COMPANY UPDATE
CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
BUY Moving to REIT will add to value
CPNRF will hold a unitholders’ meeting on August 28 to obtain approval Stock Data to convert from a PFPO into a REIT to add two assets – CentralFestival Last close (Aug 22) (Bt) 19.70 Pattaya Beach shopping mall and Hilton Pattaya hotel in South 12-m target price (Bt) 21.00 Pattaya. The Bt12.57bn maximum all-in cost will be financed entirely Upside (Downside) to TP (%) 6.60 Mkt cap (Btbn) 42.04 by debt. Our sensitivity analysis suggests this purchase will raise gross Mkt cap (US$mn) 1,265 DPU by 22% in 2018 and raise DCF by 14% to Bt24/unit. Buy at TP of Bt21.
Bloomberg code CPNRF TB Fund conversion and proposed purchase of new assets. CPNRF’s investment Reuters code CPNRF.BK committee has decided to convert CPNRF from a property fund (PFPO) to a real estate Mkt cap (%) SET 0.27 investment trust (REIT) with a swap ratio of 1:1 to facilitate the purchase of two more Sector % SET 2.07 assets. It is unable to do this as a PFPO, which limits debt and forbids a capital Shares issued (mn) 2,212 Par value (Bt) 10 increase. The unitholders’ meeting will be held on August 28; it needs a 75% ‘yes’ vote 12-m high / low (Bt) 20.8 / 17 to go ahead. If it gets the green light, the conversion will be completed by yearend in Avg. daily 6m (US$mn) 0.61 order to be eligible for a tax and fee incentive. Dividend policy (%) ≥ 90 Advantages/disadvantages of conversion. Major advantages of a REIT are: 1) it allows a capital increase and purchase of new assets, b) it allows leverage of up to 35% Price Performance of total asset value if the REIT is non-rated and 60% of total asset value if the REIT is Stock Price (Bt) rated as investment grade from 10% of net asset value (NAV) now and c) it can get a 25 20 lower cost of debt by financing via debenture (a PFPO cannot issue debentures). The 15 major disadvantage is taxes on dividends: listed companies are liable to taxes of 20% 10 5 on dividends from 0% now; tax liability for non-listed companies will go up from 10% to 0 20% and for non-residents from 0% to 10%. Only individuals will see no change, with Feb-17 Feb-16 withholding tax unchanged at 10%. Aug-17 Aug-16 Nov-16 Aug-15 Nov-15 May-17 May-16 CPNRF —Stock Price CPNRF — Rel. to SET (rebased) Acquisition target. It plans to acquire approximately 20-year leasehold rights of Source: SET, SCBS Investment Research certain portions of CentralFestival Pattaya Beach and the whole building of Hilton Pattaya, located on 22.4 rai of land in a prominent area of South Pattaya, near the Share performance “walking street” and ferry to Hua Hin. We believe these assets will benefit strongly
1M 3M 12M from the government’s Eastern Economic Corridor (EEC), a part of which will promote Absolute 5.3 11.3 (2.5) Relative to SET 5.6 10.7 (4.5) Pattaya as a prime tourist destination. It is working on developing infrastructure to Source: SET, SCBS Investment Research facilitate this, including expanding U-Tapao into an international airport and building a high-speed rail to connect three airports (Don Muang, Suvarnnabhumi and U-Tapao).
Sensitivity analysis and valuation. The acquisition value will not exceed Bt12.57bn
(including transaction expenses). This will be fully financed by debt. Our sensitivity
analysis suggests that conversion into an REIT will enable the fund to take on higher
debt at a lower interest cost via debenture issuance and to acquire the assets without
recapitalization. We estimate 2018 gross DPU will rise 22% to Bt1.62 with DCF
increasing 14% to Bt24/unit. IRR will be expanded to 7.6% from 6.7%.
BUY rating with DCF-based TP of Bt21. The strength in CPNRF’s assets is illustrated by its steady performance growth and DPU at CAGR of 6% for past decade. Based on existing assets, we calculate DCF at Bt21/unit with attractive IRR of 6.7%, higher than other alternative investments including bank deposits, government bonds and corporate debentures. Our sensitivity analysis suggests that the conversion from PFPO
to REIT and acquisition of two new assets using entirely debt will be a value accretive deal and we are BUYers. Sirikarn Krisnipat Forecasts and valuation Fundamental Investment FY Dec Unit 2015 2016 2017F 2018F 2019F Analyst on Securities Net income Btmn 2,422 2,831 2,659 3,258 3,460 (66-2) 949-1020 Distributable income Btmn 2,417 2,827 2,405 2,944 3,131 [email protected] Dividend per unit Bt/unit 1.01 1.15 1.09 1.33 1.42 DPU growth % (24.0) 14.4 (5.7) 22.4 6.4 Yield % 5.12 5.85 5.52 6.76 7.18 NAV Bt/unit 11.98 12.29 12.39 12.52 12.66 NAV growth % 5.6 2.6 0.8 1.0 1.1 Price/NAV % 164.4 160.3 159.0 157.3 155.7 Source: SCBS Investment Research
Tel. (662) 949-1000 The information in this report has been obtained from sources believed to be reliable. However, its accuracy or completeness is not guaranteed. Any opinions expressed herein reflect our Fax: (662) 949-1030 judgment at this date and are subject to change without notice. This report is for information only. It is not to be construed as an offer, or solicitation of an offer to sell or buy any www.scbs.com securities. We accept no liability for any loss arising from the use of this document. We or our associates may have an interest in the companies mentioned therein.
CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Financial statement Statement of Income (Btmn) Statement of Income (Btmn)
FY December 31 2015 2016 2017F 2018F 2019F FY December 31 2Q16 3Q16 4Q16 1Q17 2Q17 Rental and services income 3,038 3,425 3,230 3,965 4,232 Rental and services income 848 862 887 870 826 Other income 98 106 107 108 110 Other income 28 26 24 32 27 Total income 3,136 3,531 3,338 4,073 4,342 Total income 876 888 911 902 853 Cost of rental and services 124 120 113 138 148 Cost of rental and services 52 36 54 44 57 Operating income 3,012 3,411 3,225 3,935 4,194 Operating income 824 853 857 859 796 Fund expense 467 443 419 512 546 Fund expense 112 109 116 115 107 Extra income 0 0 0 0 0 Extra income 0 0 0 1 0 Finance cost 73 72 82 86 105 Finance cost 18 18 18 17 18 Net investment income 2,471 2,896 2,724 3,336 3,543 Net investment income 694 725 723 727 671 Realised gain (loss) from investment (5) (4) 0 0 0 Realised gain (loss) from investment 3 (2) (1) 0 1 Unrealized gain (loss) from investment 1,563 336 0 0 0 Unrealized gain (loss) from investment 144 124 (33) (549) 559 Net increase in net assets 4,035 3,231 2,724 3,336 3,543 Net increase in net assets 841 847 689 178 1,231 Distributable income 2,417 2,827 2,405 2,944 3,131 Distributable income 697 723 722 727 672 DPU (Bt) 1.01 1.15 1.09 1.33 1.42 DPU (Bt) 0.27 0.31 0.30 0.29 0.27
Balance Sheet (Btmn) Balance Sheet (Btmn)
FY December 31 2015 2016 2017F 2018F 2019F FY December 31 2Q16 3Q16 4Q16 1Q17 2Q17 Cash and cash at banks 431 465 1,122 1,585 1,737 Cash and cash at banks 259 288 465 340 236 Investments in properties 31,790 32,309 32,899 33,149 33,549 Investments in properties 32,078 32,213 32,309 31,820 32,402 Investments in securities 386 663 0 0 0 Investments in securities 722 840 663 797 897 Total assets 32,784 33,604 34,178 34,927 35,492 Total assets 33,257 33,497 33,604 33,110 33,698 Interest bearing debt 1,936 1,875 2,219 2,514 2,691 Interest bearing debt 1,918 1,896 1,875 1,853 1,831 Total liabilities 3,542 3,611 3,931 4,367 4,603 Total liabilities 3,515 3,508 3,611 3,589 3,593 Fund registered 24,406 24,406 24,406 24,406 24,406 Fund registered 24,406 24,406 24,406 24,406 24,406 Net Assets 29,242 29,993 30,247 30,560 30,890 Net Assets 29,742 29,989 29,993 29,521 30,104 NAVPU (Bt) 13.22 13.56 13.67 13.81 13.96 NAVPU (Bt) 13.44 13.55 13.56 13.34 13.61
Cash Flow Statement (Btmn) Assumptions
FY December 31 2015 2016 2017F 2018F 2019F FY December 31 2015 2016 2017F 2018F 2019F Chg. in investment value (314) (192) (590) (250) (400) Occupancy rate (%) Increase in operation 2,889 2,699 3,307 3,362 3,507 - Rama II 93.9 86.4 86.0 87.0 87.0 Net operating cash flow 2,575 2,508 2,717 3,112 3,107 - Rama III 90.9 89.5 50.0 93.0 93.0 Distribution to unitholders (2,428) (2,412) (2,405) (2,944) (3,131) - Pinklao 53.1 93.0 95.0 95.0 95.0 Net financing cash flow (2,447) (2,474) (2,060) (2,649) (2,955) - Pinklao Office 97.0 91.3 90.0 90.0 90.0 Capital raising 0 0 0 0 0 - Chiang Mai Airport 96.6 94.6 95.0 95.0 95.0 Net cash flow 431 465 1,122 1,585 1,737 Net leasable area ('000 Sqm) - Rama II 88.0 87.7 87.6 87.6 87.6 - Rama III 37.3 37.3 37.3 37.3 37.3 Key Financial Ratios - Pinklao 28.0 27.8 27.8 27.8 27.8 FY December 31 2015 2016 2017F 2018F 2019F - Pinklao Office 33.8 33.8 33.8 33.8 33.8 Operating margin (%) 99.1 99.6 99.8 99.2 99.1 - Chiang Mai Airport 37.5 37.9 37.6 37.6 37.6 Net income margin (%) 81.4 84.5 84.3 84.1 83.7 Debt/NAV (%) 6.6 6.3 7.3 8.2 8.7 ROE (%) 8.5 9.7 9.0 10.9 11.5 ROA (%) 7.5 8.6 8.0 9.6 10.0 Payout ratio (%) 92.1 92.1 90.1 90.4 90.4 Dividend Yield (%) 5.1 5.9 5.5 6.8 7.2
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CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Fund conversion and proposed purchase of new assets CPNRF’s investment committee, comprised of SCB Asset Management Co., Ltd. and Central Pattana PLC (CPN), the sponsor of the assets in which CPNRF has invested, has resolved to: 1) convert CPNRF, a property fund (PFPO), to CPN Retail Growth Leasehold REIT (CPNREIT), a real estate investment trust (REIT), via a swap ratio of 1:1; and 2) invest in two more assets. According to SEC rules, CPNRF, as a PFPO, is not allowed to increase capital in order to make any further investment in immovable property after December 31, 2013. The investment committee will hold the unitholders’ meeting on August 28 to approve this proposal. If approved, it expects conversion to be completed by end-2017 in order to eligible for a government tax and fee incentive (Figure 3) and then acquire the new assets within a year after approval. It will need a 75% ‘yes’ vote to go ahead. Figure 1: Existing PFPO structure Figure 2: CPNREIT structure
