OCBC Report 7 Mar 14

KEY IDEA Soilbuild REIT: In a sweet spot Soilbuild Business Space REIT’s (Soilbuild REIT) recent 4Q13 results have beaten both ours and its prospectus forecasts. In the year ahead, we are positive that Soilbuild REIT’s performance will remain resilient, given its young portfolio age and strong specifications. We also believe Soilbuild REIT may continue to benefit from the bright spot of the otherwise lackluster industrial market, thanks to its significant exposure to the business park space. According to CBRE, outlook for the business and science park segment remains optimistic in 2014, with demand expected to be supported by better macroeconomic fundamentals and continued expansion of office occupiers in the decentralized areas. We maintain BUY and S$0.85 fair value on Soilbuild REIT. (Kevin Tan)

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NEWS HEADLINES - US stocks finished Thu generally higher, with the S&P 500 index closing at a record level for the 50th time in the past 12 months. - The constituents of the Straits Times Index will remain unchanged following a quarterly review. - The Singapore Tourism Board has forecast visitor arrivals to grow to between 16.3m and 16.8m this year, and tourism receipts to be in the range of S$23.8b to S$24.6b. - The overall median cash-over-valuation for resale HDB flats hit ground zero last month, compared with S$3,000 in Jan, as demand for resale public homes softened. - Jardine Strategic Holdings' FY13 net profit has fallen 7% on the back of weaker sales. - Lian Beng Group yesterday bought a 5.026% stake in Centurion Corporation for S$21.7m, forging a closer relationship with the dormitory provider. - Global Logistic Properties announced it would be acquiring a portfolio of 34 assets in Brazil from Brazilian real estate developer BR Properties for 3.18b Brazilian real (S$1.74b).