise value over earnings before interest, tax, depreciation and amortisation).
In a note yesterday morning, Khoo wrote that “the potential value creation will be clearly implied by a share price jump”, pointing out that the market capitalisation of Genting Singapore Ltd surged by some S$2 billion (RM4.9 billion) between late-2006 and early-2007, as investors bet on the company clinching the Singapore casino licence.
“However, we have not imputed this potentially sizeable option value into our calculation until more regulatory hurdles are passed in the state of Florida,” Khoo wrote in the note, retaining a “hold” recommendation and RM3.95 target price for Genting Malaysia. “Our entry price is RM3.50 and below,” he told clients. “We expect the share price to remain range-bound given the neutral reactions to the new developments in New York and Miami,” he wrote.
At the current juncture, Khoo prefers parent Genting Bhd to Genting Malaysia. “Genting Bhd is a nearer-term play on the expected good momentum achieved at Resorts World Sentosa (under subsidiary Genting Singapore Plc),” Khoo told The Edge Financial Daily, noting the peak seasonal boost in 4Q2011 and 1Q2012 as well as the potential positive effect of the recently added VIP room capacity. UOB-KayHian has a “buy” call and RM12.24 target price for Genting Bhd, which “ultimately benefits from the group’s foray into the US market”.
TA Investment Management chief investment officer Choo Swee Kee also prefers Genting Bhd, which benefits from having multiple income streams, including that from Singapore. However, Choo is not too positive on the UK operations, under Genting Malaysia, as return on investments is still low at this point.
Choo isn’t overly concerned about the Genting group’s big headline investment numbers in the US, for which specific spending timelines and near-term cash needs have yet to be specified. “At this point, we don’t know whether a cash call is necessary, but it is possible”.
Nonetheless, Choo, whose fund holds Genting Bhd shares, thinks “Genting Bhd is a buy for [future] growth”. “Sometimes when you need to grow, you need to take some risk (and) without which, there would not be growth,” he said, also noting that there “will be value in the [casino] licences”.
In any case, UOB-KayHian’s Khoo pointed out that Genting Malaysia, which generates some RM1.6 billion free cash flow a year, “would be able to secure substantial debt financing at favourable terms”, should additional capital needs arise.
Genting Malaysia traded between RM3.85 and RM3.90 before resting at RM3.88 yesterday, down three sen or 0.77%, while Genting Bhd rose to as high as RM11.16 before closing at its day’s low of RM10.90, down 24 sen or 2.15%.
This article appeared in The Edge Financial Daily, January 11, 2012.
However, the Florida Senate’s favourable 7-3 vote on the bill included a provision that existing rival “pari-mutuels” (referring to the smaller gaming operators) would be allowed to operate as full casinos at the same 10% tax rate as the new mega-resorts, without needing to make additional investments. Amendments made by the state Senate before passing the bill took out a recommendation that would have required pari-mutuels to invest at least US$125 million (RM394 million) to win a casino permit, according to local media reports.
The amendment on the pari-mutuels, “if it remains part of the measure, could serve as a poison pill to doom the bill”, especially in the gambling-averse House of Representatives, where Representative Erik Fresen had said success hinges on there being a net reduction of predatory gaming in Florida,” The Miami Herald reported on Jan 9. “This is the beginning of the discussion,” the bill’s sponsor, Senator Ellyn Bogdanoff, was quoted by Bloomberg as saying.
It is understood that a final copy of the bill will need to be passed by both the Senate and the House of Representatives before it is signed into law or vetoed by the US President.
Over at the Big Apple, however, Genting seems to be powering ahead, having won the support of New York governor Andrew Cuomo for it to be the state’s partner in a planned US$4 billion, 3.8 million sq ft convention centre cum mixed-use development with up to 3,000 hotel rooms next to its “racino” in Aqueduct, Queens. Last week Cuomo recommended that casino-gaming be legalised in New York, a decision that may give Genting a full-fledged casino licence. As it is, Resorts World New York City (RWNY) can only offer electronic table games and video lottery terminals.
Genting is looking to complete Phase 1 or 2.6 million sq ft of the New York convention centre project, dubbed The New York International Convention and Exhibition Centre, by 2014 with the construction of the hotel rooms to commence in November 2015, the Wall Street Journal reported on Jan 6. No breakdown on the cost for the US$4 billion project has been given thus far.
