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Business Times
11 hours ago
- Business
- Business Times
Stocks to watch: Suntec Reit, ESR Reit, Sabana Industrial Reit, Acrophyte Hospitality Trust, Fu Yu
[SINGAPORE] THE following companies saw new developments that may affect trading of their securities on Monday (Jun 16): Suntec Reit ; ESR Reit ; Sabana Industrial Reit ; Acrophyte Hospitality Trust : ESR Group, which is the sponsor of Suntec Reit, ESR Logos Reit, Sabana Industrial Reit and Acrophyte Hospitality Trust, is expected to delist from the Hong Kong Stock Exchange on Jul 3 as its shareholders on Friday approved a scheme resolution to privatise it. The real estate fund manager received a privatisation proposal from a consortium of investors comprising Starwood Capital Operations, Sixth Street Partners, and SSW Partners in April 2024. Units of Suntec Reit ended Friday unchanged at S$1.14; units of ESR Reit ended Friday down 1.3 per cent or S$0.03 at S$2.31; units of Sabana Industrial Reit declined 2.5 per cent or S$0.01 to S$0.39 on Friday while units of Acrophyte Hospitality Trust ended Friday up 1.7 per cent or US$0.005 at US$0.295. Fu Yu : The components manufacturer announced on Sunday that all its independent directors had resigned, including Royston Tan and Christopher Huang, who is also the non-executive chairman. This comes amid attempts by Fu Yu's largest shareholder Victor Lim to oust Tan and Huang from the board. Independent director Daniel Poh also resigned over differences in opinion on the company's direction on matters not involving the day-to-day business of the company, which Tan and Huang also cited as a reason for resignation. All three quoting the investigations into Fu Yu Supply Chain Solutions as an example. Shares of Fu Yu closed down S$0.001 or 1 per cent at S$0.096 on Friday.
Business Times
a day ago
- Business
- Business Times
Diversified S-Reits' operating performance remains resilient amid market uncertainties
[SINGAPORE] Diversified real estate investment trusts (Reits) hold a mixture of assets across multiple sub-sectors such as industrial, retail, office and hospitality, offering investors the prospect of portfolio stability and flexibility. The larger diversified Reits in the Singapore market, or S-Reits, include Straits Times Index (STI) counters such as CapitaLand Integrated Commercial Trust (CICT), Mapletree Pan Asia Commercial Trust (MPACT) and Frasers Logistics & Commercial Trust (FLCT), as well as Suntec Reit , which is currently on the STI reserve list. Amid trade tensions and geopolitical uncertainties, business updates from these S-Reits for the first quarter ended March highlighted their ability to withstand headwinds. Most showed growth in revenue and net property income (NPI), driven by robust operating performance from existing properties and new acquisitions. Suntec Reit's revenue for Q1 2025 rose 3.4 per cent year on year (yoy) to S$113.5 million, due to stronger operating performance across all properties. Its joint venture income also grew. It reported a distribution per unit of S$0.01563 for the period, up 3.4 per cent yoy. CICT's Q1 2025 revenue was also higher, at S$395.3 million, by 1.1 per cent yoy on a like-for-like basis. Its NPI grew 1.4 per cent over the same period. For the first half of FY2025, FLCT's revenue was S$232.3 million, up 7.5 per cent yoy, while adjusted NPI rose 1.6 per cent to S$161.3 million. The growth was due mainly to full contributions from completed and acquired properties. 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 In terms of operating performance, the larger diversified S-Reits have demonstrated resilience. For its retail portfolio, CICT reported strong momentum in rent reversion at 10.4 per cent for Q1 2025. It expects rent reversion to remain positive, although at a more moderate pace, in the next few quarters. The Reit's office portfolio also had positive rent reversion, at 5.4 per cent. Overall portfolio occupancy was stable, at 96.4 per cent as at end-March, with the occupancy standing at 98.8 per cent for retail assets and 94.7 per cent for office properties. The manager of MPACT noted that the trust's Singapore properties continued to buffer overseas headwinds. These assets contributed to higher revenue and NPI on a comparable basis in FY2025 ended March. MPACT also reported positive rent reversion from its local properties during the year, ranging from 2.2 per cent at Mapletree Business City to 16.8 per cent at VivoCity. Similarly, Suntec Reit and OUE Reit achieved positive rent reversions from their Singapore office and retail portfolios as well. Occupancy rates across their portfolios also remained stable. Suntec Reit's Singapore office portfolio had 98.7 per cent committed occupancy, down slightly from 99.4 per cent in the year-ago period. Occupancy for its local retail assets, meanwhile, improved to 98.2 per cent from 95.8 per cent over the same period. OUE Reit saw its office committed occupancy grow 1.7 percentage points quarter on quarter to 96.3 per cent as at end-March, while committed occupancy at Mandarin Gallery climbed to 99.5 per cent. These diversified S-Reits have also been reporting improvements in terms of capital management. Suntec Reit has completed a refinancing of S$730 million due in 2025 and 2026, which would result in interest savings of