Stocks to watch: CICT, CapitaLand Ascendas Reit, Lendlease Global Commercial Reit, Frasers Hospitality Trust, Sunpower
CapitaLand Integrated Commercial Trust : The trust posted a 3.5 per cent rise in distribution per unit (DPU) to 5.62 cents for the first half of 2025. This rise was largely due to the six-month contribution from ION Orchard, better performance from existing properties and lower interest expenses from lower gearing and an easing interest rate environment. Revenue dipped 0.5 per cent to S$787.6 million, while net property income fell 1.7 per cent to S$579.9 million. The counter closed 2.28 per cent or S$0.050 up on Monday (Aug 4) at S$2.240.
CapitaLand Ascendas Reit : The industrial property player posted a 0.6 per cent drop in DPU for the first half of the 2025 financial year, down to S$0.07477, on the back of an enlarged unit base. The unit base grew 0.7 per cent year on year. The Reit also posted a 2 per cent lower H1 revenue at S$754.8 million due to the divestment of five properties in Australia, Singapore and the US, and the decommissioning of a property in the UK for redevelopment in June 2024. Its units closed Monday up 2.2 per cent or S$0.06 at S$2.80, before the results were released.
Lendlease Global Commercial Reit : The Lendlease Global Commercial Reit posted a 1.8 per cent increase in DPU for the first half of FY2025. The higher DPU was due to better performance of its Singapore properties and lower finance costs, said the Reit's manager on Monday. Revenue rose 1.9 per cent to S$102.9 million, while net property income was 2.7 per cent higher at S$73.8 million. The Reit's units closed Monday 2.7 per cent or S$0.015 higher at S$0.565, before the financial statements were released.
Frasers Hospitality Trust : The trust posted mixed results across its markets on Monday for the third quarter ended June. RevPAR fell by between 1.2 per cent and 5.6 per cent in Singapore, Australia and Malaysia. On the other hand, RevPAR rose 17.6 per cent in Japan, and 0.1 per cent in the United Kingdom. The average daily rate increased 8.3 per cent year on year, mainly due to weakness in the transient and corporate segment, but there was a 4 percentage occupancy improvement to 73 per cent for its Singapore portfolio for the quarter. Units of Frasers Hospitality Trust rose 0.7 per cent or S$0.005 to S$0.705 on Monday, before the results were published.
Sunpower : The environmental protection solutions provider received 135.2 million yuan (S$24.2 million) in biomass subsidies from the state grid corporation of China. This was for biomass electricity generated through the Xintai Project from April 2023 to December 2024. The subsidies were granted under China's policy to support renewable energy development. The group said on Tuesday that it plans to build artificial intelligence-powered thermal and steam pipeline networks and expand into renewable and alternative energy development. Shares of Sunpower closed Monday flat at S$0.23.
Dasin Retail Trust : Its subsidiary Zhongshan Yuanxin Commercial Property Management could face legal action if it fails to make full repayment of offshore liabilities within a five-day window starting from Aug 1, when it was issued a letter from an offshore facility agent. The letter said Zhongshan had, among other things, breached the terms of an intercreditor deed, by making an unauthorised loan repayment that resulted in its outstanding onshore loans falling below a minimum required amount. Units of Dasin Retail Trust have been suspended from trading.
