Bloomberg - ATRM:MK
Yahoo - 5130 .kl
Webpage - http://www.atriumreit.com.my/
Key
Value Investor Criteria: -
Description
|
Value
|
Criteria
|
Point
|
Price
to Tangible Book Ratio
|
0.76*
|
<
1
|
4/5
|
Return
on Asset
|
2.54*
|
>
0
|
4/5
|
Return
on Common Equity
|
9.03*
|
>
0
|
5/5
|
Quick
Ratio
|
0.04*
|
>1
|
0/5
|
Long
term Debt / Total Capital
|
8.59*
|
<50%
|
5/5
|
Continue
Dividend over Past 10 Years / Since Inception
|
Yes
|
Yes
|
1/1
|
Historical
Dividend Yield
|
7.85%
|
>3%
|
2/2
|
Cash
From Operation
|
Positive
> 5 years
|
Positive
|
5/5
|
P/E
|
8.8
|
10
|
1/2
|
Total Point
|
27/35
|
Note:
* Data obtain from Bursa Marketplace on
28/7/2016
Company
Profile
ATRIUM
is a REIT focus on warehouses. Table below summarised the warehouse own by
ATRIUM
Warehouse
|
Occupancy
|
Tenant
|
Tenant Expired
|
Atrium
Shah Alam 1
|
100
%
|
Marelli
Asia Pacific Sdn Bhd
|
31-5-2021
|
Atrium
Shah Alam 2
|
71
%(1)
|
SSGSCL(1)
|
31-3-2019
|
Atrium
Puchong
|
73
%
|
Tiong
Nam Logistic Sdn Bhd
|
31-6-2016
|
Atrium
USJ
|
100
%
|
i)
SAF- HOLLAND
ii)
Century
iii)
20 Cube
|
i)
31-8-2017
ii)
31-12-2017
iii)
31-7-2017
|
NOTES:
1. According
to announcement make by ATRIUM on 31 March 2016, SSGSCL had rented Atrium Shah
Alam 2 phase 1 commence on 1st April 2016 and phase 2 will commence
on 1st January 2017 for 3 years
ATRIUM had long term 6
years tenancy agreement with Marelli Asia Pacific Sdn Bhd until 31st
May 2021 with will give Atrium a stable income. Besides that ATRIUM manage to
find a tenant for ATRIUM Shah Alam 2 until 31st March 2019. ATRIUM
Shah Alam 2 will be fully occupied on 1st January 2017.
However Atrium Puchong
tenant is still a temporary, the management required to find a long term tenant
for Atrium Puchong.
PROS:
|
è Long term tenancy agreement for
Atrium Shah Alam 1 will give ATRIUM a stable income
è Managed to find new tenant for
Atrium Shah Alam 2 until 31st March 2019.
|
CONS:
|
è
No
long term tenant for ATRIUM Puchong.
|
Financial
Statement
After obtaining tenant
for ATRIUM Shah Alam 2, the revenue of ATRIUM will increase and hence the
distribution income is expecting to increase more than 1.30 sen which
distributed last quarter. Besides that, the new tenant increase the long term
liability of RM 2,380,673 to RM 5,702,224 as a deposit. These deposits
indirectly increase the cash of ATRIUM as these deposit will not give back to
the tenant until the end of tenancy agreement, hence ATRIUM management can
invest the extra cash to bank deposit or other cash generating asset to
increase the income of ATRIUM.
Compared to 2014, the
cash generated from operation for 2015 had decrease from RM 13,693,208 to RM 6,723,070
these is mainly because of disposal of ATRIUM Rawang and vacant of ATRIUM Shah
Alam 2 in 2015. However the management manage to get tenant for ATRIUM Shah
Alam 2 from Q2 of 2016 will increase the cash generated from operation for the
next quarter.
With bank negara cut
the Overnight Policy Rate by 0.25% to 3.0% will reduced the financial cost of
ATRIUM when renew their short term revolving credit (STRC) of RM 39,600,000
which renew yearly. Besides that, ATRIUM had a term loan which required to paid
in one lump sum cost of RM 20,000,000 in October 2018.
PROS:
|
è New tenant for Atrium Shah Alam 2
might increase the distribution to shareholder each quarter.
è Extra RM 2,380,673 deposit to
invest in safe asset for extra income.
è Reduction of OPR by 0.25% will
reduce the financial cost of ATRIUM in the future.
|
CONS:
|
è
Cash generated for 2015 had reduce by
50.09% compared to 2014.
è
Term loan of RM 20,000,000 which
required to be paid on October 2018.
|