KUALA LUMPUR (Jan 27): KLCC Property Holdings Bhd (KLCCP) (fundamental score: 1.85; valuation score: 1.20) rose 2.5% to RM6.97 after announcing a distribution per unit (DPU) of 8.75 sen for its fourth quarter ended Dec 31 last year, which is marginally higher than 2013’s 8.71 sen.
As at 11:16 am, KLCCP had advanced 2.5% or 17 sen to RM6.97, with some 94,000 shares changing hands. It was also one of the top gainers across the local bourse in the morning.
However, Kenanga Research is maintaining its“underperform” rating on KLCCP but with a higher target price of RM6.67 from RM6.39.
“While we like the stock for its prime asset positioning, its FY15E dividend yields are slim compared to its sizeable peers’ average of 5.3%,” said Kenanga Research analyst Sarah Lim in a report today.
Lim commented that FY14 realized distributable income (RDI) of RM639 million came in within expectations, making up 95% of consensus and close to 100% of full-year estimates.
Going forward, management has indicated it is still on the look-out for potential assets, but so far nothing concrete has materialised as yet.
“Our channel checks have suggested that property sellers are becoming more realistic with asking cap rates.”
For the full financial year ended Dec 31, 2014 (FY14), the stapled securities recorded a DPU of 33.64 sen, an increase of 16.24% from 28.94 sen in 2013. This represents a historical yield of about 5%, based on its closing price of RM6.80 today.
For 4QFY14, the stapled securities raked in a total realised distributable income of RM175.36 million, an increase of 6% from RM165.47 million a year earlier. Revenue came in 4.46% higher at RM347 million from RM332.18 million.
Total realised distributable income for its full year ended Dec 31, 2014, increased 37.7% to RM639.06 million from RM464.18 million; while its revenue climbed 5.44% to RM1.35 billion, from RM1.28 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)