SG Morning Highlights: S-Reits hedge against rising interest rates

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Singapore shares opened lower on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.20 per cent to 3,243.11 as at 9.12 am.

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S-Reits hedge against rising interest rates

THE iEdge S-Reit Index declined 3 per cent in total returns in 2022 year to date (YTD), amid geopolitical escalations, macro uncertainty and increasing expectations of a potential rate hike.

S-Reits currently have an average gearing ratio of 37.4 per cent, based on latest company filings, well below the regulatory threshold of 50 per cent.

This translates into approximately S$24.6 billion (based on Bloomberg data for total assets multiplied by company-reported gearing ratio) of potential debt headroom for the sector, to fund capital-intensive acquisitions.

Stocks to Watch
$SATS (S58.SG)$ :The mainboard-listed inflight caterer and ground handler on Friday said it will for its existing institutional catering businesses. It has accepted an offer from JTC Corporation for a property with a 30-year lease term within the Jurong Innovation District to operate the hub. Prior to the news, Sats shares ended Friday at S$3.92, up S$0.02 or 0.5 per cent.

$Stoneweg Reit SGD (CWCU.SG)$ : Its manager said in an exchange filing on Monday that the ongoing war between Russia and Ukraine has no direct impact on the real estate investment trust's (Reit's) European portfolio, as more than 85 per cent of its properties are located in Western Europe. It also foresees limited immediate impact on business operations, as current rising energy prices and the ongoing refugee crisis is not expected to disrupt rent collection.

$Silverlake Axis(Delisted) (5CP.SG)$ :The fintech company on Monday said it is - representing around 9.1 per cent of the total number of shares in issue - at S$0.33 each in cash, as part of an off-market equal access offer.

$Kimly (1D0.SG)$ : The group and its convicted consultants have with the recent engagement of the duo, said the Catalist-listed operator of coffeeshops in a regulatory statement furnished on Saturday. This follows feedback and concerns from Kimly's stakeholders after the consultants were convicted of and fined for breaching the Securities and Futures Act in mid-February.

$Hatten Land (PH0.SG)$ : Borrowings of RM206 million (S$66.4 million) due in a year could be repaid as the company's , stated the Catalist-listed group on Friday (Mar 11) in response to queries from the $SGX (S68.SG)$. Hatten Land also assured SGX that its non-current trade receivables do not have material concentration risk from a particular debtor as many individual property buyers are involved. The counter ended flat at S$0.04 on Friday, before the news.