Latest news with #CLAR
Yahoo
4 days ago
- Business
- Yahoo
4 Singapore REITs to Watch Out for in June
The REIT sector continues to be a reliable source of dividends for income investors who are seeking to navigate a complex macroeconomic landscape. Although the asset class was beset by the twin challenges of inflation and elevated interest rates, things are looking up. Interest rates have moderated, and inflation has declined significantly from its high in 2022. Meanwhile, REIT managers have been active in reconstituting their portfolios and are engaging in capital recycling activities to improve their portfolios. Here are four Singapore REITs you should keep an eye out for in June. CapitaLand Ascendas REIT, or CLAR, is Singapore's oldest industrial REIT and also one of the largest industrial REITs listed on the Singapore Exchange (SGX: S68). The REIT released an encouraging business update for the first quarter of 2025 (1Q 2025). Portfolio occupancy stood at 91.5%, and the portfolio also enjoyed a positive rental reversion of 11%. During the quarter, CLAR completed the sale and leaseback acquisition of a Class A modern logistics property for S$153.4 million. A redevelopment at Science Park Drive was also completed for S$300 million. The REIT also saw two asset enhancement initiatives (AEIs) completed, one in the US and the other in Singapore. Just last week, CLAR announced the acquisition of two properties in Singapore – a data centre at 9 Tai Seng Drive, and a business space property at 5 Science Park Drive. Both properties are fully occupied, with the data centre sporting a net property income (NPI) yield of 7.2% and the business space property having a 6.1% NPI yield. These acquisitions will help to solidify the REIT's Singapore footprint and enhance the quality of CLAR's portfolio. The purchases should also translate into a 1.36% accretion to distribution per unit (DPU) for the REIT. Moreover, there is the potential for rental uplift as 9 Tai Seng Drive has room for capacity expansion. For 5 Science Park Drive, the existing rent is around 15% below market rates, allowing for future positive rental reversion. Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 141 properties spanning 25.2 million square feet of net lettable area. MIT's portfolio was valued at S$9.1 billion as of 31 March 2025. In the middle of May, the REIT entered into a sale and purchase agreement to sell three industrial properties in Singapore for S$535.3 million to Brookfield Asset Management (NYSE: BAM). These three properties, named The Strategy, The Synergy, and the Woodlands Central Cluster, were at a 2.6% premium to the properties' independent valuations of S$521.5 million. It was also a 22.1% increase from these properties' original cost of S$438.4 million. The Strategy and The Synergy had occupancy rates of 82.1% and 71.6%, respectively, while Woodlands Central boasted a higher occupancy rate of 95.5%. These divestments should be completed by 3Q 2025. MIT's rationale for the sale was to strengthen its capital structure and improve its financial flexibility for future investments while realising the capital appreciation on these properties. Manulife US REIT, or MUST, is an office REIT with a portfolio of eight freehold properties in the US with a total NLA of 4.1 million square feet. The office REIT agreed to sell its Peachtree Class A office building in Georgia for a gross consideration of around US$133.8 million. MUST will receive around US$118.8 million in net proceeds, which will be used to make an early repayment of its 2026 loans. With this repayment, around 78% of its total debt due in 2026 will be repaid. This sale also allows MUST to achieve 82% of its net sales proceeds target under the Master Restructuring Agreement (MRA), enabling the beleaguered office REIT to negotiate a recovery path with its lenders. The REIT had already divested Capitol in California and Plaza in New Jersey as part of its progress in repaying its loans. With this divestment, MUST's pro-forma aggregate leverage should improve from 60.8% to 57.7%, with its pro-forma weighted average cost of debt reduced from 4.53% to 4.07%. This disposal means that the REIT's portfolio will now comprise seven properties with an NLA of around 3.5 million square feet. Elite UK REIT owns mostly freehold properties in the UK and is the largest provider of infrastructure to the Department for Work and Pensions (DWP) and other UK government departments. As of 31 December 2024, the REIT had an AUM of more than S$2 billion. Elite UK REIT reported an encouraging set of earnings for 1Q 2025 as revenue inched up 0.6% year on year to £9.3 million. NPI shot up 24.4% year on year to £10.4 million because of a one-off lease surrender premium and dilapidation settlement. Excluding this, NPI would have increased by 4.9% year on year to £8.7 million. DPU increased by 9.6% year on year to £0.0076. With its expanded investment mandate, the manager plans to reposition two of its properties. The first is Lindsay House in Dundee, a vacant asset that can be repositioned into a purpose built-student accommodation (PBSA). The conversion will use the property's existing structure, which will reduce project costs and accelerate the asset's time-to-market. The expected opening of this PBSA is September 2027. The other asset is a site in Blackpool, which can be developed into a potential data asset development. Elite UK REIT has submitted the planning permission for this site, which is now in its final stages. Looking to create a lifelong income stream? Check out our report, '7 Singapore Blue-Chip Stocks That Can Pay You for Life.' We uncover a powerful lineup of dividend-paying stocks with the reliability and growth potential you need in today's market. Don't miss out on these dependable picks. Download your copy now and start building a secure financial future! Follow us on Facebook and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of Mapletree Industrial Trust and Singapore Exchange. The post 4 Singapore REITs to Watch Out for in June appeared first on The Smart Investor.
