Latest news with #debtreduction
Yahoo
5 days ago
- Business
- Yahoo
CDL to sell $2.75 billion Singapore office site to cut debt
By: Low De Wei (Bloomberg) — City Developments Ltd. agreed to sell its majority stake in one of Singapore's most iconic office complexes, according to a person familiar with the matter, as the developer seeks to reduce debt and regain investor confidence after a family feud. CDL will sell its 50.1% stake in South Beach to minority owner IOI Properties Group Bhd, the person said, requesting not to be identified because the information is private. Malaysian developer IOI will have full ownership following the deal. The deal values the complex at about S$2.75 billion ($2.1 billion), the person said. An IOI spokesperson declined to comment. CDL didn't immediately respond to an emailed query. Shares of CDL rose about 1.6% before a trading halt Wednesday morning, pending an announcement. CDL has been under pressure to sell assets after a feud divided the Kwek family, the wealthiest clan in Singapore. Despite mending relations with his father and Chairman Kwek Leng Beng, the firm's Chief Executive Officer Sherman Kwek acknowledged in April that the dispute had hurt shareholders' confidence, and said that reducing the growing debt load is a priority. The deal will help CDL to meet a pledge to exceed the roughly S$600 million in divestments it made in 2024, which fell short of a S$1 billion target. The complex in Singapore's central business district includes retail space, a 34-story office tower, and a 45-story building housing a JW Marriott Hotel. The purchase adds to IOI's growing presence in Singapore, with residential developments as well as assets like IOI Central Boulevard Towers, a newly opened city centre office project. The Malaysia-listed firm is controlled by the Lee family, which made its fortunes from palm oil. The South Beach development, designed by Norman Foster's architectural firm, has seen ownership changes before. CDL bought the site for nearly S$1.69 billion in 2007 along with two foreign partners, a unit of state-owned Dubai World Corp., and El-Ad Group Ltd. The global financial crisis led to a yearslong delay in construction and the two partners exited the project, with IOI eventually taking a minority stake in 2011. The elder Kwek resisted allowing IOI to take an equal stake in order to maintain control, according to a biography published in 2023. Major tenant Meta Platforms Inc. gave up its seven floors of space at the office tower last year, and occupancy dropped to 92.4% as of the end of March, compared with 94.4% at the end of last year. More stories like this are available on ©2025 Bloomberg L.P.
Yahoo
01-06-2025
- Business
- Yahoo
Himatsingka Seide Ltd (BOM:514043) Q4 2025 Earnings Call Highlights: Navigating Challenges and ...
Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Himatsingka Seide Ltd (BOM:514043) has achieved a high capacity utilization rate of 99% in its spinning division. The company is optimistic about growth prospects in the Indian market, with plans to expand its brand presence across various price points. The recently signed FTA between India and the UK presents potential growth opportunities for the company. Himatsingka Seide Ltd (BOM:514043) is on track to achieve its sustainability goals, aiming for 100% renewable energy by 2030. The company has successfully reduced its consolidated net debt from 2,634 crores to 2,425 crores, indicating progress in deleveraging efforts. The company's total income decreased by approximately 3% due to recalibration initiatives in its brand portfolios. Himatsingka Seide Ltd (BOM:514043) is facing short-term revenue and margin impacts due to recent tariffs imposed by the United States. The recalibration of brand portfolios is still ongoing, with an estimated 150 crores of annual impact yet to be addressed. Working capital days remain high, exceeding 200 days, which affects the company's financial flexibility. Interest costs have risen despite a reduction in long-term borrowings, due to other charges affecting the financial line. Warning! GuruFocus has detected 7 Warning Signs with BOM:514043. Q: With regards to the recalibration of revenue, is that now complete, and how do you see revenue numbers in terms of growth? A: We are nearly at the end of this calibration exercise, with approximately another 150 crores of annual impact to make up for. Growth in Q1 might be muted due to tariffs, but we expect organic growth to resume thereafter. Executive Vice Chairman and Managing Director Q: How should we look at the overall working capital rationalization and debt reduction for the year? A: We have corrected gross debt by just under 300 crores. We expect to reduce leverage by 100 to 200 crores through initiatives like non-core asset sales and organic business operations. Executive Vice Chairman and Managing Director Q: Can you provide an update on the territorial segment and its capacity expansion plans? A: The territorial segment remains strong, and we plan to expand capacity from 25,000 to 40,000 tons over the next 18 to 24 months, focusing first on utilizing current capacities. Executive Vice Chairman and Managing Director Q: How is the macro environment affecting your business, particularly with tariffs and FTAs? A: The macro environment includes tariffs, FTAs, and geopolitical factors. Tariffs are currently at 10%, impacting Q1 slightly. The FTA with the UK is expected to benefit us once it comes into effect, enhancing market share. Executive Vice Chairman and Managing Director Q: What is the status of your India operations and brand reach? A: We operate with three brands in India, present in approximately 4,000 points of sale. We aim to expand this footprint and expect to reach between 100 and 200 crores in revenue from India in FY26. Executive Vice Chairman and Managing Director For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBS News