Source: CPNRF Source: CPNRF Figure 3: Tax waiver for conversion of PFPO into REIT (valid until Dec. 31, 2017) Transaction cost Normal tax scheme Waiver Leasehold registration fee 1.0% of lease value 0.01% (no exceed Bt100,000) Stamp duty 0.1% of lease value Waived Value added tax (VAT) 7.0% of asset value Waived Payment in kind to PFPO unit Unclear (could be 35% for Waived holders with REIT units individual and 20% for juristic persons) Source: SEC, CPNRF Target acquisitions The CPNRF investment committee proposes to acquire approximately 20-year leasehold rights of some portions of CentralFestival Pattaya Beach and the whole building of Hilton Pattaya. The proposed acquisition value will not exceed Bt12.57bn including relevant expenses, which means no more than Bt11.908bn net of relevant expenses when looking at the appraised value of Bt10.423bn by Sims Property Consultant Co., Ltd and Bt10.610bn by Quality Appraisal Co., Ltd. The acquisition will be funded solely by debt, thus will not involve a capital call. The assets are on 22.4 rai of land in South Pattaya near Pattaya beach, “walking street” and the ferry to Hua Hin. Pattaya is in the area outlined for the Eastern Economic Corridor (EEC) project. The government hopes to promote Pattaya as a prime tourist destination. Over 2018-2022, it plans to invest Bt1.5tn in developing the infrastructure, including expanding U-Tapao airport into an international airport, building a high-speed rail to connect the three primary airports (Don Muang, Suvarnnabhumi and U-Tapao), expand Laem Chabang seaport, and double-track the current single-track railway. These developments will bring more traffic to CentralFestival Pattaya Beach and Hilton Pattaya.
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CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Figure 4: Details of proposed acquisition CentralFestival Pattaya Beach Hilton Pattaya
General information Opened in January 2009 Opened in November 2010 6-storey shopping mall with a 21-storey hotel (with rooftop) basement 302 hotel rooms (49,114 sqm) More than 350 retail outlets Occupancy rate 89% Occupancy rate 97% Average room rate Bt5,586/night Average rental rate Bt1,540/sqm/mth Investment structure Approximately20-year leasehold Approximately 20-year leasehold rights of part of retail space from of hotel building from CPN CPN: Pattaya, a subsidiary of CPN. Leasable area 29,404 sqm Hotel room area 15,182 sqm (56% of the project) (302 rooms) Common area 14,706 sqm Others* 33,932 sqm Service area 11,055 sqm Total area 49,686sqm In-building parking 14,930 sqm * Other facilities include the (774 cars, 56% of the total) “Grand Ballroom”, 3 meeting Total area 70,095sqm rooms, a boardroom, 4 restaurants (1 rooftop), a spa, Approximately 20-year leasehold swimming pool and fitness center. rights of utilities system lease: CPNREIT will sub-lease to SPV electrical system, telephone system, with a term of 3+3+3 years elevator, escalator systems, air- Rent structure: conditioning system, engineering Fixed rent stepped up 3.5% system and other related assets pa, starting from Bt210mn Ownership in movable assets Variable rent = 90% x (EBITDA – maintenance reserve -Fixed rent) Note that variable rent will not exceed 50% of fixed rent Average appraisal value Bt7.172bn Bt3.345bn
Sims Property Consultant Co., Ltd. Bt7.137bn Bt3.286bn Quality Appraisal Co., Ltd. Bt7.207bn Bt3.403bn Expiry date August 31, 2037 August 31,2037
Property manager CPN Hilton Group Source: CPNRF Figure 5: Hilton Pattaya structure
Sponsor (CPN Group)
Approximately 20 Years Upfront Proceed Lease of Hotel Assets Hotel Management Rental Fee Services
CPNREIT SPV Sub-Lease Hilton Hotel Pattaya Management Fee 3+3+3 years* Hotel Operator
Source: CPNRF * Assuming CPNREIT invests on January 1, 2018
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CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Figure 6: Asset location Figure 7: EEC vision
Source: CPNRF Source: Ministry of Industry CentralFestival Pattaya Beach: The asset will comprise net leasable area of 29,404 sqm, or 56% of the mall, which will raise the fund’s net leasable area by 13% to 253,626 sqm. This will give CPNRF more diversification in terms of mall location and tenant mix. CentralFestival Pattaya Beach is touted as a one-stop lifestyle shopping mall with a full range of leading domestic and international retailers and has consistently had a high occupancy rate of 97-99% that has allowed it to raise rents at a 5% CAGR in 2014-1Q17. Figure 8: Tenant mix Figure 9: High occupancy rate and growing rent Vacancies Others 3% Btmn Revenue Bt/Sqm/Mth 5% Electronics and 700 1,600 decoration Avg. rent (Bt/Sqm/Mth) 7% 600 1,500 Entertainment 500 38% 400 Food and Drink 1,400 18% 300
