Latest news with #DerekTan
Business Times
23-05-2025
- Business
- Business Times
The best is yet to be for Tengah property prices, say DBS analysts
[SINGAPORE] Property developers such as GuocoLand could benefit from a potential rise in home prices near popular primary schools, particularly in emerging areas like Tengah New Town. Still, DBS Group Research cautioned in a report, titled 'Primary school premium: Fact or Fiction?', that price appreciation also depends on factors such as transport access, tenure, and project attributes. DBS analysts Tabitha Foo and Derek Tan said in the report, published on Thursday (May 22), that some primary schools are more popular than others because of historical ties valued by parents who are alumni, or their specialised programmes, the school culture, or proximity to home. Under Singapore's school balloting system, children living nearer oversubscribed schools are given higher priority for admission, which has prompted some parents to buy homes nearby to boost their child's chances of a place, they added. 'This 'proximity advantage' could make nearby properties more attractive to parents seeking to maximise their admission priority,' they said. However, while properties within 1 or 2 km of such schools generally appreciate more in price than their district averages, the trend is not consistent across all locations, the analysts noted. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up For instance, the analysts said that a study of a sample of popular schools found that homes near Catholic High School and CHIJ St Nicholas Girls' School registered compound annual growth rates that were generally over 5 per cent – higher than their respective district averages. In contrast, properties near Singapore Chinese Girls' School and Rosyth School recorded more mixed results; some projects near these schools underperformed their surrounding districts. The analysts said that while moving closer to a popular school is 'one of the key factors driving potential price appreciation', it is also important to consider other factors. These include entry timing and price, proximity to MRT stations, lease tenure, the age of the project, the availability of multiple primary schools, and other development attributes. These considerations, they noted, may explain the variation in price trends across different school zones, despite similar proximity advantages. Looking ahead, the analysts said the upcoming Tengah New Town could be a development to watch, particularly with Anglo-Chinese School (Primary) School planning to relocate there by 2030. While the analysts said it is still early to quantify the impact the school's relocation will have on property prices in Tengah, they observed that the town is rapidly developing with numerous Build-To-Order launches, as well as the award of multiple Executive Condominium sites. DBS' report cited the awarding of a recent private condominium land parcel in Tengah to GuocoLand, Hong Leong Holdings and CSC Land Group in January under the Government Land Sales programme. The 25,458.4-square-metre site on Tengah Garden Avenue is zoned 'Residential with Commercial at 1st storey', and can potentially yield about 860 residential units. GuocoLand, which announced its results in February for its first half-year ended Dec 31, 2024, noted steady demand for its residential developments in Singapore. The property developer reported a net profit of S$74.6 million for H1, up 13 per cent from S$66.2 million in the year-ago period. The group attributed the improved performance to its main business engines: property investment and property development.
Business Times
23-05-2025
- Business
- Business Times
School proximity may boost home prices – but not everywhere: DBS report
[SINGAPORE] Property developers such as GuocoLand could benefit from a potential rise in home prices near popular primary schools, particularly in emerging areas like Tengah New Town. Still, DBS Group Research cautioned in a report, titled 'Primary school premium: Fact or Fiction?', that price appreciation also depends on factors such as transport access, tenure, and project attributes. DBS analysts Tabitha Foo and Derek Tan said in the report, published Thursday (May 22), that some primary schools are more popular than others because of historical ties valued by parents who are alumni, or their specialised programmes, the school culture, or proximity to home. Under Singapore's school balloting system, children living nearer oversubscribed schools are given higher priority for admission, which has prompted some parents to buy homes nearby to boost their child's chances of a place, they added. 'This 'proximity advantage' could make nearby properties more attractive to parents seeking to maximise their admission priority,' they said. However, while properties within 1 or 2 km of such schools generally appreciate more in price than their district averages, the trend is not consistent across all locations, the analysts noted. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up For instance, the analysts said that a study of a sample of popular schools found that homes near Catholic High School and CHIJ St Nicholas Girls' School registered compound annual growth rates that were generally over 5 per cent – higher than their respective district averages. In contrast, properties near Singapore Chinese Girls' School and Rosyth School recorded more mixed results; some projects near these schools underperformed their surrounding districts. The analysts said that while moving closer to a popular school is 'one of the key factors driving potential price appreciation', it is also important to consider other factors. These include entry timing and price, proximity to MRT stations, lease tenure, the age of the project, the availability of multiple primary schools, and other development attributes. These considerations, they noted, may explain the variation in price trends across different school zones, despite similar proximity advantages. Looking ahead, the analysts said the upcoming Tengah New Town could be a development to watch, particularly Anglo-Chinese School (Primary) School planning to relocate there by 2030. While the analysts said it is still early to quantify the impact the school's relocation will have on property prices in Tengah, they observed that the town is rapidly developing with numerous Build-To-Order launches, as well as the award of multiple Executive Condominium sites. DBS' report cited the awarding of a recent private condominium land parcel in Tengah to GuocoLand, Hong Leong Holdings and CSC Land Group in January under the Government Land Sales programme. The 25,458.4 sq m site on Tengah Garden Avenue is zoned 'Residential with Commercial at 1st storey', and can potentially yield about 860 residential units. GuocoLand, which announced its results in February for its first half-year ended Dec 31, 2024, noted steady demand for its residential developments in Singapore. The property developer reported a net profit of S$74.6 million for H1, up 13 per cent from S$66.2 million in the year-ago period. The group attributed the improved performance to its main business engines: property investment and property development.