about S$1.8 million each year. The manager also noted it has pared down debt with proceeds from the divestment of strata office units. Meanwhile, CICT's average cost of debt as at end-March was 3.4 per cent, down 0.2 percentage point from the level in December. OUE Reit has also reported that its proactive capital management in 2024 reduced its weighted average cost of debt to 4.2 per cent a year as at end-March, from 4.7 per cent in December. The Reit managers noted that their portfolios are well-positioned to navigate economic and geopolitical uncertainties. CICT said it remains focused on asset-enhancement initiatives and portfolio-reconstitution efforts. It will continue to monitor the market for opportunities with an eye on Singapore, which offers stability, for inorganic growth. The chief executive officer of Suntec Reit's manager, Chong Kee Hiong, said continual improvement in operating performance highlights the strong fundamentals of the Reit's assets. 'In light of the global macroeconomic uncertainties, we remain focused on strengthening the operating performance of our properties,' he added. The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
01-06-2025
- Business
- Business Times
S-Reits with Singapore office assets post resilient Q1 2025 amid positive rent reversions and high occupancy
[SINGAPORE] Singapore-listed office real estate investment trusts (S-Reits) reported a broadly resilient performance in the first quarter of 2025, underpinned by positive rental reversions, stable occupancy, and continued demand for prime office space despite macroeconomic uncertainties. The six S-Reits with Singapore office exposure – CapitaLand Integrated Commercial Trust (CICT), Mapletree Pan Asia Commercial Trust (Mpact), Suntec Reit , Keppel Reit , OUE Reit , and Lendlease Global Commercial Reit (LReit) — recorded positive rental reversions for their local office assets, with some achieving double-digit growth. Keppel Reit, a pure-play office S-Reit with mostly Singapore assets, reported positive rental reversion of 10.6 per cent across its portfolio, supported by new leasing demand and expansions from financial and technology tenants. Attributable net property income from its Singapore portfolio rose 3.3 per cent on year to S$66.4 million in Q1 2025. LReit also reported a 13 per cent rental uplift for its Jem office lease, while Suntec Reit reported a positive rental reversion of 8 per cent for its Singapore office portfolio in Q1 2025, its 27th quarter of positive rent reversion. CICT and OUE Reit posted rental reversions of 5.4 per cent and 9.9 per cent, respectively, for their office portfolios, while Mpact achieved 2.2 per cent at Mapletree Business City (MBC) and 7.4 per cent at its other Singapore office assets. Occupancy across S-Reits Singapore office portfolios remained healthy. 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 Suntec Reit's office portfolio maintained high committed occupancy of 98.7 per cent, while Keppel Reit, OUE Reit and CICT similarly reported committed occupancies ranging between 96.3 and 97.9 per cent for their Singapore office assets. Mpact's Singapore assets had occupancy ranging from 91.2 per cent at MBC to 99.5 per cent elsewhere, while LReit's Jem office building was fully occupied. Leasing activity was driven by tenants in the financial services, technology and professional services sectors. Looking ahead, Reit managers observed that tenants are likely to be more cautious in terms of demand for office space given potential headwinds from geopolitical tensions, slower global growth, and cautious business sentiment. However, limited supply of new office space expected in Singapore's core CBD area from 2025 to 2027 is expected to support rental stability. Managers also noted that the flight-to-quality trend remains prominent in Singapore's office sector, with newer office developments in prime locations better positioned to weather the uncertainty. The six S-Reits trade at an average price-to-book ratio of around 0.64, slightly below the sector average of 0.73, according to Bloomberg data. Reit managers expect performance of their Singapore office assets to remain stable. Suntec Reit noted that rent reversion for its Singapore office assets is expected to be modest, in the range of positive 1 to 5 per cent. Property consultancy JLL said in its Q1 office market report that Singapore's office rents registered a fourth consecutive quarter of marginal growth of less than 1 per cent quarter on quarter. It noted that office demand should stay positive, driven by supportive government policies and businesses seeking to capitalise on South-east Asia's growing need for wealth management, fintech and artificial intelligence solutions. JLL added that the positive demand coupled with limited new supply are expected to keep office rents and capital values on a stable to modest growth path over the next 12 months, barring any unforeseen economic shocks. The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
30-04-2025
- Business
- Business Times
S-Reits need to reveal clear strategies amid tariff uncertainty