28-05-2025
- Business
- CBS News
Don't borrow home equity this June before considering these things, experts say
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Borrowing money from your home should always be done strategically, but especially this June. Getty Images In today's high interest rate environment, affordable borrowing options are few and far between. Perhaps it's no surprise, then, that many homeowners are exploring ways to cash in on their home equity to consolidate debt, cover major expenses or for just about anything else. But tapping your home's equity without a clear strategy can backfire. After all, home equity loans and home equity lines of credit (HELOCs) carry substantial risks since they're secured by your home. That's why it's important to look at the big picture, including the five considerations below, before moving forward with a home equity loan or HELOC this June. Start by seeing what home equity loan interest rate you could qualify for here. What to consider before borrowing home equity this June Here are five things homeowners should consider before borrowing from their home equity this June, according to some experts: Make sure you can comfortably afford it If borrowing would stretch your budget too thin, you might think twice before moving forward. Home equity lending products are tied to your home. If you fall behind on payments, your lender could foreclose. Whether you're using the funds for a renovation, debt consolidation or something else, it's not worth risking the roof over your head. "The big question is: can you really afford to borrow against your home?" asks Dustin Suttle, CFP and co-founder of Suttle Crossland Wealth Advisors. "Using home equity means putting your house on the line. If something goes sideways, like a job loss or unexpected expense, you're risking more than just money." Suttle suggests confirming you're borrowing for the right reasons and that you've thought through the long-term impact before moving forward. See how affordable a home equity loan could be for you now. Have a purpose for the funds Home equity loans and lines of credit are popular borrowing options because they have more affordable interest rates than many alternatives and can be used more flexibly, generally. But before tapping your home equity, understand why you're doing it and make sure the funds improve your financial health, not make it worse. "The most important consideration for homeowners to consider before tapping into their equity is the purpose of it," says Jeremy Schachter, branch manager at Fairway Independent Mortgage Corporation. "Will the equity being tapped improve the home's value? Will you get out of debt? Are you planning to sell this home in the next two to five years or keep it longer?" Suttle adds, "Home equity works best when you're using it to improve your financial position. Think home upgrades that boost value, funding education or paying off high-interest debt. Using it for things like vacations or luxury items doesn't build equity, it erodes it." Choose the right home equity option Home equity loans and HELOCs are two of the more common ways to borrow home equity. They sound similar, but they work very differently, even though rates on both are relatively low right now. Which one should you use? "It depends on your personal situation," says Cami Anderson, mortgage lending manager at Wasatch Peaks Credit Union in Ogden, Utah. "A HELOC has a variable rate and is great for projects like home improvements since you can draw from it as needed. A home equity loan, on the other hand, gives you all the money upfront and comes with a fixed monthly payment." Before choosing a HELOC, Schachter suggests digging into the details. "Many of these loans have teaser rates that only last a short time. What will your payment be when that ends? What's the maximum rate it could jump to?" Focus on limiting your risk One of the biggest dilemmas home equity borrowers face is getting the money they need without overleveraging their home to the point of risking it. That starts with borrowing less than what the bank says you can. "Just because you qualify for a large amount doesn't mean you should take it," says Suttle. "Be realistic about your cash flow, keep a strong emergency fund and have a backup plan." Most lenders cap home equity borrowing at 80% to 85% of your home's value. "This gives at least some wiggle room if the market changes with home values," Schachter notes. Still, you may want an even larger buffer by borrowing no more than, say, 70% loan-to-value, especially if you're not using the funds to improve your home. Make sure your job and income are stable Before taking on a home equity loan or HELOC, your income needs to be consistent, not just today but for the full repayment term. If your income is seasonal, unpredictable or your job may not be secure long term, even one rough patch could put your home at risk. "Taking on new debt when income is uncertain can quickly become a problem if things don't go as planned," says Suttle. "If you're self-employed or rely on commissions, the risk is higher." Lenders will look at your debt-to-income (DTI) ratio, but they won't know the full picture. Ultimately, only you know whether your income can support a new loan payment for the long term. The bottom line Before tapping into your home equity this June, make sure you can comfortably afford the monthly payments now and in the future. Ideally, you'll use the funds to improve your financial position while limiting your financial risk. Home equity loans and HELOCs are significantly more affordable than than credit cards and personal loans right now, but they're not without risk. Shop and compare rates, read the fine print and carefully compare both options before applying.
Yahoo
26-05-2025
- Business
- Yahoo
Nampak Ltd (JSE:NPK) (H1 2025) Earnings Call Highlights: Strong Financial Performance and ...
