ISDN Holdings reported a net profit of S$11.1 million for the first half of the year ending Jun 30, 2022, down 9.1 per cent from the S$12.2 million earnings in the year-ago period. Revenue for H1 was down 12.2 per cent to S$190.7 million, from S$217.2 million a year ago. Cost of sales was down 14.1 per cent from S$159 million to S$136.6 million. The engineering company’s management attributed the decrease in revenue to business disruptions due to stringent Covid-19 lockdowns in China, particularly in April and May this year. However, this was partially offset by “strong financial performance” in the group’s other geographical markets, including Singapore, it said in an interim report filed with the Singapore bourse on Thursday (Sep 29). The group said its order book has stabilised after April and May, but forward visibility remains limited - a reflection of the generally volatile economic conditions across Asia. Nevertheless, it said it continues to witness broad-based and long-term demand for industrial automation solutions in China and the South-east Asian countries where it operates. These include Singapore, Malaysia, Indonesia, Thailand, and Vietnam. In particular, the group added that it has continued to see long-term demand from Asian businesses seeking industrial automation to relieve labour wage pressure, advance manufacturing capabilities and reduce business risk. It also noted that its emerging hydropower generation business in Indonesia is making progress towards commercialisation, with 2 of its 3 hydropower plants on track to start commercial operations. The group’s other operating income for H1 fell 32.2 per cent to S$2 million, which it said was due mainly to the absence of net foreign exchange gain. This was partially offset by an increase in the writeback of allowances. No interim dividend was declared for the period. ISDN shares ended Thursday up 1.2 per cent or S$0.005 at S$0.43.
The trustee of ESR-Logos real estate investment trust, RBC Investor Services Trust, has entered into a sales contract to divest the trust’s property at 2 Jalan Kilang Barat for S$35.3 million, translating to a 21.7 per cent premium to valuation. As at Thursday (Sep 29) when the announcement was made, an independent valuer had valued the 9-storey purpose-built industrial building located in Singapore’s Bukit Merah district at S$29 million. The property has a gross floor area of 7,679 square metres. It is approximately 19 years old and has a remaining land lease tenure of 39.8 years. The divestment is expected to be completed in Q4 2022, and is subject to the Singapore Land Authority’s approval, the trust’s manager said in a bourse filing on Thursday. Upon its completion, E-Log’s portfolio will comprise 80 properties across Singapore and Australia. Adrian Chui, chief executive officer of the trust’s manager, said the divestment is in line with its strategy to continue unlocking value from E-Log’s non-core properties, and will give it more flexibility to realise growth aspirations. The divestment is not expected to have any material impact on E-Log’s net asset value and distribution per unit for the financial year ending Dec 31, 2022. Net proceeds from the divestment will go towards repaying outstanding borrowings, financing upcoming asset enhancements or redevelopments, and/or funding general working capital requirements. E-Log units ended Thursday flat at S$0.355.
First Real Estate Investment Trust has secured a 1.7 billion yen (S$16.9 million) non-recourse social loan from Japan’s Shinsei Bank, which has partially funded the Reit’s 2.6 billion yen acquisitions of 2 nursing homes in Japan. The remaining financing of Loyal Residence Ayase and Medical Rehabilitation Home Bon Séjour Komaki was funded by Singapore-dollar debt, the Reit’s manager said on Thursday (Sep 29). The acquisition of the trust beneficial interest of the property in Komaki was completed on Sep 27, while that of the property in Ayase was completed on Thursday. With the Shinsei social loan, social loans and bonds will make up about a quarter of First Reit’s debt. The Shinsei social loan is not expected to have any material impact on the trust’s leverage ratio for the financial period ending Dec 31, 2022. Shinsei Bank had assessed the social impact from providing funding for these acquisitions to include securing houses for the elderly, and promoting women’s active participation in society. The bank assessed that the loan can contribute to the United Nations’ Sustainable Development Goals of good health and well-being (goal 3), gender equality (goal 5), as well as decent work and economic growth (goal 8).
Comments