OUE H-Trust

[KopiKat]

IPO Prospectus lodged on 18-Jul-13

INDICATIVE OFFERING TIMETABLE
18 July 2013 6.00 PM: Opening date and time for the Public Offer
23 July 2013 12.00 PM: Closing date and time for the Public Offer
25 July 2013 2.00 PM: Commencement of trading of the Stapled Securities on the SGX-ST

Offer Price : $0.88
NAV = $0.903
Aggregate Leverage = 33.2%

DPU / Yield
FY13 = 4.77ct (1-Apr-13 to 31-Dec-13 ; Actual Payout will be prorated from Listing date) ; Annualised Yield = 7.36% (assume 1-Jul-13 List Date) / 7.15% (using full year DPU)
FY14 = 6.57ct ; Yield = 7.46%

NPI Breakdown : Hotel 73% (42% Fixed ; 31% Variable) + Retail 27%
Asset Value Breakdown : Hotel 69% + Retail 31%

Shareholders (pg89)
OUE 47.9% / 42.7% (if over-allotment option exercised)
CS 9.6%
Other Cornerstone 9.3%
- Goldhill
- Mr Gordon Tang
- Lucille Hldgs
- Splendid Asia Macro Asia Fund

[stam]

IPO Prospectus lodged on 18-Jul-13

INDICATIVE OFFERING TIMETABLE
18 July 2013 6.00 PM: Opening date and time for the Public Offer
23 July 2013 12.00 PM: Closing date and time for the Public Offer
25 July 2013 2.00 PM: Commencement of trading of the Stapled Securities on the SGX-ST

Offer Price : $0.88
NAV = $0.903
Aggregate Leverage = 33.2%

DPU / Yield
FY13 = 4.77ct (1-Apr-13 to 31-Dec-13 ; Actual Payout will be prorated from Listing date) ; Annualised Yield = 7.36% (assume 1-Jul-13 List Date) / 7.15% (using full year DPU)
FY14 = 6.57ct ; Yield = 7.46%

NPI Breakdown : Hotel 73% (42% Fixed ; 31% Variable) + Retail 27%
Asset Value Breakdown : Hotel 69% + Retail 31%

Shareholders (pg89)
OUE 47.9% / 42.7% (if over-allotment option exercised)
CS 9.6%
Other Cornerstone 9.3%
- Goldhill
- Mr Gordon Tang
- Lucille Hldgs
- Splendid Asia Macro Asia Fund

seems like the 2 hotels in the trust have less than 50 yrs lease left.

[KopiKat]

seems like the 2 hotels in the trust have less than 50 yrs lease left.

From the OUE thread,

price $0.88-0.90
99 yrs lease from 1957=> 43 years remaining.
NAV ard 90c so depreciation p.a. is ard 2.1c p.a.

@ a fwd yield of 7%, this implies DPU of ard 6.3c
taking away the depreciation, the actual returns is only 4.2c per unit so 4.7% p.a.

so out of this 7% yield, 33% of it is actually just capital redemption.

BTW, it's not 2 hotels. Mandarin Gallery is something like a mall...

[stam]

seems like the 2 hotels in the trust have less than 50 yrs lease left.

From the OUE thread,

price $0.88-0.90
99 yrs lease from 1957=> 43 years remaining.
NAV ard 90c so depreciation p.a. is ard 2.1c p.a.

@ a fwd yield of 7%, this implies DPU of ard 6.3c
taking away the depreciation, the actual returns is only 4.2c per unit so 4.7% p.a.

so out of this 7% yield, 33% of it is actually just capital redemption.

BTW, it's not 2 hotels. Mandarin Gallery is something like a mall...

Sorry, thanks for the clarifications.

[DP28]

When it comes to IPO, popularity outweighs fundamental of the co.

3 compelling reason for not vesting despite its attractive yield..
1) OUE structured as a stapled securities, yields are non guaranteed
2) 3 huge IPO in 2 weeks (krisenergy, sph REIT and oue h trust)
3) Riady family not as simple as it is

private placement allocation in oc is 30% and above.. You decide.

[greengiraffe]

Definitely agree with you on factor #3. My years of experience with Auric Pacific left me with my eyes wide open. Cash shell, formerly known as Cold Storage, with a trading arm and Sunshine Bakeries - nothing came out of it and cash pile continued to dwindle.

Needless to say, over the years - the food hamper that was handed out at AGM shrunk to nothing now.

I really don't want to rub shoulders with this family. I think even Malaysian Tanjong boss AK also don't have much positives to say with former partners.

OUE
Cert Holder

When it comes to IPO, popularity outweighs fundamental of the co.

3 compelling reason for not vesting despite its attractive yield..
1) OUE structured as a stapled securities, yields are non guaranteed
2) 3 huge IPO in 2 weeks (krisenergy, sph REIT and oue h trust)
3) Riady family not as simple as it is

private placement allocation in oc is 30% and above.. You decide.

[lonewolf]

When it comes to IPO, popularity outweighs fundamental of the co.

3 compelling reason for not vesting despite its attractive yield..
1) OUE structured as a stapled securities, yields are non guaranteed
2) 3 huge IPO in 2 weeks (krisenergy, sph REIT and oue h trust)
3) Riady family not as simple as it is

private placement allocation in oc is 30% and above.. You decide.

#1 is not true. Its a stapled securities comprising of a REIT and a dominant business trust. The assets are held in the REIT structure so its guaranteed in the sense that like all REIT, its must distribute 90% of its net income to enjoy tax concession.

CDL-HTrust and Far East HTrust has a similar structure. A-Htrust on the other hand has assets in the business trust. So A-Htrust will be an interesting case study in years to come.

#2 Agree to a certain extend but I think there's enough liquidity to absorb all 3.

No comments on #3.

Interesting thing about the private placement. You mention allocation of 30% but I've heard that there are application of 500 lots with nothing being allocated. Of cos that could be because the broker may be rather junior and not allocated a lot to begin with.

[KopiKat]

#1 is not true. Its a stapled securities comprising of a REIT and a dominant business trust. The assets are held in the REIT structure so its guaranteed in the sense that like all REIT, its must distribute 90% of its net income to enjoy tax concession.

CDL-HTrust and Far East HTrust has a similar structure. A-Htrust on the other hand has assets in the business trust. So A-Htrust will be an interesting case study in years to come.

Dormant..

[wsreader]

Looks like funds from unsuccessful sph reits ipo application will not be returned in time for oue h-trust application.

I wonder what is the rush to list one day after a popular ipo? lesson learnt for future ipo aspirants.

[DP28]

@ Lonewolf. Thanks for clarification, I just find OUE hybrid tougher to value weighing on which is the key drivers of the trust, The REIT may just be actually a small component of the entire structure hence public may perceive this as a heavy weighted REIT.

OUE allocation of 30% compared to SPH 5% at UOB, 2.2% at OCBC and 0.2% at DBS. Its clear which is the favorite, I've heard SPH may not run up as mostly are cornered out by instiutional.

To be safe, I go for the popular one. Just my opinion..

Vested for SPH REIT.