The following companies saw new developments that may affect trading of their securities on Monday (Dec 18):
Clas (HMN): CapitaLand Ascott Trust (Clas) is divesting three hotels in Osaka, Japan to an unrelated third party for a total of 10.7 billion yen (S$100.2 million), as part of its ongoing portfolio reconstitution strategy.
The properties are Hotel WBF Honmachi, Hotel WBF Kitasemba East and Hotel WBF Kitasemba West, it disclosed in a bourse filing on Sunday (Dec 17) morning.
The divestments will be at about 15 per cent above book value, and are expected to be completed in Q1 2024, CapitaLand Ascott Trust said. They are expected to raise net proceeds of about 3.9 billion yen, and the trust will recognise a net gain of 1.1 billion yen.
SIA (C6L): Singapore Airlines (SIA) on Friday (Dec 15) posted a 17.6 per cent year-on-year increase in passenger traffic in November, amid strong passenger demand heading into the year-end peak travel season.
The national carrier’s revenue passenger kilometres, which measure the number of passengers carried multiplied by the distance flown, rose 15.4 per cent to 9.2 billion during the month, from eight billion the year before.
The growth in passenger traffic outpaced the 15.1 per cent expansion in its capacity. As a result, the group’s passenger load factor (PLF) nudged up 0.9 percentage point to 89.8 per cent. (Passenger load factor is expressed as a percentage of available seat-km.)
Manulife US Reit (BTOU): Manulife US Real Estate Investment Trust (MUST) has entered into the master restructuring plan to remedy its financial woes.
The announcement on Monday (Dec 18) came after all 12 lenders obtained the necessary approvals on the plan to raise funds through a mix of asset dispositions and a sponsor-lender loan.
Under the master restructuring agreement, MUST would face default if the Reit manager is no longer wholly-owned by the sponsor the Manufacturers Life Insurance, or any successor of the sponsor which is wholly-owned by the sponsor’s holding company, Manulife Financial Corporation.
Lendlease Global Reit (JYEU): Lendlease Global Reit’s (Lendlease Global Reit) commercial Italy fund has restructured a lease at Milan portfolio property Sky Complex, originally due to expire in 2032, with an option for termination by the tenant in 2026.
The move will not only reduce tenant concentration risk, but also result in higher rent for two of the property’s buildings, on top of a recent 5.9 per cent rental increase in May 2023, the manager said on Monday (Dec 18).
Sky Complex comprises two buildings located at Via Luigi Russolo 4, and a third building located at Via Luigi Russolo 9 in Milan, Italy.
Cromwell E-Reit (CWBU): Cromwell European Real Estate Investment Trust (Cromwell E-Reit) has repurchased 50 million euros (S$72.6 million), or 10 per cent, of its 500 million euro 2.125 per cent bonds due Nov 19, 2025.
Following the repurchase, the aggregate principal amount of the bonds outstanding will be 450 million euros.
On Monday (Dec 18), Cromwell E-Reit’s manager said it expects to book three million euros in profit from the discounted purchase price of the bonds.
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