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Straits Times
3 days ago
- Straits Times
IPO for Centurion's new Reit at ‘very advanced' stage, launch likely in September
Sign up now: Get ST's newsletters delivered to your inbox SINGAPORE - If all goes well, Centurion Corp may launch the initial public offering (IPO) of its new real estate investment trust (Reit) as soon as September, said chief executive officer Kong Chee Min. At the group's results briefing on Aug 8, Mr Kong said the upcoming IPO was at a 'very advanced stage', though the group has yet to receive its eligibility-to-list letter from the Singapore Exchange. He added that Centurion was 'quite committed' to the trust, named Centurion Accommodation Reit, and will have 'quite a high stake' in it. The group had previously said in the Reit's announcement last month that it will hold around a 45 per cent stake in the trust initially, before lowering its interest to 35 to 40 per cent. That is not to say Centurion will be divesting more assets; instead, the aim is to expand its portfolio and assets under management, noted Mr Kong. This means Centurion, as the sponsor, will continue developing assets and will wait for them to stabilise before injecting them into the Reit, he said. The trust will also independently seek to acquire completed assets from other owners looking to monetise. For now, the Reit will comprise 14 properties: five purpose-built worker accommodation (PBWA) assets in Singapore, eight purpose-built student accommodation assets in Britain and one in Australia. Mr Kong said Centurion's Malaysia assets will not be included in the Reit, given the emerging market risk, but that the listco will continue expanding its portfolio in the country. Top stories Swipe. Select. Stay informed. Singapore PM Wong calls on S'poreans to band together for nation to remain exceptional in National Day message Opinion Singapore must look ahead, prepare to ride next wave of change Singapore Four foreign leaders to attend NDP 2025 at the Padang Singapore NDP 2025: No ticket, no problem – here are some spots to soak up National Day vibes Singapore Non-invasive depression treatment TMS has helped engineer get his life back Business Singapore's digital banks trim deposit rates, mirroring moves by incumbent players Singapore Chief Justice allows founder of site that ran fake KKH story to be called to the Bar Singapore Chief Justice names law graduate who wanted anonymity after being denied Bar admission 'I would say that the performance (in Malaysia) is not too bad, except for the currency,' he explained. 'We are pretty confident that this is only short-term headwinds.' In terms of asset class, Mr Kong said the Reit will lean heavily towards PBWA assets. With land being scarce in Singapore, and growth dependent on government tenders, Centurion is actively working with the authorities to identify suitable land for such assets, said the CEO. 'I think there are four remaining sites (up for tender)... and we will take the opportunity to tender (for them) when they become available,' he added. Opportunities abound At the results briefing, Centurion communications head David Phey highlighted strong demand for PBWA assets in multiple countries. This includes existing markets, such as Singapore and Malaysia, as well as other potential markets in the Middle East, including the United Arab Emirates and Saudi Arabia. Demand in these markets has also outpaced the supply of purpose-built, professionally managed, good-quality workers' dormitories, said Mr Phey. On the student housing front, Mr Phey noted that investment appetite for such assets remains strong, especially in the United Kingdom. Annual investment in the UK alone rose by 14 per cent to almost £4 billion (S$6.9 billion) in 2024, on the back of 'very positive underlying fundamentals' with a shortage of beds across cities. This brought Centurion's revenue for the first half-year of FY2025 to $140.7 million, up 13 per cent from $124.4 million in the corresponding year-ago period. Net profit, on the other hand, fell 38 per cent to $73.9 million, weighed down by net fair value loss on investment properties – at $3.5 million – from a net fair value gain of $61.6 million in the year-ago period. Distribution, administrative and finance expenses also shot up by 39 per cent, 22 per cent and 8 per cent, respectively. Earnings per share consequently dropped to $0.0879. Meanwhile, net asset value per share was $1.44 as at end-June. Net gearing ratio fell to 27 per cent, which will give the group ample 'firepower' to support future developments and acquisitions, said Mr Kong. Looking ahead, Mr Phey said the group will continue looking for development opportunities in existing markets, as well as new markets such as the Middle East. 'At the same time, we'll look for capital recycling and reallocation to drive growth, and very much focus on pushing for asset-light models,' he said. 'We expect more moderate rental reversions – flatter, but still growing – and we will continue to practise financial prudence in managing against possible economic uncertainties, such as trade war impacts.'
