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Business Times
11-05-2025
- Business
- Business Times
Industrial S-Reits report NPI growth, but managers are cautious on outlook
SINGAPORE real estate investment trusts (S-Reits) with exposure to the industrial sub-segment have mostly reported growth in net property income (NPI) in the quarter ended March. The resilient operating performance comes as industrial S-Reits report stable occupancies and positive rental reversions in the most recent quarter. However, the Reit managers are more cautious on the outlook – with greater emphasis on tenant retention and cost management – given the challenging macroeconomic environment affected by global tariffs and trade uncertainty. Of the seven S-Reits that focus on the industrial sub-sector, three reported full-year results in the latest earnings season, while the others provided updates on their first-quarter performance. Mapletree Industrial Trust 's (MINT) distribution per unit (DPU) for FY25 ended March, rose 1 per cent to S$0.1357, on the back of higher gross revenue and NPI. The growth was driven by revenue contributions from the Osaka Data Centre and an acquisition in Tokyo, in addition to new leases and lease renewals of Singapore properties. However, MINT's manager said that higher property operating expenses and elevated borrowing costs may continue to exert pressure on distributions. It will adopt cost-mitigating measures and focus on tenant retention to maintain a stable portfolio occupancy level. Mapletree Logistics Trust (MLT) reported stable operating performance with 96.2 per cent occupancy and 5.1 per cent positive rental reversions in its fourth quarter. However, NPI slipped 1.6 per cent amid lower revenue contributions from China, absence of contributions from divested properties and a weakening of regional currencies against the Singapore dollar. 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 MLT's manager expects tenants to take a cautious approach to leasing and expansion amid global trade tensions, and its top priorities include ensuring tenant retention, portfolio resilience and cost management. It estimates that around 15 per cent of portfolio revenue comes from tenants that are engaged in export businesses. Elsewhere, Aims Apac Reit also reported stable portfolio occupancy and 20 per cent positive rental reversions for FY25. DPU grew 2.6 per cent to S$0.096 for the full year. The manager noted that the trust's healthy balance sheet with gearing of 28.9 per cent provides ample headroom to fund future growth initiatives and new acquisitions. Similarly, ESR Reit posted S$82.5 million in NPI for Q1 2025, a 31.3 per cent increase on year, mainly due to full-quarter contributions from acquired properties, completion of asset enhancement initiatives (AEIs) and higher contributions from existing properties. Distributable income (DI) increased 7 per cent on year to S$44.2 million in Q1 2025. The manager expects NPI and DI to increase in FY25, given full-year contributions from completed acquisitions and AEIs, and positive rental reversions. Sabana Industrial Reit reported 15.3 per cent positive rental reversion in Q1, continuing on four successive years of double-digit positive rental reversion. NPI rose 22 per cent to S$16 million, led by higher gross revenue. The Reit's manager noted that performance is expected to be challenged by disruptions in global trade and significant cost pressures from the potential imposition of US tariffs, and it remains focused on optimising portfolio occupancy. Daiwa House Logistics Trust (DHLT) reported a 2.7 per cent increase in NPI for its overall portfolio in Singapore dollar terms during Q1, mainly due to the acquisition of D Project Tan Duc 2, partially offset by weaker Japanese yen and lower contribution from Japan. DHLT's manager noted that trade tariffs have resulted in economic uncertainty globally, and it is monitoring the potential impact. Less than 10 per cent of DHLT's Japan tenants by gross rental income are involved in exporting of goods, while the property in Vietnam is anchored on a long 20-year lease that expires in 2043. Phillip Securities analysts noted last month that S-Reits in the industrial sub-sector may face a medium impact from higher tariffs, as manufacturing may decline, especially for tenants with cross-border activities. However, they added that reshoring or near shoring could boost local industrial demand. The analysts remain overweight on S-Reits as the sector is relatively resilient in a downturn, given that tenants are contractually required to pay rent. They noted that the sector could start benefiting from interest rate savings in 2025 and 2026. SGX RESEARCH The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the monthly S-Reits & Property Trusts Chartbook.