200 1,300 100
- 1,200 Fashion, health 2014 2015 2016 1Q17 and beauty 29% Occupancy 98% 99% 98% 97% Source: CPNRF Source: CPNRF Hilton Hotel: The asset comprises of 302 luxury hotel rooms that front onto the beach, with easy access to shops, restaurants and other attractions. It is located immediately above CentralFestival Pattaya Beach. With its ocean and Pattaya bay views and world class hotel management by Hilton Group, the hotel operated at a high occupancy rate of 83-92% during 2014-1Q17, well above the industry average of 69-76%. Figure 10: Customer mix Figure 11: High occupancy rate and growing rent
Btmn Revenue Bt/Sqm/Mth 1,000 6,500 Chinese Avg. rent (Bt/Sqm/Mth) 27% 800
Others 6,000 600 42% 400 5,500 200
Thai - 5,000 12% 2014 2015 2016 1Q17 USA Korea Hilton's OR 83% 89% 89% 92% Industry 69% 75% 76% n.a. 9% 10% Source: CPNRF Source: CPNRF 5
CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Advantages/disadvantages of conversion Advantages. The major advantages for unitholders from conversion to REIT are: New asset acquisition is allowed with wider investment types both in Thailand and overseas and investments can be in underlying assets or an indirect investment in a fund Higher leverage from 10% of NAV to 35-60% of total assets, raising DPU and valuation Recapitalization is allowed, expanding market cap and trading liquidity Disadvantages. The major disadvantage is higher tax rates on dividends for all unitholders except individuals, which is unchanged. Listed company: from 0% to 20% (full corporate income tax rate) Non-listed company: from 10% (50% corporate income tax deduction if holding three months pre and post book closing date to full rate) to 20% (full corporate income tax rate) Non-resident: from 0% to 10% withholding tax Figure 12: Major differences between PFPO and REIT Issue PFPO REIT Investment policy Thailand only Thailand and offshore Investment allowed for certain Investment is allowed in income-generating underlying underlying asset and into a properties (retail, warehouse, fund office, hotel, serviced apt) Property investment only Invest in in-progress project if upon 80% completion funding to complete is not over 10% of total asset value Sub-lease not allowed Sub-lease allowed
Leverage Not to exceed 10% of NAV No more than 35% of total asset value for non-rated REIT and 60% for investment grade REIT No debt financing at IPO Debt financing allowed at IPO Debenture not allowed Debenture allowed Lease structure Material lease-and-leaseback Lease-and-leaseback structure is structure is not permitted permitted
Fund/REIT management PFPO is managed by asset Sponsor can take REIT manager management company under SEC role regulations VAT entity VAT entities VAT entities (effective May 24, 2017)
Transaction cost for freehold* Special business tax 3.3% Special business tax 3.3% Transfer fee 0.01% Transfer fee 2.0% VAT 7.0% VAT 7.0% (effective May 24, 2017)
Transaction cost for leasehold Registration fee 1.0% Registration fee 1.0% Stamp duty 0.1% Stamp duty 0.1%
Dividend tax Listed company 0.0% Listed company 20.0% Non-listed company 10.0% Non-listed company 20.0% (corporate income tax cut 50% if held 3 mth pre and post book closing date) Non-resident 0.0% Non-resident 10.0% Individual 10.0% Individual 10.0% Recapitalization Prohibited Allow
Stakeholding by single entity No > 1/3 No > 50%
Dividend policy No < 90% of net income No < 90% of distributable income (net income-CAPEX reserve-debt repayment)
Source: SEC, CPNRF, SCBS Investment Research Note * this rule is not applicable to CPNRF 6
CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Wrap-up of performance of existing assets and outlook Growing net income and dividend for past decade. The fund’s dividend per unit (DPU) has grown at a favorable CAGR of 6% in 2006-2016, backed by a high occupancy rate of 85-99% for the past 10 years, which has allowed a 5-7% rise in rent for renewed and new contracts, thanks to CPN, the property manager, who has long experience and years of expertise in the shopping mall and office business. This is reflected in the 17% higher rise in appraised value (Bt32.4bn) for existing assets (CentralPlaza Rama II, CentralPlaza Rama III, CentralPlaza Pinklao and Tower A, B and CentralPlaza Chiangmai Airport) than in acquisition cost (Bt27.8bn). Figure 13: Rising appraised value of existing assets