Business Times
3 days ago
- Business Times
IReit Global sees risk of losing potential lawsuit as ‘remote', takes no action for now
[SINGAPORE] The manager of IReit Global does not plan to take any steps to mitigate the impact of a potential lawsuit from its main tenant for now, citing the 'remote' chance of the case succeeding. If the dispute proceeds, however, it could take 'several years' to resolve. The manager of the Europe-focused real estate investment trust (Reit) was commenting on the possible litigation involving Deutsche Rentenversicherung Bund (DRV), the main tenant of its Berlin Campus asset, during the briefing on Friday (Aug 8) of the Reit's financial results for the first half of the year. DRV is seeking a partial repayment of dilapidation costs amounting to 8.4 million euros (S$12.6 million), out of a contractually agreed 15.5 million euros, for what it claims are 'unjustified' charges. The claim represents about 1.6 per cent of IReit's net asset value and 11.1 per cent of gross revenue for FY2024. 'We have yet to even receive a payment order from the court, so there's nothing much to talk about,' said Kevin Tan, the manager's chief financial officer. DRV had sent a legal letter to IReit's subsidiaries on Jun 12, to which a formal response rejecting the claim was sent on Jun 25. The Berlin Campus is being repositioned from a single-use property to a mixed-use, multi-let asset. The manager is in talks with two potential office tenants and aims to secure a long-term lease of at least 20 years without a break option from one of them by the first quarter of 2026. The manager's chief executive officer Peter Viens said that once a tenant is secured, the Reit plans to divest at least half the asset to fund the remaining capital expenditure without issuing new securities. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The planned divestment is also in line with IReit Global's strategy to reduce its exposure to the office sub-sector from more than 80 per cent currently to around 50 per cent of its portfolio. Viens noted that the office sub-sector in Europe has 'suffered' in performance since the Covid-19 pandemic. He added that the manager is exploring the sale of its remaining office assets in Germany, as well as some in Spain, as part of its rebalancing plans. At the same time, IReit Global will increase its exposure to the retail sub-sector, which Viens described as providing 'one of the best combinations of diversification and performance'. He noted that brick-and-mortar retail properties have remained resilient despite the growth of online shopping during the pandemic. On Thursday, IReit Global posted a 26 per cent fall year on year in distribution per unit (DPU) to 0.71 euro cent for the half-year of FY2025 ended June mainly due to the absence of rental income from the Berlin Campus under repositioning. Revenue decreased by 27.5 per cent to 26.6 million euros, and net property income slid 33.3 per cent to 18 million euros. IReit Global units were unchanged at S$0.295 on Friday.
Business Times
4 days ago
- Business Times
Ireit Global DPU drops to 0.71 euro cent for H1 due to Berlin vacancy
[SINGAPORE] Ireit Global posted a 26 per cent fall year on year in distribution per unit (DPU) to 0.71 euro cent for the half-year of FY2025 ended June because of the full vacancy at the Berlin campus. Revenue decreased by 27.5 per cent to 26.6 million euros (S$39.8 million) while net property income slid 33.3 per cent to 18 million euros, the regulatory filing by the manager of the Europe-focused real estate investment trust (Reit) on Thursday (Aug 7) showed. The drop was mainly due to the full vacancy at Berlin Campus from Jan 1, 2025, and the absence of other income from the dilapidation cost paid by the main tenant at the property in the corresponding period of FY2024. Consequently, income to be distributed to unitholders at 9.5 million euros was 26 per cent lower, and this was after the retention of 10 per cent of income for working capital and capital expenditure. However, earnings per unit was higher at 0.05 euro cent, compared with 0.02 euro cent for the year-ago period, as total return attributable to unitholders was impacted by net change in fair values of financial derivatives and investment properties. Net asset value per unit was unchanged at 0.39 euro cent as at end June, against end-December 2024. Ireit Global Group, the Reit manager, said it has initiated discussions with the incumbent banks regarding the refinancing of the German and Spanish properties, and expects to finalise the agreements by the third quarter of 2025, thereby pushing the next earliest debt maturity to July 2027. Ireit Global units were unchanged at S$0.295 on Thursday, before the Reit manager published the financial results.
