SG Morning Highlights | CapitaLand Investment Reports Stable Performance in Q1 with Total Revenue of SGD 650 Million

Moomoo News SG wrote a column · Apr 26, 2024 09:07

SG Morning Highlights | CapitaLand Investment Reports Stable Performance in Q1 with Total Revenue of SGD 650 Million

Good morning mooers! Here are things you need to know about today's Singapore markets:

●Singapore shares opened lower on Friday; STI down 0.27%

●Singapore Industrial Rents Rise 1.7% in Q1, Prices Dip for the First Time in Over Three Years

●Expert Forecasts Continued Rise in Prime Office Rents in Singapore

●Stocks to watch: CapitaLand Investment, Sheng Siong

●Latest share buy back transactions

-moomoo News SG

Market Snapshot

Singapore shares opened lower on Friday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.27 percent to 3,278.78 as at 9.04 am.

Advancers / Decliners is 53 to 81, with 55.23 million securities worth S$72.53 million changing hands.

Breaking News

Singapore Industrial Rents Rise 1.7% in Q1, Prices Dip for the First Time in Over Three Years

According to the latest data from JTC, rents of all types of industrial properties in Singapore increased by 1.7% quarter-on-quarter (QoQ) in the first quarter of 2024, marking the fourteenth consecutive quarter of growth. However, prices have slipped for the first time in over three years due to slow global growth and high supply. The rental growth was mainly driven by the rise in business parks and single-user factories, followed by the increase in warehouse rents. Despite the vacancy rate climbing to 11.3%, the sector continued to book rental growth. The fall in prices was caused by the slowing price growth of multi-user factories. Industrial rents and prices are projected to soften for the rest of the year due to rising supply and a broader slowdown in the global economy.

Expert Forecasts Continued Rise in Prime Office Rents in Singapore

According to Knight Frank, prime office rents in Singapore are expected to continue to rise in the next 12 months. In the first quarter of 2024, Singapore recorded a 3.4% year-on-year increase and a 0.6% quarter-on-quarter increase in prime rents. Singapore also has the highest rent in the Asia-Pacific region at US$114.18 per square foot per year. Despite having high rents, Singapore has the lowest vacancy rate in the region at 4.3%. However, Singapore ranks behind Hong Kong in terms of occupancy cost.

Stocks to Watch

$CapitaLandInvest (9CI.SG)$: CapitaLand Investment (CLI) has reported stable performance in Q1 with total revenue of SGD 650 million, down 0.2% from the same period last year. Fee-income-related business revenue grew 7% year-on-year while real estate investment business revenue fell 4%. The growth was driven largely by increased revenue contributions from the commercial, lodging, and listed funds management segments. CLI aims to achieve funds under management of SGD 200 billion by 2028 through organic expansion and strategic inorganic initiatives. The group achieved funds under management of SGD 100 billion from 1 January to 25 April 2024.

$Sheng Siong (OV8.SG)$: Supermarket chain Sheng Siong has reported a 9.3% year-on-year increase in net profit to SGD 36.3 million for the first quarter ended 31 March 2024, driven by higher same-store sales and a longer sales period before the Chinese New Year festive season. Revenue for the quarter rose 5.5% to SGD 376.2 million, while gross profit margin improved 0.6 percentage points. However, the group recorded higher operating expenses for the quarter, attributed to selling and distribution expenses and administrative expenses. The CEO of Sheng Siong said that the group will diversify its supply chain and refine its sales mix towards higher-margin products to manage risks effectively and remain proactive in seeking retail space to open more stores.

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