Appraisal value (Btmn) Acquisition cost 2011 12,000 2012 2013 2014 2015 10,000 2016 2Q17
8,000
6,000
4,000
2,000
- Rama II Rama III Pinklao Chiangmai Source: CPNRF Growth disruption in 2017 but resuming in 2018-2019. Based on its existing portfolio, we expect DPU to slip 5% to Bt1.09 in 2017 due to major renovations at CentralPlaza Rama III in April-October this year. In 2018, however, we estimate a 22% surge in DPU to Bt1.33, followed by growth of 7% to Bt1.42 in 2019 after it reopens CentralPlaza Rama III. The revamping of the property is designed to set a new tone and with it will be a new merchandising mix, which we believe will foster a rise in occupancy rate and rent. DCF of Bt21/unit. Based on existing assets, we value CPNRF at Bt21/unit using DCF methodology. Our key assumptions are: Average 4% p.a. increase in rent and service income in line with historical performance. Drop in average occupancy rate to 83% in 2017 after which it will grow back up to 91% in 2018 and stay there. Dividend payout ratio of at least 90% of net income Discount rate of 6.75% using cost of equity (COE) assumption is based on: 1) risk free rate (RFR) of 3.5%, 2) beta of 0.5x, 3) and equity risk premium (ERP) of 6.5%. We benchmark our RFR assumption to the historic long-term bond yield, beta assumption is based on historic beta for the SET PFPO index, and ERP assumption is based on the historical SET return minus RFR. Our cash flow is based on the remaining lease contract of each asset, assuming no renewal and no terminal value.
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CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Figure 14: Growing DPU Figure 15: Sustainable high occupancy rate
Bt/unit 2019F 2018F 2017F 2016 2015 2014 2013 1.50 1.42 1.33 1.33 1.33 1.33 2012 2011 2010 2009 2008 2007 2006 1.23 1.15 1.15 1.13 1.09 Total port 1.02 1.02 1.01 1.01 0.99 0.92 0.92
1.00 0.87 0.82
0.78 Chiangmai Airport
Pinklao Tower 0.50 Pinklao Plaza
Rama III - Rama II 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 0% 20% 40% 60% 80% 100% Source: CPNRF, SCBS Investment Research Source: CPNRF, SCBS Investment Research Figure 16: Existing portfolio Unit CentralPlaza CentralPlaza CentralPlaza CentralPlaza Rama II Rama III Pinklao and Tower Chiangmai
Land (Rai-Ngan-Sq 53-2-38 12-2-45 24-02-84 32-3-56.85 Wah) Possession rights of the fund Sublease contract Lease contract Sublease contract Lease contract (30+30+30) Expiry date Aug. 14, 2025 Aug. 15, 2035 Dec. 31, 2024 Sept. 31, 2043
The fund’s portfolio Gross area (Sqm) 251,182 169,740 135,018+50,653 122,991 Leasable area (Sqm) 87,612 37,346 27,772+33,938 37,553 Leasable area/Gross area (%) 34.9 22.0 20.6+67.0 30.5 Source: CPNRF, SCBS Investment Research As of 1Q17 Accretive DPU and DCF acquisition DPU and valuation upside. Our sensitivity analysis suggests the acquisition of CentralFestival Pattaya Beach and Hilton Hotel will grow CPNREIT’s DPU by 22% to Bt1.62 in 2018. DCF is also raised by 14% to Bt24/unit and IRR expands from 6.7% to 7.6% because it will be able to use debt financing for new acquisitions, raise leverage (maximum 35% of total asset value for REIT versus 10% of NAV for PFPO) and issue a lower-cost debenture. Our assumptions for new assets are: Asset acquisition on January 1, 2018 Rental and service hike 4% p.a. for shopping mall, same as existing assets, and 5% for hotel Occupancy rate of 97% for shopping mall and 90% for hotel Cost of debt lower by 75bps to 3.25%
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CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Figure 17: DPU accretive
Bt/Unit CPNRF CPNREIT 2.5 Expiry of Pinklao Chiangmai renovation Expiry of Rama II Expiry of 2.0 Rama III renovation Pattaya 1.5
1.0
0.5
0.0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Source: SCBS Investment Research Buy rating The strength of CPNRF’s assets is exhibited in its steady performance growth and DPU at CAGR of 6% since its listing in 2005 and the steady rise in appraised value. Based on existing assets, we calculate DCF at Bt21/unit with IRR of 6.7%. Our sensitivity analysis suggests that the conversion from PFPO to REIT and acquisition of two new assets using entirely debt will add 22% to the fund’s DPU in 2018 and raise DCF by 14% to Bt24/unit. We rate this fund a BUY at a DCF target price of Bt21.
