News by Alliance DBS Research

We believe net property income margins will improve once management rebrands and realigns assets.

Its strong reputation for mass rapid transit Line 1 and the project delivery partner (PDP) appointment for the Penang Transport Master Plan provide it with leverage for other large-multiplier projects such as light rail transit 3, Gemas-Johor Baru double tracking and Pan Borneo Highway Sabah.

MQREIT has the rights of first refusal to Malaysian Resources Corp Bhd’s stable of investment properties, which may carry values of up to RM1.5 billion in aggregate.

The landbank has a potential gross development value (GDV) of RM15 billion, comprising an integrated township (Eco Gardens) and a business park (Eco Business Park V) which is accessible via the Kuala Lumpur-Kuala Selangor Expressway, Guthrie Corridor Expressway and North-South Expressway.

While 75% of UEM Sunrise’s landbank is located in Nusajaya, the management is looking to diversify beyond Nusajaya. One of the options would be land swap arrangements to leverage on its large land bank in Nusajaya, which we have not priced in at this point.

Axis Real Estate Investment Trust (Axis REIT) revealed at its first half of 2015 briefing that lease renewals were going smoothly: For the 12.9% of net leasable area expiring in 2015, about 55% has been renewed at a positive average reversion rate of 7.8%.