SG Morning Highlights | Hongkong Land Announces Strategic Shift from Residential Development to Fund Management

Singapore shares opened lower on Wednesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.08 percent to 3587.39 as at 9:02 am.

On Tuesday, $HongkongLand USD (H78.SG)$ announced its decision to exit the build-to-sell residential development sector and transition towards fund management. This change is part of a strategic overhaul following the company's shift to a US$7 million underlying loss for the half-year ending June 30, a stark contrast to the US$422 million net profit reported during the same period the previous year. The property giant plans to reinvest up to US$10 billion by 2035 and aims to increase its assets under management to as much as US$100 billion. Additionally, Hongkong Land anticipates doubling both its profit before interest and tax, and its dividends per share by 2035. The firm’s shares closed at US$3.89, marking a decrease of 1.5 percent.

For the quarter ending September 30, $Mapletree Ind Tr (ME8U.SG)$ reported a slight increase in its distribution per unit (DPU) to S$0.0337, up 1.5 percent from S$0.0332 the previous year. This rise was supported by improved occupancy and rental rates, according to a statement by its manager in a recent stock exchange filing. The trust’s quarterly revenue rose 4.2 percent year-over-year to S$181.4 million, up from S$174.1 million, while net property income saw a 4.6 percent increase to S$134.5 million from S$128.6 million. Shares of MIT were trading at S$2.39, down by 1.6 percent, just prior to the announcement.

The manager of $ESR-LOGOS REIT (J91U.SG)$ reported a decline in its net property income by 6.5% year-on-year to S$192.7 million in the third quarter. Gross revenue also decreased by 6.3% to S$272.5 million, as noted in the interim business update on Wednesday. This downturn was primarily due to the divestment of 11 non-core assets during FY2023 and 2Q2024, with the proceeds yet to be reinvested. The Reit's share price remained unchanged at S$0.28 on Tuesday.

$Far East HTrust (Q5T.SG)$'s net property income decreased by 6.8% to S$26.2 million for the quarter ending September 30, down from S$28.1 million in the prior year. The management attributed Wednesday's decline to increased property taxes and reduced revenue, particularly from the lack of a one-time hotel contribution for isolation purposes seen in 2023. FEHT's stapled securities closed unchanged at S$0.625 on Tuesday.

$CapLand China T (AU8U.SG)$, which focuses on Chinese retail real estate, for the first nine months,saw a 5.1% drop in net property income year-over-year. According to its manager on Wednesday, the decrease stemmed from reduced contributions from its logistics and business park sectors, exited malls, and lower effective occupancies and rentals. However, CLCT’s unit price experienced a slight uplift, closing at S$0.76 on Tuesday, up by S$0.005 or 0.7%.