Yahoo
29-05-2025
- Business
- Yahoo
Unlock Higher Yields: 3 Data Centre REITs Set for Dividend Hikes This Year
Of all the REIT subsectors, retail and industrial have held up best over the past few years. Within the industrial sub-sector, the data centre space offers tantalising opportunities for investors. The surge in digitalisation, along with higher demand for cloud computing services, has contributed to the growth of this asset class. Income investors can gain exposure to data centres by purchasing REITs that are either pure-play data centre REITs or through REITs with data centres within their portfolios. Here are three Singapore data centre REITs that look well-positioned for higher dividends this year. CapitaLand Ascendas REIT, or CLAR, is Singapore's oldest industrial REIT. Its portfolio includes 226 properties spread across Singapore (65%), the US (12%), Australia (13%), and the UK/Europe (10%). CLAR's total assets under management (AUM) stood at S$16.9 billion as of 31 March 2025, and around 8% of its AUM comprises data centres located in Singapore and the UK. The industrial REIT reported a commendable set of earnings for 2024 despite the twin headwinds of inflation and high interest rates. Gross revenue rose 2.9% year on year to S$1.52 billion while net property income (NPI) increased by 2.6% year on year to S$1.05 billion. The REIT's distribution per unit (DPU) inched up 0.3% year on year to S$0.15205. For the first quarter of 2025 (1Q 2025) business update, CLAR reported a positive rental reversion of 9% for 1Q 2025. This was slightly lower than the prior year's positive rental reversion of 11.4%. Overall, CLAR reported a positive rental reversion of 11% for its portfolio. The REIT also has ongoing projects that are undergoing development, redevelopment or refurbishment to improve the quality of the portfolio. These projects, costing a total of S$498.4 million, will be progressively completed from 3Q 2025 to 1Q 2028. CLAR maintained a high portfolio occupancy of 91.5% as of 31 March 2025 with moderate gearing of 38.9%, allowing the REIT to continue acquiring yield-accretive properties using debt financing. Keppel DC REIT is a data centre REIT with a portfolio of 24 data centres across 10 countries. As of 31 March 2025, the REIT's total AUM stood at approximately S$4.9 billion. Keppel DC REIT's 1Q 2025 results packed a punch as it was the only REIT to report a double-digit year-on-year increase in its DPU. Gross revenue jumped 22.6% year on year to S$102.2 million while NPI shot up 24.1% year on year to S$88.1 million. Finance income was boosted by its Australian data centre note, climbing 40.1% year on year to S$3.9 million. DPU increased by 14.2% year on year to S$0.02503. Keppel DC REIT maintained a high portfolio occupancy of 96.5% and also enjoyed a positive rental reversion of 7% for the quarter. The manager plans to rely on acquisitions in the target markets of Japan, South Korea, and Europe as a driver of its AUM and DPU. With aggregate leverage at just 30.2%, this leaves significant debt headroom for the data centre REIT to conduct yield-accretive acquisitions. Management identified artificial intelligence (AI) as an enduring trend that should boost demand for data centres serving AI inference workloads. With positive rental reversions and the continued strong demand for data centres, Keppel DC REIT should do well in the medium term. Digital Core REIT, or DCR, is also a data centre REIT with a portfolio of 11 data centres spread across the US, Canada, Frankfurt (Germany), and Osaka (Japan). The REIT's AUM stood at US$1.7 billion as of 31 December 2024. DCR reported an encouraging set of financial results for 1Q 2025. Revenue leapt nearly 80% year on year to US$44.2 million, largely because of acquisitions conducted in the past year. NPI climbed 41.8% year on year to US$22.4 million while distributable income rose 9.9% year on year to US$11.7 million. The REIT enjoyed a very high portfolio occupancy of 98%, and its assets are all of freehold tenure. With aggregate leverage at 38%, DCR has debt headroom of around US$438 million before it hits the mandatory 50% gearing limit. The REIT recently concluded the acquisition of a 20% stake in a second data centre from its sponsor, Digital Realty Trust (NYSE: DLR). DCR also established a US$750 million medium-term note programme to reduce reliance on bank debt and to set the stage for faster growth. The data centre REIT has a right-of-first-refusal over its sponsor's pipeline of assets worth US$15 billion. These assets have a minimum occupancy of at least 90% and do not require any material asset enhancements within two years. This healthy pipeline means that DCR could engage in more yield-accretive acquisitions in the months and years to come, helping to boost its DPU. First-time investors: We've finally released our Beginner's Guide. Read it in an afternoon, follow the principles, pick an investing style and buy your first SGX stocks within the next few hours! Click here to download it for free. Follow us on Facebook and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of Keppel DC REIT and Digital Core REIT. The post Unlock Higher Yields: 3 Data Centre REITs Set for Dividend Hikes This Year appeared first on The Smart Investor.
