Far East Hospitality Trust

[pianist]

at 6.3 percent yield (at the high end offer price), it seems an attractive enough deal given the low interest environment.

[Musicwhiz]

*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 16, 2012
Far East Hospitality to raise $713m in IPO

FAR East Hospitality Trust is set to raise US$575 million (S$713 million) in an initial public offering after pricing it at the top end of an indicative range, sources said, making it the local bourse's second-largest offering this year.

Far East, which owns hotels and serviced residences, drew strong demand from institutional investors attracted by its yield and exposure to Singapore's buoyant tourism sector.

"It's still a yield play in the market now. People are looking for something stable and anything beyond 5 per cent looks attractive," said Maybank Kim Eng Securities analyst Ong Kian Lin.

The trust plans to sell stapled securities at 93 cents each, representing the top of an indicated 86-93 cent range, two sources with direct knowledge of the matter said. Stapled securities are two different types of securities sold together to investors as one.

Based on the offer price, Far East expects its distribution yield this year to be 6 per cent, said its prospectus. This compares with an average of 5.5 per cent across Singapore real estate investment trusts. The sector has risen 23.5 per cent so far this year, outperforming Straits Times Index's 15 per cent gain, as investors seek stable income amid market volatility.

Far East plans to sell 329.4 million stapled securities to institutional and public investors and a total of 376.3 million units to cornerstone investors.

The offering also has an over-allotment option of 65.9 million units. It will be Singapore's second-largest offering this year after hospital operator IHH Healthcare, which listed in Singapore and Malaysia last month after raising US$2.1 billion.
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[brattzz]

NTUC Income Co-operative??!

:O

[Kelvin]

NTUC Income Co-operative??!

:O

For par fund.

[KopiKat]

IPO Prospectus

Some figures,

Price : $0.93
DPU : FY12 = 2.32ct (Forecast Period : 1-Aug-12 to 31-Dec-12 but actual entitlement based on Listing Date) ; FY13 = 5.83ct
Yield : FY12 = 5.99% ; FY13 = 6.269%
NAV = $0.93
Aggregate Leverage : 30.5%
Assets : 7 Hotels + 4 Serviced Apts in Singapore
Major Shareholder cum sponsor : 56% (51.9% if Over-Allotment exercised in full)
Close : 23 Aug 12 12 noon
Listing : 27 Aug 12 2pm

---

Comparables

CDL H-Trust (Hotels) : Yield = 5.938% @ $1.93 ; Gearing = 25.2% ; NAV = $1.60
AscottREIT (Serviced Apts) : Yield = 7.56% @ $1.195 ; Gearing = 39.7% ; NAV = $1.42
AHTrust (Hotels - all overseas) : Yield = 7.786% @ $0.875 ; Gearing = 34.3% ; NAV = $0.814

[Nick]

I think we must bear in mind that CDL H-Trust has a 90% payout rule for its distributable income. A similar 100% payout will result in 6.6% yield.

(Not Vested)

[KopiKat]

Balloting results,

[Image: 2ury2rq.jpg]

- 14.6x subscribed for Public Offer (50,000,000)
- Stabilizing (Over-Allotment) for max 30 days = 65,873,000
- Listing on 27 Aug 12 (Mon) 2pm

[Contrarian]

TIKAM AND GOT LUCKY...

[Liubei]

got 1 lot.....should consider luck...

[KopiKat]

The show starts in ~5mins @ 2pm...Enjoy!

~ Twice no. of units / asset size of AH-Trust

Looks set to open higher than IPO price of $0.93. My screen shows $0.98 pre-open (but can change, leading towards 2pm)

Perhaps cos' Sponsor is retaining >50% + Cornerstone another 20%+ of units ... Or investors prefer S'pore assets?