[SINGAPORE] It is midway into the earnings season for Singapore-listed real estate investment trusts (S-Reits), with most of them having posted their Q1 results. Closely watched among investors and analysts is the impact that US tariffs will have on these S-Reits. They are also looking out for the Reit managers' plans to counteract the effect of the tariffs imposed by US President Donald Trump. The 'Liberation Day' tariffs announced on Apr 2 sparked a sell-off of S-Reits that week, although the sector has since rebounded. As at Wednesday's (Apr 30) close, the iEdge S-Reit index had climbed 8.7 per cent since Apr 9, when the tariffs took effect. As the earnings season progresses, most S-Reits with exposure to affected markets have acknowledged the potential drag from the tariffs on their financial results. However, more clarity is needed. Reit managers should go beyond general acknowledgments and provide concrete details about the specific sectors and assets exposed, and how they intend to respond to the potential fallout. Given the broad scope and global reach of the proposed tariffs, their long-term economic impact could be significant, especially if Trump proceeds with implementation. 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 For S-Reits, which are only now seeing a performance rebound amid easing interest rates, failing to address these risks in a meaningful way could undermine recent gains. Scant detail from S-Reits A total of 14 S-Reits had posted their Q1 results as of Apr 30. Many gave a brief overview on how they would be affected by the tariffs. In general, they seemed to feel that an economic slowdown would lead to tenants pulling back or hesitating on lease commitments. For instance, the manager of Mapletree Pan Asia Commercial Trust noted in its recent Q4 results that tenants had become more cost-conscious, and decision-making among them had 'slowed down quite a lot'. Others, such as CapitaLand Ascott Trust , offered more detail. Its Q1 business update disclosed that while the Reit might take a hit to the demand for lodging, its diverse mix of guests and longer-stay accommodation type would go some way to blunt the impact. Several Reit managers also said they would adopt a wait-and-see approach, given that the tariffs were announced a month ago, and there have been constant changes to their scope. The chief executive officer of Suntec Reit's manager, for example, said at a briefing on Suntec Reit's Q1 results that the Reit manager was watching for trends in retail tenant sales, with the tariffs having been implemented only in April. However, overall, S-Reit managers have so far offered few details on how the tariffs would hit their portfolios, and how they intend to address the fallout. These include specific details on the extent to which a Reits' assets may be affected, or how exactly the manager will mitigate the impact of the tariffs. For instance, Keppel Reit's business update for Q1 focused on its performance, but offered little by way of how the economic situation could affect its outlook. Far East Hospitality Trust's business update presentation for Q1 acknowledged that trade tensions could cloud economic outlook, but added that the outlook for tourism remained positive, with more visitors returning to Singapore post-pandemic, wooed by new attractions. Details – such as the extent to which a recovery in visitor arrivals would offset the negative economic outlook, or how the trust intends to respond to tourists spending less – would give investors a better understanding of the trust's strategy during this period. Granted, most S-Reits provide only business updates for their Q1 financial results. These are typically released as announcements on the Singapore Exchange, and do not give Reit managers much scope to share their outlook. Furthermore, not all Reits hold briefings for analysts or the media. Such platforms would otherwise provide an avenue for market watchers to probe Reit managers further on their strategies. Nevertheless, given how quickly the market moves in response to Trump's policy pronouncements – which the US president has changed several times now – it is imperative that S-Reits keep investors informed of their game plan should the worst happen. What Reit managers can do S-Reit managers can afford to provide more detail on their response to Trump's tariffs. Beyond acknowledging the tariffs' impact, they can explain the extent to which the tariffs will affect their bottom lines. They can also give more details on the specific assets or geographies which will be hit by the tariffs, and lay out scenarios based on the severity of the tariffs. Rather than say that they will adopt a 'wait-and-see approach', managers should go a step further to share active plans they may have to mitigate the impact of tariffs. This could be anything ranging from incentives to encourage tenants to commit to leases quickly, or more extreme measures like divesting of assets or rejigging their portfolio mix by subsectors or geographies. While their Q1 business updates may not be the best platform to share these plans, Reit managers can look for alternative platforms, such as upcoming annual general meetings or Singapore Exchange announcements, to do so. Such moves would quell investor concerns during a turbulent economic period and instill confidence in the Reit management. There is still some way to go until the end of the current earnings season. With S-Reit performances expected to see an uptick overall due to lower interest rates, it would do them good to keep the positive momentum going.
