Headline Outperform rating for KLCCP amid REIT plans MediaTitle New Straits Times Date 10 Apr 2013 Language English Circulation 136,530 Readership 330,000 Section Business Times Page No B1,2 ArticleSize 380 cm² Journalist N/A PR Value RM 37,050
Outperform rating for KLCCP amid REIT plans may listing: Potential RM15.4b assets, RM12b market cap expected to draw investors
KUALA LUMPUR KUALA LUMPUR sued prior to the EGM, the company The sheer size of KLCC Prop erty Holdings Bhd's new unit, KLCCP Stapled Group, will stated its intention to pay out 95 per make it a stock that fund managers will want to hold, a research house said. cent of its 2013 distributable income, CIMB Research said fund man agers will not be able to ignore KL CCP Stapled's RM15.4 billion assets and over RM12 billion market cap in line with CIMB Research's fore erty Holdings Bhd's new unit, italisation. KLCCP Stapled is the country's first ever stapled real estate invest cast. KLCCP Stapled Group, will ment trust (REIT) and is due to be listed in early May. CIMB Research said investors make it a stock that fund managers should accumulate KLCC Property's The firm is not surprised by the shares upon requotation on the will want to hold, a research house stock exchange as a stapled group in early May. This is because KLCC shareholders' approval as investors Property will easily be Malaysia's said. largest REIT by asset value and market capitalisation with a had responded well to the proposal, portfolio size that is three times CIMB Research said fund man that of the current leader Sunway REIT. Shareholders' approval on the for going by the 27 per cent rise in KLCC agers will not be able to ignore KL mation of KLCCP Stapled should act as a catalyst for KLCC Property, the firm added. Property's share price since the pro CCP Stapled's RM15.4 billion assets "We maintain our 'outperform' rating while raising our target price because we think that news of the posal was announced in November and over RM12 billion market cap shareholders' approval will catalyse italisation. the stock. last year. KLCCP Stapled is the country's "Further catalysts are the poten "We believe that KLCCP Stapled first ever stapled real estate invest tial transfer of assets like Suria deserves to trade at least in line ment trust (REIT) and is due to be with the bigger cap retail REITs listed in early May. KLCC and Kompleks Dayabumi CIMB Research said investors to the REIT, which could mean such as IGB REIT and Pavilion should accumulate KLCC Property's higher dividends as tax savings shares upon requotation on the REIT. stock exchange as a stapled group can be returned to shareholders," "This is due to its sheer asset size in early May. This is because KLCC CIMB said in its research note yes of RM15.4 billion, largest market cap, Property will easily be Malaysia's terday. largest REIT by asset value and most prime location in Kuala market capitalisation with a KLCC Property's shareholders ap Lumpur city centre, bestinclass as portfolio size that is three times proved all the resolutions put for that of the current leader Sunway set quality (the iconic Twin Towers), REIT. ward at the extraordinary general best tenant (Petronas) and lowrisk Shareholders' approval on the for meeting (EGM) held on Monday, profile," it said. mation of KLCCP Stapled should act which paved the way for it to form as a catalyst for KLCC Property, the The REIT's low gearing ratio of firm added. KLCCP Stapled. 15 per cent means that it has less "We maintain our 'outperform' In the circular to shareholders is than RM5 billion debt headroom for
sued prior to the EGM, the company rating while raising our target price stated its intention to pay out 95 per cent of its 2013 distributable income, in line with CIMB Research's fore cast. because we think that news of the The firm is not surprised by the any acquisition opportunities before shareholders' approval as investors had responded well to the proposal, going by the 27 per cent rise in KLCC Property's share price since the pro posal was announced in November last year. shareholders' approval will catalyse "We believe that KLCCP Stapled deserves to trade at least in line hitting the 50 per cent statutory lim with the bigger cap retail REITs the stock. it. Headline Outperform rating for KLCCP amid REIT plans MediaTitle New Straits Times Date 10 Apr 2013 Language English Circulation 136,530 Readership 330,000 Section Business Times Page No B1,2 ArticleSize 380 cm² Journalist N/A PR Value RM 37,050
CIMB Research says further catalysts are the potential transfer of assets like Suria KLCC to the REIT, which could mean higher dividends as tax savings can be returned to shareholders.