Business Times
29-05-2025
- Business
- Business Times
Stocks to watch: CapitaLand Ascendas Reit, Seatrium, Sembcorp, mm2 Asia, Singapore Paincare
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Thursday (May 29). CapitaLand Ascendas Reit (CLAR) : The company reported that it has raised S$500 million from a private placement of 202.4 million units priced at S$2.47 each, on Thursday. The issue price is a 5.2 per cent discount to the volume weighted average price of S$2.6059 on May 27 when it last traded. The private placement was about 4.1 times subscribed. The company has also requested for shares to continue trading on Thursday. Shares of CLAR last closed on Tuesday at S$2.61. Seatrium : Its net orderbook wins stood at S$21.3 billion as of March, the company announced on Thursday. This comprised 26 projects with deliveries extending to 2031. Projects related to renewables and green or cleaner solutions amounted to S$7.1 billion of its net order book. The counter ended on Wednesday 0.5 per cent or S$0.01 higher at S$2.06. Sembcorp : Its wholly owned renewables subsidiary Sembcorp Green Infra secured a solar energy storage hybrid project in India, the group said on Thursday. Under the project, it will supply solar power and support electricity demand for four hours per day through a 300 megawatt-hour battery energy storage system. The counter ended on Wednesday 1 per cent or S$0.07 lower at S$6.64 mm2 Asia : The media company on Wednesday entered into a sale and purchase agreement with private equity fund Hildrics Asia Growth Fund VCC to dispose of 21.02 per cent of its stake in subsidiary Vividthree Holdings for S$1.7 million. Mainboard-listed mm2 Asia currently holds about 29.9 per cent of the total issued and paid-up share capital of Vividthree. Following the proposed disposal, the company will hold about 8.9 per cent of Vividthree's total issued and paid-up share capital. Shares of mm2 Asia ended flat at S$0.009 on Wednesday. Singapore Paincare : The medical-services company has received an acquisition bid for S$0.16 a share from Advance Bridge Healthcare, a management consultancy for healthcare services. This values the company at US$25.7 million, comprising 171 million shares, and represents a premium of 27 per cent over Singapore Paincare's last traded price of S$0.126 on Monday. The company requested a trading halt on Tuesday, almost three months after it first announced via a bourse filing in March. Shares of Singapore Paincare closed flat at S$0.14 on Tuesday before the trading halt was requested.
Yahoo
13-05-2025
- Business
- Yahoo
3 Stocks Under $10 with Mounting Challenges
Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices. The bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead. Share Price: $3.46 Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products. Why Do We Steer Clear of CLAR? Products and services aren't resonating with the market as its revenue declined by 17.4% annually over the last two years Earnings per share fell by 16.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions At $3.46 per share, Clarus trades at 8.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CLAR doesn't pass our bar. Share Price: $7.99 Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage. Why Do We Think EXPI Will Underperform? Sluggish trends in its transactions suggest customers aren't adopting its solutions as quickly as the company hoped Subpar operating margin of -0.3% constrains its ability to invest in process improvements or effectively respond to new competitive threats Push for growth has led to negative returns on capital, signaling value destruction eXp World's stock price of $7.99 implies a valuation ratio of 18x forward P/E. Read our free research report to see why you should think twice about including EXPI in your portfolio, it's free. Share Price: $5.35 Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ:APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications. Why Does APLD Fall Short? Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution Applied Digital is trading at $5.35 per share, or 9.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than APLD. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
Clarus (CLAR): Buy, Sell, or Hold Post Q4 Earnings?
Clarus's stock price has taken a beating over the past six months, shedding 24.8% of its value and falling to a new 52-week low of $3.30 per share. This was partly due to its softer quarterly results and might have investors contemplating their next move. Is now the time to buy Clarus, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Despite the more favorable entry price, we're cautious about Clarus. Here are three reasons why CLAR doesn't excite us and a stock we'd rather own. Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Clarus grew its sales at a weak 2.9% compounded annual growth rate. This fell short of our benchmarks. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Sadly for Clarus, its EPS declined by 16.2% annually over the last five years while its revenue grew by 2.9%. This tells us the company became less profitable on a per-share basis as it expanded. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Over the last few years, Clarus's ROIC has unfortunately decreased significantly. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. Clarus falls short of our quality standards. Following the recent decline, the stock trades at 10.3× forward price-to-earnings (or $3.30 per share). This valuation tells us a lot of optimism is priced in - you can find better investment opportunities elsewhere. We'd suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