Vincent Khoo, who heads UOB-KayHian Research in Kuala Lumpur, pointed out that it may take at least a year before Genting Malaysia Bhd knows for certain if it will have a casino licence in Miami, even if the lawmakers approve it as the state would need time to call and evaluate proposals. “Although Genting Malaysia can be re-rated significantly on its chances of securing the highly-coveted casino licences, both New York and Miami are unlikely to issue licences in 2012, bearing in mind that 2012 is an election year,” he said.
Still, Khoo calculates that the potential value accretion to equity “could be almost US$1.3 billion”, hypothetically speaking, given that the Miami property commands a 10 times EV/Ebitda (enterprise value over earnings before interest, tax, depreciation and amortisation).
In a note yesterday morning, Khoo wrote that “the potential value creation will be clearly implied by a share price jump”, pointing out that the market capitalisation of Genting Singapore Ltd surged by some S$2 billion (RM4.9 billion) between late-2006 and early-2007, as investors bet on the company clinching the Singapore casino licence.
“However, we have not imputed this potentially sizeable option value into our calculation until more regulatory hurdles are passed in the state of Florida,” Khoo wrote in the note, retaining a “hold” recommendation and RM3.95 target price for Genting Malaysia. “Our entry price is RM3.50 and below,” he told clients. “We expect the share price to remain range-bound given the neutral reactions to the new developments in New York and Miami,” he wrote.
At the current juncture, Khoo prefers parent Genting Bhd to Genting Malaysia. “Genting Bhd is a nearer-term play on the expected good momentum achieved at Resorts World Sentosa (under subsidiary Genting Singapore Plc),” Khoo told The Edge Financial Daily, noting the peak seasonal boost in 4Q2011 and 1Q2012 as well as the potential positive effect of the recently added VIP room capacity. UOB-KayHian has a “buy” call and RM12.24 target price for Genting Bhd, which “ultimately benefits from the group’s foray into the US market”.
TA Investment Management chief investment officer Choo Swee Kee also prefers Genting Bhd, which benefits from having multiple income streams, including that from Singapore. However, Choo is not too positive on the UK operations, under Genting Malaysia, as return on investments is still low at this point.
Choo isn’t overly concerned about the Genting group’s big headline investment numbers in the US, for which specific spending timelines and near-term cash needs have yet to be specified. “At this point, we don’t know whether a cash call is necessary, but it is possible”.
Nonetheless, Choo, whose fund holds Genting Bhd shares, thinks “Genting Bhd is a buy for [future] growth”. “Sometimes when you need to grow, you need to take some risk (and) without which, there would not be growth,” he said, also noting that there “will be value in the [casino] licences”.
In any case, UOB-KayHian’s Khoo pointed out that Genting Malaysia, which generates some RM1.6 billion free cash flow a year, “would be able to secure substantial debt financing at favourable terms”, should additional capital needs arise.
Genting Malaysia traded between RM3.85 and RM3.90 before resting at RM3.88 yesterday, down three sen or 0.77%, while Genting Bhd rose to as high as RM11.16 before closing at its day’s low of RM10.90, down 24 sen or 2.15%.
This article appeared in The Edge Financial Daily, January 11, 2012.
Sunday, January 8, 2012
Genting hits US jackpot?
Written by Cindy Yeap
Friday, 06 January 2012 12:19
Friday, 06 January 2012 12:19
KUALA LUMPUR: With yesterday’s announcement of the proposed expansion of the Resorts World New York (RWNY), Malaysia’s Genting Group appears to have won the support of New York governor Andrew Cuomo to build the largest convention centre in the US, a project that may come with a full-fledged casino licence.
Expected to cost US$4 billion (RM12.56 billion), the proposed integrated mixed-use development would expand RWNY and includes 3.8 million sq ft of convention and exhibition centre with up to 3,000 hotel rooms.
As it is, RWNY, which opened Oct 28 last year, is something of a “virtual casino”, offering only video slot machines and electronic table games via an arrangement with New York Racing Association which operates the Aqueduct Racetrack in Queens. Hence, RWNY is also known as a “racino”.
In the State of the State address where Cuomo delivered a blueprint for rebuilding New York on Wednesday, he announced the intention to make the state the No 1 convention
site in the nation with the proposed expansion at Aqueduct.