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CPN Retail Growth Leasehold Property Fund Wednesday, August 23, 2017
Disclaimer: This document is prepared by SCB Securities Company Limited (“SCBS”) which is wholly-owned by The Siam Commercial Bank Public Company Limited (“SCB”). SCB has acted as a co-financial advisor of CPN Retail Growth Leasehold Property Fund. Any opinions, news, research, analyses, prices, statements, forecasts, projections and/or other information contained in this document (the “Information”) is provided as general information purposes only, and shall not be construed as individualized recommendation of an offer to buy or sell or the solicitation of an offer to buy or sell any securities. SCBS and/or its directors, officers and employees shall not be liable for any direct, indirect, incidental, special or consequential loss or damage, resulting from the use of or reliance on the Information, including without limitation to, damages for loss of profits. The investors shall use the Information in association with other information and opinion, including their own judgment in making investment decision. The Information is obtained from sources believed to be reliable, and SCBS cannot guarantee the accuracy, completeness and/or correctness of the Information. SCBS reserves the right to modify the Information from time to time without notice and in its sole discretion. This document is delivered to intended recipient(s) only and is not permitted to reproduce, retransmit, disseminate, sell, distribute, republish, circulate or commercially exploit the Information in any manner without the prior written consent of SCBS
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AMATA, AOT, BAFS, BAY, BCP, BIGC, BTS, BWG, CK, CPF, CPN, CSL, DELTA, DEMCO, DRT, DTAC, DTC, EASTW, EGCO, GFPT, GPSC, GRAMMY, HANA, HMPRO, INTUCH, IRPC, IVL, KBANK, KCE, KKP, KTB, KTC, LHBANK, LPN, MBK, MCOT, MINT, MONO, NKI, NYT, OTO, PHOL, PPS, PS, PSL, PTT, PTTEP, PTTGC, QH, QTC, RATCH, SAMART, SAMTEL, SAT, SC, SCB, SCC, SCCC, SE- ED, SIM, SITHAI, SNC, SPALI, SSSC, STEC, SVI, TCAP, THCOM, TISCO, TKT, TMB, TNDT, TOP, TSC, TTCL, TU, UV, VGI, WACOAL, WAVE
2S, AAV, ACAP, ADVANC, AGE, AH, AHC, AKP, ALUCON, AMANAH, ANAN, AP, APCO, APCS, ARIP, ASIA, ASIMAR, ASK, ASP, AUCT, AYUD, BANPU, BBL, BDMS, BEM, BFIT, BLA, BOL, BROOK, CEN, CENTEL, CFRESH, CGH, CHG, CHO, CHOW, CI, CIMBT, CKP, CM, CNS, CNT, COL, CPI, DCC, EA, ECF, EE, ERW, FORTH, FPI, GBX, GC, GCAP, GL, GLOBAL, GLOW, GUNKUL, HOTPOT, HYDRO, ICC, ICHI, IFEC, INET, IRC, JSP, K, KSL, KTIS, L&E, LANNA, LH, LHK, LIT, LOXLEY, LRH, LST, M, MACO, MALEE, MBKET, MC, MEGA, MFC, MOONG, MSC, MTI, MTLS, NCH, NOBLE, NSI, NTV, OCC, OGC, OISHI, ORI, PACE, PAP, PB, PCSGH, PDI, PE, PG, PJW, PLANB, PM, PPP, PR, PRANDA, PREB, PRG, PRINC, PT, PTG, PYLON, Q-CON, RICHY, ROBINS, RS, RWI, S, S & J, SABINA, SALEE, SAMCO, SCG, SEAFCO, SFP, SIAM, SINGER, SIS, SMK, SMPC, SMT, SNP, SPI, SPPT, SPRC, SR, SSF, SST, STA, SUSCO, SUTHA, SWC, SYMC, SYNEX, SYNTEC, TAE, TAKUNI, TASCO, TBSP, TCC, TF, TFI, TGCI, THAI, THANA, THANI, THIP, THRE, THREL, TICON, TIPCO, TK, TKS, TMC, TMI, TMILL, TMT, TNITY, TNL, TOG, TPC, TPCORP, TRC, TRU, TRUE, TSE, TSR, TSTE, TSTH, TTA, TTW, TVD, TVO, TWPC, UAC, UP, UPF, VIH, VNT, WINNER, YUASA, ZMICO
