To The Moon

Market Snapshot

Singapore stocks opened lower on Friday. STI fell 0.5%, SingPost rose 0.9%, UOB fell 1.1%, OCBC fell 0.9%.

Stocks to Watch

CDL Hospitality Trusts (CDLHT): The stapled group is venturing into the student accommodation business for the first time with the purchase of Benson Yard, a purpose-built student accommodation (PBSA) in Liverpool. The PBSA and the adjacent vacant land were both acquired for £37.3 million (S$63.9 million), announced its managers on Thursday. Stapled securities of CDLHT closed flat at S$0.85, before the announcement.

Cromwell European Real Estate Investment Trust (Cromwell E-Reit): The Reit is divesting two office assets in Italy for 20.9 million euros (S$29.6 million), which its manager on Friday noted to be a blended 7.7 premium over latest valuations. This is expected to reduce Cromwell E-Reit’s exposure to the Italian government. Units of the Reit ended Thursday 0.02 euro or 1.3 per cent higher at 1.59 euros.

CapitaLand Investment (CLI), CapitaLand Ascott Trust (Clas): Property investment manager CLI has sold stapled securities in Clas for S$162 million to an unrelated party. With the transaction, CLI’s holdings in Clas decreased to 24.04 per cent from 28.92 per cent – resulting in the trust no longer being a subsidiary of CLI. It will now be accounted as an associate. Prior to the announcement on Thursday, shares of CLI fell 1.9 per cent or S$0.05 to close at S$2.56, while stapled securities of Clas declined 0.6 per cent or S$0.005 to end at S$0.87.

IReit Global : The Europe-focused Reit on Thursday said it signed a 20-year agreement with hospitality operator Stayery, which will be leasing about 10,600 square metres of gross floor area at its office property in Berlin. Stayery will be operating about 255 guest rooms at the property and take up about 12 per cent of its net lettable space. Units of IReit fell 1.8 per cent or S$0.005 to close at S$0.28, before the news.

Elite UK Reit : It is selling its vacant asset St Paul’s House in Chippenham for £1.6 million (S$2.7 million). On Friday, the Reit manager said net proceeds from the divestment will be used to repay debt. The transaction is not expected to have a material impact on the Reit’s net asset value and distribution per unit for the current financial year. Units of Elite UK Reit closed unchanged on Thursday at £0.295.

SG Local News

Singapore’s residential rents climb in November against seasonal volume decline: SRX, 99.co

Rental prices for both Housing and Development Board (HDB) flats and condominiums ticked up in November, even as volumes fell amid the year-end festive season.

Flash data from SRX and 99.co released on Thursday (Dec 19) showed that condo rents increased 0.2 per cent from the previous month.

This was driven by a 0.8 per cent growth in the Outside Central Region (OCR), which more than offset a 0.6 per cent decline in the Core Central Region (CCR) and a 0.1 per cent fall in the Rest of Central Region (RCR).

Latest Singapore six-month T-bill cut-off yield inches up to 3.02%

The cut-off yield on Singapore’s latest six-month Treasury bill (T-bill) rose to 3.02 per cent, according to auction results released by the Monetary Authority of Singapore on Thursday (Dec 19).

This was a slight increase from the 3 per cent offered in the previous six-month auction that closed on Dec 5.