SG Morning Highlights | Great Eastern Reports 45% Increase in Q2 Profits, Declares S$0.45 Interim Dividend

Singapore shares opened higher on Wednesday. The $FTSE Singapore Straits Time Index(.STI.SG)$ rose 0.23 percent to 3449.79 as at 9:14 am.

$Great Eastern(G07.SG)$: Great Eastern, the insurance arm of OCBC, has announced a marked increase in its second-quarter earnings for FY2024, posting a net profit jump of 45% to S$280.4 million. The first half of the year saw a 34% rise in net profit to S$587.1 million, attributed to stronger insurance business performance and positive investment outcomes. Reflecting this growth, the insurer has declared an interim dividend of S$0.45 per share, up 12.5% from the previous payout, to be distributed on August 29. The insurer experienced a 34% rise in total weighted new sales and a 16% increase in new business embedded value for the half-year period, driven by robust sales momentum in Singapore and Malaysia. Great Eastern's focus continues to be on long-term sustainable growth, as stated by CEO Khor Hock Seng. Trading of Great Eastern shares remains suspended following OCBC's acquisition of shares which reduced the public float below the requisite threshold.

$Seatrium Ltd(5E2.SG)$: Seatrium, an entity operating in Singapore's offshore and marine industry, has successfully obtained a substantial financial boost with a $1.1 billion Committed Global Syndicated Bank Guarantee (BG) Facility. This three-year facility, secured through Seatrium Financial Services (SFS), is aimed at supporting the company's project needs and fostering future business expansion. The syndication involved eight financial institutions, marking a pioneering move in the sector. DBS Bank and Standard Chartered Bank led the coordination of this landmark BG facility.

$Grab Holdings(GRAB.US)$ & $Singtel(Z74.SG)$: GXS Bank Pte, the digital banking venture formed by Grab Holdings Ltd. and Singapore Telecommunications Ltd., has set a goal to achieve profitability by March 2027. The bank plans to aggressively grow its loan book, aiming to double it every six months. Focusing on underserved segments such as gig economy workers and small businesses, GXS leverages data analytics to assess creditworthiness through transactions on the Grab app. Despite stiff competition from Singapore's banking giants, GXS Bank is optimistic about its future, with plans to reach S$3 billion in deposits and a S$2 billion loan book within three years. GXS, which reported widened losses in 2023, is backed by significant capital commitments from Grab and Singtel and has no immediate plans for a public listing.

$KepPacOakReitUSD(CMOU.SG)$: Keppel Pacific Oak US Reit (Kore) reported a decline in distributable income for the second quarter, recording US$11.9 million, which is an 8.8% decrease from the previous year's US$13.1 million. As part of a strategic move to address capital requirements and leverage concerns, distributions have been suspended from the second half of FY2023 to the second half of FY2025. This could change if market conditions improve. Gross revenue and net property income also saw a decrease in the quarter. Despite these challenges, Kore leased a significant amount of office space and has taken steps to refinance and extend loan facilities. The Reit remains committed to balancing investments in its properties with the goal of resuming income distribution to unitholders as soon as feasible. Kore shares closed at US$0.20, reflecting a 3.6% increase.

$AIMS APAC Reit(O5RU.SG)$: Aims Apac Reit has reported a 1.7% decrease in its distribution per unit (DPU) for the first quarter of FY2025, with the figure standing at S$0.0227, down from S$0.0231 in the same period the previous year. The dip is attributed to an increase in the number of units due to an equity fundraising round completed in the second quarter of FY2024. On the positive side, the Reit's gross revenue rose by 9.7% to S$47.3 million, while the net property income (NPI) saw a 6.6% increase to S$34.4 million, bolstered by significant rental reversions and strong tenant retention. Distributions to unitholders are slated to rise by 7.3% to S$18.4 million and will be paid on September 25. As of June 30, the Reit maintained a high portfolio occupancy of 97.3%, a healthy aggregate leverage of 33.1%, and a weighted average debt maturity of 2.1 years. Shares of Aims Apac Reit remained stable, closing at S$1.30 on the day prior to the announcement.

$CDL HTrust(J85.SG)$: CDL Hospitality Trusts (CDLHT) has reported a stable half-year distribution per stapled security (DPS) of S$0.0251, despite a notable 5.9% increase in net property income (NPI) to S$66.5 million for the first half of FY2024. The unchanged DPS is attributed to higher interest costs. Total distributions after retention saw a slight increase of 0.7% to S$31.4 million, with payment scheduled for August 30. Revenue grew by 6.8% to S$127.3 million, with NPI improvements across most portfolio markets, except for a decrease in New Zealand. The UK market's NPI remained stable. Increased revenue per available room (RevPAR) was observed across all portfolio markets, with Singapore hotels showing a 7.7% RevPAR increase. CDLHT's Singapore portfolio NPI rose by 6.8% to S$41.3 million, driven by higher occupancy rates.