Viva Industrial Trust Initiate with BUY by OCBC

Reference from OCBC Investment Research

Viva Industrial Trust (VIT) is a Singapore-focused REIT which primarily invests in business parks and industrial real estate assets. The combined market valuation of VIT’s portfolio is S$1.2b, including its latest acquisition of 30 Pioneer Road in April, with the majority in business park assets (58.1%).

Looking ahead, we project VIT’s distributable income to increase by 27.0% in FY16 and 6.2% in FY17. DPU is expected to decrease 1.2% to 6.916 S-cents in FY16, before increasing 6.9% to 7.392 S-cents in FY17.

We value VIT using the dividend discount model (DDM) and derive a fair value estimate of S$0.75 (cost of equity: 9.0%; terminal growth rate: 0%). Based on yesterday’s closing price of S$0.705, VIT is currently trading at a forward FY16F DPU yield of 9.8% and a FY17F yield of 10.5%.

Late Post: Viva Business Park Site Survey

as many had know, one of key assets under Viva i Trust is undergoing major AEI.
use to call Chai Chee @ Technopark,
currently renamed to become Viva Business Park *nice name, thumb up*

being a shareholders of Viva I Trust,
i decided to go down and take a look since i always believe the concept of "you must know what you are buying" haha.

slide obtained from http://www.vivaitrust.com/investor_slides.html
the AEI is separated into 3 main phases
Phase 1: had completed and were fully leased *swee la
Phase 2: obtained TOP on 4th May 2016, not sure what is the status. open? fully leased?
Phase 3: will only finish in Q3 2016.

Phase one is the place where Decathlon Singapore is located and basically my gf and i walk around phase 1's area only. Saw Owl Cafe (yet to open), True Fitness's staffs prompting around the area outside Decathlon and a Dart's cafe/pub (open).

as for Decathlon, store is really huge. the store looks like some giant supermarket or Ikea, the only different is that it only sells sport related stuffs. one thing i must say is that the things they sell is really cheap. even my gf says she will come back again for the items they selling. quite a lot of people on that day (weekend). thumb up!

below are some of the pictures i took using my gf's HP.
yes i m using a non camera hp. =)