Business Insider
15-05-2025
- Business
- Business Insider
DBS Remains a Hold on Prime US REIT (OXMU)
DBS analyst Derek Tan maintained a Hold rating on Prime US REIT (OXMU – Research Report) today and set a price target of $0.19. The company's shares closed yesterday at $0.14. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Tan covers the Real Estate sector, focusing on stocks such as Capitaland India Trust, Mapletree Industrial, and City Developments. According to TipRanks, Tan has an average return of -1.5% and a 44.00% success rate on recommended stocks. Currently, the analyst consensus on Prime US REIT is a Moderate Buy with an average price target of $0.20.
Business Insider
02-05-2025
- Business
- Business Insider
DBS Remains a Buy on Mapletree Industrial (MAPIF)
In a report released today, Derek Tan from DBS maintained a Buy rating on Mapletree Industrial (MAPIF – Research Report), with a price target of S$2.60. The company's shares closed last Tuesday at $1.73. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Tan is an analyst with an average return of -2.1% and a 37.50% success rate. Tan covers the Real Estate sector, focusing on stocks such as Capitaland India Trust, Mapletree Industrial, and City Developments. Currently, the analyst consensus on Mapletree Industrial is a Moderate Buy with an average price target of $1.84. Based on Mapletree Industrial's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $169.89 million and a net profit of $95.26 million. In comparison, last year the company earned a revenue of $164.23 million and had a net profit of $95.31 million
Business Times
25-04-2025
- Business
- Business Times
DBS downgrades Keppel Infrastructure Trust to ‘hold', keeps Mapletree Logistics Trust at ‘buy'
[SINGAPORE] Analysts from DBS Group Research are mixed on some real estate investment trusts (Reits) this earnings season: They have kept their 'buy' rating on logistics-focused Mapletree Logistics Trust (MLT), but have downgraded Keppel Infrastructure Trust (KIT) to 'hold'. This is amid widespread economic uncertainty – mainly from the recent US-China trade war – which risks ripple effects on their portfolios. The target prices have been lowered to S$1.55 from S$1.75 for MLT, and to S$0.45 from S$0.57 for KIT. While MLT's Q4 distribution per unit (DPU) fell by 11.6 per cent to S$0.01955, DBS' Dale Lai and Derek Tan said that it was 'well-anticipated by the market'. The analysts said in their Thursday (Apr 24) report that stripping out the Reit's divestment gains of S$27 million, compared with S$41.5 million from the year before, its core FY2025 DPU would have come in at S$0.07519, down 7.9 per cent year on year instead. 'The drop was due to lower contribution from China, divested properties and general currency weakness against the Singapore dollar, mitigated by stronger performance from the Reit's Singapore, Australia and Hong Kong properties, coupled with acquisitions,' they wrote. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Additionally, the manager of the Reit also decided to hold back from distributing its past undistributed divestment gains, in light of the market uncertainty brought about by the US-China trade war. Its leverage remained stable, but was at the higher end of the historical range at 40.7 per cent. This amounted to around S$19 million, which the analysts deemed a prudent move. They noted that the trust's leverage ratio was affected by a year-end devaluation exercise, coupled with the manager taking on more debt for acquisitions. Still, the trade war raises business uncertainties and could affect prospects in the medium term, wrote the analysts. However, MLT's exposure being substantially insulated – with 85 per cent of its portfolio revenue from domestic demand – suggests minimal impact from the tariffs, they said. At its current price, the Reit trades at a price-to-book ratio of 0.9 times and offers a yield of over 6 per cent, which is attractive, the analysts noted. 'If interest rates ease, we expect stronger allocations into S-Reits (Singapore-listed Reits), especially those with defensive sector exposure,' they added. Meanwhile, analyst Suvro Sarkar has a more 'cautious' stance on KIT, citing the concerns over the stability of distribution income. 'For a business trust like KIT, cash flows are expected to be predictable, and for a long time, they were – even during the Covid-19 period,' he wrote in an Apr 23 note. However, since 2023, cash flow has been harder to predict and its timing has been less consistent, with one-offs and adjustments. This does not make for a great reading, he warned. 'Distribution income in both 2023 and 2024 came in lower than 2022 levels, and distributions in 2023 were shored up by proceeds from 'capital optimisation' (or debt refinancing) – a trend that is concerning,' he wrote. In the company's Q1 business update released on Tuesday, a loss of S$678,000 was noted for the distribution income under the Philippine Coastal segment due to higher debt repayment of S$5.2 million. The trustee-manager noted that Q1 distributable income will fall by 31.9 per cent on the year to S$45.5 million after adjusting for one-offs as well. Looking ahead, higher-than-expected capital expenditure (capex) – of both maintenance and growth types – could again lead to volatility in distribution income. He also noticed that while the trust's balance sheet presents no immediate concerns, it is 'more stretched than before', with its gearing metrics above 40 per cent before the Philippine Coastal disposal, and are above the Monetary Authority of Singapore's guidelines for S-Reits. 'We see limited further debt headroom for growth, and KIT may need to tap the equity market for any future transactions,' he said. 'The question is – at current yields of around 10 per cent, can public equity markets be the reliable funding source KIT is looking for? And how will that affect the trust's ability to grow?' he asks. To Sarkar, though the trust is trading at a healthy yield, the weak share price performance in the year to date implies that KIT 'needs to inspire more confidence' in its ability to generate stable cash flows. As at 1.10 pm on Friday, units of KIT were trading 1.2 per cent or S$0.005 down at S$0.40. Units of MLT were trading 4.1 per cent or S$0.05 lower at S$1.16.