Yahoo
24-02-2025
- Business
- Yahoo
4 Singapore Stocks Breaking New All-Time Share Price Highs: Should You Buy Them?
Warren Buffett, arguably one of the world's best investors, remarked that 'when the business does well, the share price will follow'. Hence, investors should follow the business closely to see if it manages to increase its revenue and profits. By doing so, its share price should then follow to hit new highs. We highlight four Singapore stocks whose share prices recently touched their all-time highs to determine if you should include them in your buy watchlist. United Overseas Bank, or UOB, is Singapore's third-largest bank by market capitalisation. Shares of UOB recently hit their all-time high of S$39.20 and are up 31.6% in the past year. The lender reported a robust set of earnings for 2024 with total income rising 3% year on year to S$14.3 billion. Operating profit inched up 1% year on year to S$8.2 billion while net profit stood at S$6 billion, up 6% year on year and at a record high. In line with the good results, UOB announced an increase in its final dividend from S$0.85 to S$0.92, taking its 2024 full-year dividend to S$1.80 per share. Meanwhile, the bank also announced a S$3 billion package to return surplus capital and reward its shareholders. This package comprises a special dividend of S$0.50 (to be paid in two tranches) to mark the lender's 90th anniversary. A new S$2 billion share buyback programme was also launched to acquire shares from the open market and then cancel them. CEO Wee Ee Cheong is optimistic about 2025 and projects high single-digit loan growth along with double-digit fee income growth. Centurion owns, develops, and manages a portfolio of 34 operational accommodation assets totalling around 66,660 beds as of 30 September 2024. These comprise purpose-built workers accommodation (PBWA) and purpose-built student accommodation (PBSA) assets across Singapore, Malaysia, the UK, the US, Australia, and China. Centurion's share price has been on a tear, shooting up 137% in the past year to hit its all-time high of S$1.06 recently. The group reported a commendable business update for the first nine months of 2024 (9M 2024). Revenue jumped 25% year on year to S$186.5 million, led by a 27% year-on-year revenue increase for its PBWA assets and a 20% year-on-year improvement in revenue for its PBSA assets. Both high occupancy and positive rental reversions helped to boost its 9M 2024 financial performance. Centurion has several asset enhancement initiatives (AEIs) underway in Malaysia and is exploring opportunities for the potential development of approximately 7,000 beds in Nusajaya in Iskandar, Johor. Last month, Centurion announced that it was exploring a REIT listing for its PBWA and PBSA assets but noted that this idea was still at the exploratory stage. The group also released a positive profit guidance for its 2024 full-year results which will be released on 26 February. Oiltek provides a comprehensive range of refinery processes and engineering solutions for the vegetable oils industry value chain. The group has 44 years of track record and has successfully designed, built, and commercialised plants in more than 35 countries across five continents. Oiltek's share price soared 416% in the past year and hit its all-time high of S$1.35. For 2024, revenue climbed 14.5% year on year to RM 230.3 million while gross profit surged 40.4% year on year to RM 55.1 million. Net profit leapt 55% year on year to RM 29.6 million. The group declared a final dividend of S$0.018, higher than the previous year's S$0.016. Coupled with the interim dividend of S$0.009, the total dividend for 2024 amounted to S$0.027. Oiltek is confident of its prospects and is optimistic about the long-term outlook of the edible & non-edible oil refinery sector. The global fats and oil market is projected to surpass US$402.9 billion by 2033 and will register a compound annual growth rate of 4.6% from 2024 to 2033. The group's order book was approximately RM 354.9 million with total orders of RM 207 million snagged in 2024. Singapore Technologies Engineering, or STE, is an engineering and technology group serving customers in the aerospace, smart city, and defence sectors. Shares of STE have rallied nearly 30% in the past year and hit their all-time high of S$5.13 recently. The group reported encouraging numbers for its third quarter of 2024 (3Q 2024) business update. For 9M 2024, revenue rose 14% year on year to S$8.3 billion, driven by year-on-year revenue increases across all three of its divisions. A total of S$8.3 billion of contracts were secured in 9M 2024, with S$2.2 billion snagged in 3Q 2024 alone. STE's order book stood at S$26.9 billion as of 30 September 2024. Earlier this month, the group announced that it had secured S$4.3 billion of contracts for 4Q 2024. Investors should be eagerly awaiting STE's full-year results which will be released on 27 February before the market opens. Global trade tensions and rising tariffs are causing market volatility, but smart investors know how to stay ahead. Join our free webinar, 'Your Secret Weapon To Fight The Tariff War,' to learn how you can protect your portfolio and generate steady income, even in uncertain times. Click here to sign up for free now! Ready to discover the next $100 billion stock? Our newest FREE report dives deep into five popular SGX companies that many say are the next big thing. Read our team's findings to guide your investment strategy. Click the link here to download now. Follow us on Facebook and Telegram for the latest investing news and analyses! Disclosure: Royston Yang does not own shares in any of the companies mentioned. The post 4 Singapore Stocks Breaking New All-Time Share Price Highs: Should You Buy Them? appeared first on The Smart Investor.