AEC, AEONTS, AF, AIRA, AIT, AJ, AKR, AMARIN, AMATAV, AMC, APURE, AQUA, ARROW, AS, BA, BEAUTY, BEC, BH, BIG, BJC, BJCHI, BKD, BR, BROCK, BRR, BTNC, CBG, CGD, CHARAN, CITY, CMR, COLOR, COM7, CPL, CSC, CSP, CSR, CSS, CTW, DCON, DIMET, DNA, EARTH, EASON, ECL, EFORL, EPCO, EPG, ESSO, FE, FER, FOCUS, FSMART, FSS, FVC, GEL, GIFT, GLAND, GOLD, GSTEL, GYT, HPT, HTC, HTECH, IFS, IHL, ILINK, INSURE, IRCP, IT, ITD, J, JMART, JMT, JUBILE, JWD, KASET, KBS, KCAR, KGI, KKC, KOOL, KWC, KYE, LALIN, LPH, MAJOR, MAKRO, MATCH, MATI, M-CHAI, MDX, MFEC, MJD, MK, MODERN, MPG, NC, NCL, NDR, NEP, NOK, NUSA, PATO, PCA, PDG, PF, PICO, PIMO, PL, PLAT, PLE, PMTA, PPM, PRIN, PSTC, QLT, RCI, RCL, RICH, RML, RPC, SANKO, SAPPE, SAWAD, SCI, SCN, SCP, SEAOIL, SENA, SIRI, SKR, SLP, SMG, SMIT, SORKON, SPA, SPC, SPCG, SPVI, SSC, STANLY, STPI, SUC, TACC, TCCC, TCMC, TEAM, TFD, TFG, TIC, TIW, TKN, TLUXE, TMD, TNP, TOPP, TPA, TPAC, TPCH, TPIPL, TPOLY, TRITN, TRT, TTI, TVI, TWP, U, UBIS, UMI, UPOIC, UT, UWC, VIBHA, VPO, VTE, WICE, WIIK, WIN, XO Corporate Governance Report The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not base on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. SCB Securities Company Limited does not conform nor certify the accuracy of such survey result. SMG was voluntarily delisted from the Stock Exchange of Thailand effectively on June 2, 2016
Anti-corruption Progress Indicator Certified (ไดร้ บการรั บรองั ) ADVANC, AKP, AMANAH, AP, ASP, AYUD, BAFS, BANPU, BAY, BBL, BCP, BKI, BLA, BROOK, BTS, BWG, CENTEL, CFRESH, CIMBT, CM, CNS, CPI, CPN, CSL, DCC, DEMCO, DIMET, DRT, DTAC, DTC, EASTW, ECL, EGCO, FE, FNS, FSS, GBX, GCAP, GLOW, HANA, HMPRO, HTC, ICC, IFEC, INTUCH, IRPC, IVL, K, KBANK, KCE, KGI, KKP, KSL, KTB, KTC, LANNA, LHBANK, LHK, LPN, MBK, MBKET, MCOT, MFC, MINT, MONO, MOONG, MSC, MTI, NKI, NSI, OCC, OCEAN, PB, PDI, PE, PG, PHOL, PLAT, PM, PPP, PPS, PR, PRANDA, PREB, PRG, PSH, PSL, PT, PTG, PTT, PTTEP, PTTGC, Q-CON, QH, QLT, RATCH, RML, ROBINS, S & J, SABINA, SAT, SCB, SCC, SCG, SGP, SINGER, SIS, SITHAI, SMIT, SMPC, SNC, SNP, SORKON, SPC, SPI, SSF, SSI, SSSC, SVI, SYNTEC, TAE, TCAP, TCMC, TF, TFG, TGCI, THANI, THCOM, THRE, THREL, TIPCO, TISCO, TKT, TMB, TMD, TNITY, TNL, TOG, TOP, TPCORP, TRU, TSC, TSTH, TTCL, TVI, UOBKH, WACOAL Declared (ประกาศเจตนารมณ)์ A, AI, AIE, AIRA, AJ, ALUCON, AMATAV, AOT, APCO, AQUA, ARROW, ASIA, ASK, AU, BCH, BJC, BJCHI, BLAND, BR, BROCK, BRR, CEN, CGH, CHEWA, CHG, CHOTI, CHOW, CIG, COL, COM7, CPALL, CPF, CPR, CSC, EKH, EPCO, FC, FER, FPI, FSMART, GEL, GFPT, GGC, GIFT, GJS, GLOBAL, GOLD, GPSC, GREEN, GSTEL, GUNKUL, HARN, IFS, ILINK, INET, IRC, J, JMART, JMT, JUBILE, JUTHA, KASET, KBS, KCAR, KTECH, KWC, KYE, L&E, LEE, LIT, LVT, MAKRO, MATCH, MATI, MBAX, MC, MFEC, MIDA, MILL, ML, MTLS, NBC, NCL, NEP, NINE, NMG, NNCL, NTV, NUSA, NWR, OGC, PACE, PAF, PAP, PATO, PCSGH, PIMO, PK, PL, PLANB, POST, PRINC, PRO, PSTC, PYLON, QTC, ROH, ROJNA, RWI, SANKO, SAUCE, SC, SCCC, SCN, SEAOIL, SE-ED, SENA, SIRI, SMART, SPACK, SPPT, SPRC, SR, SRICHA, SST, STA, SUPER, SUSCO, SWC, SYMC, TAKUNI, TBSP, TFI, THE, TICON, TIP, TKN, TLUXE, TMILL, TMT, TNP, TPA, TRUE, TSE, TTI, TU, TVD, TVO, TVT, TWPC, U, UPA, UREKA, UWC, VGI, VIBHA, VIH, VNT, WAVE, WHA, WICE, WIIK N/A 2S, AAV, ABICO, ACAP, ACC, ADAM, AEC, AEONTS, AF, AFC, AGE, AH, AHC, AIT, AJA, AKR, ALLA, ALT, AMA, AMARIN, AMATA, AMC, ANAN, APCS, APURE, APX, AQ, ARIP, AS, ASAP, ASEFA, ASIAN, ASIMAR, ASN, ATP30, AUCT, BA, BAT-3K, BCPG, BDMS, BEAUTY, BEC, BEM, BFIT, BGRIM, BGT, BH, BIG, BIGC, BIZ, BKD, BLISS, BM, BOL, BPP, BRC, BSBM, BSM, BTC, BTNC, BTW, BUI, CBG, CCET, CCP, CGD, CHARAN, CHO, CHUO, CI, CITY, CK, CKP, CMO, CMR, CNT, COLOR, COMAN, CPH, CPL, CRANE, CSP, CSR, CSS, CTW, CWT, D, DCON, DCORP, DELTA, DIGI, DNA, DTCI, EA, EARTH, EASON, ECF, EE, EFORL, EIC, EMC, EPG, ERW, ESSO, ESTAR, ETE, EVER, F&D, FANCY, FMT, FN, FOCUS, FORTH, FTE, FVC, GC, GENCO, GL, GLAND, GRAMMY, GRAND, GTB, GYT, HFT, HOTPOT, HPT, HTECH, HYDRO, ICHI, IEC, IHL, INGRS, INOX, INSURE, IRCP, IT, ITD, ITEL, JAS, JCT, JSP, JTS, JWD, KAMART, KC, KCM, KDH, KIAT, KKC, KOOL, KTIS, KWG, LALIN, LDC, LH, LOXLEY, LPH, LRH, LST, LTX, M, MACO, MAJOR, MALEE, MANRIN, MAX, M-CHAI, MCS, MDX, MEGA, METCO, MGT, MJD, MK, MM, MODERN, MPG, MPIC, NC, NCH, NDR, NETBAY, NEW, NEWS, NFC, NOBLE, NOK, NPK, NPP, NVD, NYT, OHTL, OISHI, ORI, OTO, PAE, PCA, PDG, PERM, PF, PICO, PJW, PLE, PMTA, POLAR, POMPUI, PPM, PRAKIT, PRECHA, PRIN, PTL, RAM, RCI, RCL, RICH, RICHY, RJH, ROCK, RP, RPC, RPH, RS, S, S11, SAFARI, SALEE, SAM, SAMART, SAMCO, SAMTEL, SAPPE, SAWAD, SAWANG, SCI, SCP, SE, SEAFCO, SELIC, SF, SFP, SGF, SHANG, SIAM, SIM, SIMAT, SKR, SKY, SLP, SMK, SMM, SMT, SOLAR, SPA, SPALI, SPCG, SPG, SPORT, SPVI, SQ, SSC, STANLY, STAR, STEC, STHAI, STPI, SUC, SUTHA, SVH, SVOA, SYNEX, T, TACC, TAPAC, TASCO, TC, TCB, TCC, TCCC, TCJ, TCOAT, TEAM, TFD, TGPRO, TH, THAI, THANA, THIP, THL, TIC, TIW, TK, TKS, TM, TMC, TMI, TMW, TNDT, TNH, TNPC, TNR, TOPP, TPAC, TPBI, TPCH, TPIPL, TPIPP, TPOLY, TPP, TR, TRC, TRITN, TRT, TRUBB, TSF, TSI, TSR, TSTE, TTA, TTL, TTTM, TTW, TUCC, TWP, TWZ, TYCN, UAC, UBIS, UEC, UKEM, UMI, UMS, UNIQ, UP, UPF, UPOIC, UT, UTP, UV, UVAN, VARO, VI, VNG, VPO, VTE, WG, WHAUP, WIN, WINNER, WORK, WORLD, WP, WR, XO, YCI, YNP, YUASA, ZIGA, ZMICO Explanations Companies participating in Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) under Thai Institute of Directors (as of July 31, 2017) are categorised into: companies that have declared their intention to join CAC, and companies certified by CAC.
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