Singapore Stocks to Watch: Seatrium, FLCT, KIT, GuocoLand, AA Reit, Sabana Reit, Keppel Pacific Oak US Reit

TigerNews SG01-31

The following companies saw new developments that may affect trading of their securities on Wednesday (Jan 31):

Seatrium expects a financial loss for FY2023 that is “significantly higher than the previous year”, based on its profit guidance on Tuesday (Jan 30).

The group noted that it is expected to make a material non-cash write-down related to the “surplus non-core assets and obsolete inventories” for the financial year, which were identified by the management’s strategic review.

“In line with the group’s business transformation, management undertook a strategic review of its business focus, operational footprint, and assets required to support its strategy of building a profitable and resilient business going forward,” said the group, noting that the assets as surplus to its operations would be written down to improve its productivity.

Frasers Logistics & Commercial Trust (FLCT) leased 128,000 sq m of space across its portfolio in the first quarter ended Dec 31, with a portfolio occupancy rate of 95.8 per cent.

The leased space includes the 62,000 sq m lease at the newly completed Ellesmere Port in North West England in the UK, FLCT said in a business update on Tuesday (Jan 30).

For Q1, FLCT recorded positive rental reversions of 11.6 per cent on an incoming versus outgoing basis, and 18.2 per cent on an average versus average basis. The “positive leasing momentum” has reduced FY2024 expiries from 8.7 per cent as at Sep 30, 2023, to 7 per cent as at Dec 31, it added.

FY2023 was a year of superlatives for Keppel Infrastructure Trust (KIT). The infrastructure trust  delivered a record performance. Distributable Income increased 42.4% y-o-y to $316.8 million for FY2023, and 2HFY2023 distributable income rose by 36% to $183.87 million.

Distributions include the $131.2 million in capital optimisation at Ixom which was distributed to unitholders in November 2023. Distributions per unit (DPU) in FY2023, including a special DPU of 2.33 cents surged 61% to 6.19 cents. Excluding the special DPU, DPU would still have been higher but by a modest 1% y-o-y to 3.86 cents.

GuocoLand has reported earnings of $66.2 million for the 1HFY2024 ended Dec 31, 2023, 12% higher y-o-y, backed by a strong performance in the group’s Singapore business.

The earnings came about as the group’s 1HFY2024 revenue surged by 61% y-o-y to $1.07 billion due to strong growth in its property development and property investment segments.

AIMS APAC REIT (AA REIT) has reported a distribution per unit (DPU) of 6.99 cents for the 9MFY2024 ended Dec 31, 2023, 4.1% lower y-o-y.

The DPU drop is attributable to the higher number of units, which was up by 12.5% y-o-y to 810.6 million compared to the 720.3 million units in the 9MFY2023. The REIT had issued some 25.4 million new units under its preferential offering in July 2023. The preferential offering was first launched in June 2023.

The trustee of Sabana Industrial Real Estate Investment Trust (Sabana Reit) said that it rejects activist investors’ suggestions that it has committed wrongdoing or caused any delay in the Reit’s internalisation.

In a statement filed to the bourse on Tuesday (Jan 30) night, the trustee – HSBC Institutional Trust Services – said it has been focused on executing the unitholders’ mandate by ensuring that its implementation is “orderly, well-considered and advised, in the best interest of all unitholders”.

Keppel Pacific Oak US Reit’s portfolio valuation as at Dec 31, 2023, fell 6.8 per cent to US$1.3 billion, from US1.4 billion previously, based on the latest independent valuation.

This comes as the real estate investment trust’s (Reit) manager announced that its financial results for the second half and full year ended Dec 31, 2023, will be released at a later date. Its results were originally set to be released on Jan 31.

The manager said in a separate bourse filing on Tuesday (Jan 30) that four of the Reit’s 13 properties – The Plaza Buildings, Westmoor Centre, Bellevue Technology Centre and Iron Point – contributed to approximately 84 per cent of the portfolio’s valuation decline.

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  • SPOT_ON
    01-31
    SPOT_ON
    KBS Real Estate Investment Trust III Inc., a publicly registered non-traded real estate investment trust, indicated in a recent filing that, due to the current commercial real estate lending environment, there is “substantial doubt” regarding the REIT’s “ability to continue as a going concern.” The KBS-sponsored non-traded REIT reported that its estimated net asset value fell from approximately $1.3 billion in September 2022 to around $833 million in December 2023. Similarly, it’s NAV per share fell from $9.00 in September 2022 to $5.60 in December 2023. Additionally, the REIT reported that it has more than $1.7 billion in debt maturities in the next 12 months and “anticipates it may relinquish ownership of one or more secured properties,” as stated in the recent filing.
  • SPOT_ON
    01-31
    SPOT_ON
    FINISHED KBS REIT !!! [Surprised]  [Surprised]  [Surprised]  [Spurting]  [Spurting]  [Facepalm]  [Facepalm]  [Facepalm]  [Facepalm]   $KepPacOakReitUSD(CMOU.SI)$  
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