Revenue: Increased by 11% to ZAR5.7 billion. EBITDA Margin: Improved from 4.6% in H1 '23 to 19.3% in H1 '25. Trading Profit: Rose by 22% to ZAR764 million. Operating Profit: Increased by 7% to ZAR952 million. Net Finance Costs: Reduced by 38% to ZAR282 million. Profit Before Tax: Up 58% to ZAR670 million. Headline Earnings: Increased by 5% to ZAR471 million. Net Debt: Reduced by ZAR1.5 billion to ZAR3.1 billion. Net Debt-to-EBITDA Ratio: Improved to 2.8 times. Return on Shareholders' Equity: Increased from 48% to 60%. Return on Invested Capital: Achieved 21%, exceeding the weighted average cost of capital. Cash Generation: ZAR1.2 billion generated before working capital. Capital Expenditure: ZAR148 million spent in the last 6 months. Gearing Ratio: Reduced from 258% to 149%. Warning! GuruFocus has detected 9 Warning Signs with JSE:NPK. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nampak Ltd (JSE:NPK) reported a significant improvement in its financial performance, with a trading profit increase from ZAR157 million in the first half of 2023 to ZAR764 million in the first half of 2025. The company achieved a 22% growth in trading profit, demonstrating strong operating leverage and margin expansion. Nampak Ltd (JSE:NPK) successfully reduced its net debt by ZAR1.5 billion, resulting in a lower net debt-to-EBITDA ratio of 2.8 times. The Diversified portfolio performed exceptionally well, with a 49% increase in trading profit and expanded trading margins from 9.9% to 12.9%. The Angolan operations delivered strong results with a 33% rise in trading profit, benefiting from a switch by a key customer from PET and Tetra Pak to cans. The ramp-up of installed large format can capacity in South Africa was delayed, impacting potential performance in the Beverage segment. There was a slight regression in EBITDA and operating profit margins due to nonrecurring positive impacts from the previous year. The company faces challenges in the volatile economic and commercial landscape of South Africa, requiring increased vigilance and agility. Nampak Ltd (JSE:NPK) has a significant dependency on a few key customers in Angola, which poses a risk if market conditions change. The Zimbabwean operations remain a concern due to the volatile environment and the outstanding $52 million owed to Nampak Ltd (JSE:NPK) by the Zimbabwean government. Q: Can you provide an update on the situation in Zimbabwe, given it's held for sale? A: Phildon Roux, CEO, explained that the volatility in Zimbabwe is high, but they have had encouraging discussions with local authorities. The main concern is whether the buyers will have the funds ready, but they have a bank guarantee for $12.5 million and are optimistic about closing the transaction. Q: What is the impact of the shift to 500 ml cans on your business? A: Phildon Roux, CEO, noted that the shift to 500 ml cans is driven by consumer preference for value and is resulting in strong double-digit growth. This trend is seen across beer, energy drinks, and now Coca Cola, indicating a significant market shift. Q: How are the trading margins in Angola compared to South Africa, and are they sustainable? A: Phildon Roux, CEO, stated that Angola's margins are higher due to currency stability, single supplier status, and high entry barriers. The business is well-managed and efficient, and they expect these margins to be sustainable. Q: What are the expectations for dividends or buybacks given the current debt levels? A: Glenn Fullerton, CFO, mentioned that once the Zimbabwe transaction is closed and consistent results are achieved, the Board may consider resuming dividends. The company has the cash-generative ability to support this in the medium term. Q: Can you comment on the capacity utilization in Angola and plans to bring a line to South Africa? A: Phildon Roux, CEO, indicated that Angola is running at 40% capacity utilization, with no need for additional CapEx. They plan to relocate a dormant line to South Africa to meet demand without significant new investment. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
Wells Fargo Upgrades Sonoco Products (SON) Stock, Lifts PT
On May 23, Wells Fargo analyst Gabe Hajde double upgraded Sonoco Products Company (NYSE:SON)'s stock to 'Overweight' from 'Underweight,' and raised the price objective to $55 from $45. As per the firm's analyst, the efforts to simplify the company with an emphasis on fewer but larger businesses continue to reach the advanced stages. Aerial view of a factory producing consumer packaging and fiber-based protective packaging. Furthermore, Wells Fargo believes that Sonoco Products Company (NYSE:SON)'s shares remain attractive because of the stock's valuation hovering below the historical averages, and there is a relatively clear path to higher profits. As per Wells Fargo, Sonoco Products Company (NYSE:SON) remains focused on 3 key areas, all with leadership positions. These areas include metal packaging, rigid paper packaging, and industrial paper packaging. The company continues to strengthen its balance sheet. With the sale of its Thermoformed and Flexibles Packaging business, Sonoco Products Company (NYSE:SON) has used after-tax proceeds of ~$1.56 billion to reduce debt. As a result, its net leverage ratio now sits at below 4.0x Net Debt/Adjusted EBITDA, and it is on track to achieve its targeted net leverage of 3.0x - 3.3x by 2026 end. Sonoco Products Company (NYSE:SON) is engaged in designing, developing, manufacturing, and selling several engineered and sustainable packaging products. While we acknowledge the potential of SON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SON and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