Cuomo, who is reportedly in favour of legalising casino gambling to generate new revenue for New York state as well as create more jobs, also said New Yorkers could also approve a constitutional amendment to have Atlantic City-styled casinos outside Indian reserve land.
“Let’s amend the constitution so that we can do gaming right,” he said in the speech, pointing out that over US$1 billion of economic activity could be generated from gaming within the state.
While Genting was named as the partner for the convention centre in the speech, Cuomo did not specify who would be granted a full-fledged casino licence if such amendments
were made.
In a statement to Bursa Malaysia yesterday yesterday, Genting Malaysia said wholly-owned unit Genting New York LLC (Genting NY) had on Tuesday entered into a non-binding
agreement with the New York State Urban Development Corp for the proposed development, and would work closely with the latter’s business entity, Empire State Development
Corp, to have a binding agreement by Nov 30 this year.
The proposed project will replace The Jacob Javits Convention Centre on Manhattan’s West Side and reportedly will be larger than Chicago’s McCormick Place, currently the largest convention centre in the US. The 18-acre Javits Centre site will become a mixed used facility to revitalise New York City’s West Side.
Genting Malaysia shares rose to a one-month high of RM3.93 intra-day after the news before closing at RM3.89 yesterday, up one sen or 0.26%. Its parent, Genting Bhd, rose to RM11.18 intraday, but ended unchanged at RM11.14 while Genting Singapore shed three cents or 1.9% to S$1.53 (RM3.73) yesterday.
Genting owns about 54% of Genting Singapore Ltd, 48.3% of Genting Malaysia and 18% of Genting Hong Kong Ltd, which houses Resorts World Manila.
It remains to be seen if Genting will get similar support in Florida, where the group has announced plans for a US$3.8 billion bayfront Resorts World Miami, complete with hotels, convention space, retail and recreational space, but is missing a casino licence.
Florida lawmakers are slated to discuss a gaming bill that could pave the way for the award of up to three casino-resort licences on Monday afternoon, according to the Senate session calendar.
Genting officials have won some local support with its promise of bigger revenue streams and higher job creation for Miami, but faces opposition from bigwigs like Florida’s
Orlando-based Walt Disney Co, as well as other community groups who still see casinos as a vice-filled industry linked to thug-like debt-collectors, prostitution and money laundering.
Clearly, the US — where there are some 23 million able but jobless workers — is quickly turning out to be an increasingly sizeable market for the Genting group as well as controlling owners, the Lim family, who through their private vehicle Kien Huat Realty Sdn Bhd, is among pioneer investors in Indian tribal gaming.
Coupled with the over US$580 million Genting has already spent on RWNY so far, the US$4 billion planned expansion, will match the US$4.7 billion that Genting has invested in Resorts World Singapore, the group’s biggest investment thus far.
In Britain, where Genting Malaysia via Genting UK is already the largest casino operator, works are underway for a £120 million (RM586.31 million) Resorts World @ NEC in Birmingham that could be ready by late-2013 or early-2014.
At the time of writing, Genting had not provided a timeline for the US$4 billion potential capital expenditure (capex) in New York. For Miami, the US$3.8 billion planned capex is over a period of 10 years, and will be spent faster if it gets a casino licence.
Prior to the latest US$4 billion planned capex for New York, analysts had estimated that the existing RWNY “racino” could potentially shore up Genting Malaysia’s annual earnings by 10% with the UK operations possibly giving another 5% boost.
Melvyn Boey, who heads Southeast Asia research for Bank of America-Merrill Lynch (BoA-ML) in Singapore, said he wouldn’t be overly concerned over Genting’s expansion moves for as long as its balance sheet can support debt levels.
“I’d only worry if net gearing goes above 50% and stays at that level,” Boey told The Edge Financial Daily in a recent interview.
Boey calculates that Genting Highlands in Malaysia generates “easily RM1 billion free cash flow (FCF) a year, with very little capital expenditure requirement”.
He also sees Genting Singapore steadily generating about S$1.5 billion FCF a year from FY13. “In FY12, the number is already S$1.3 billion and that will grow as capex tapers off,” said Boey, who has tracked Genting since the 1990s.
Even so, details on its planned capex would likely allay any concerns investors may have. Even as capex tapers off across the causeway, talks are that Genting Singapore is looking to invest some of its newly minted cash in Japan, where gaming laws may be liberalised to aid the economy.
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