SG Morning Highlights | Keppel Reit Posts 7.2% Increase in Net Property Income for Q1 2024
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Tuesday; STI up 1.00%
●Singapore's Industrial Property Sector Sees Slowdown in Q1 Dealmaking and Leasing Activity
●8 Singapore Suburban Areas Offer Strong Potential for Retail Investment
●Stocks to watch: Keppel Reit, ESR-Logos Reit, Nanofilm, LHN
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Tuesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 1.00 percent to 3,257.50 as at 9.05 am.
Advancers / Decliners is 127 to 30, with 93.80 million securities worth S$125.12 million changing hands.
Breaking News
Singapore's Industrial Property Sector Sees Slowdown in Q1 Dealmaking and Leasing Activity
Deal-making and leasing activity in Singapore's industrial property sector slowed down in the first quarter, according to Knight Frank. The volume of caveats lodged for industrial properties decreased by 21% QoQ to 335 caveats. Leasing also slipped 6.5% QoQ to 2,948 transactions, with the value of rental transactions settling at $28.5m. However, Knight Frank noted that leasing inquiries it received from investors and owner-occupiers remained healthy. The property agency predicts that improving manufacturing conditions and potential interest rate cuts could lift the market for the rest of the year, with rents and prices expected to rise by 3% to 5%.
8 Singapore Suburban Areas Offer Strong Potential for Retail Investment
JLL has identified eight suburban areas in Singapore that offer strong potential for retailers to enhance their trading performance due to the relatively low provision of retail space compared to resident populations. The planning areas of Sengkang, Choa Chu Kang, Punggol, Bukit Batok, Woodlands, Bedok, Yishun, and Jurong West are expected to attract investment activity, with under-provision of retail space and population growth offering particularly strong potential to enhance trading performance. JLL believes Woodlands and Yishun planning areas stand out due to their large population bases and healthy population growth. Meanwhile, Bukit Panjang, Paris Ris, Sembawang, and Tengah offer strong upside in their trading performance due to their low retail space provisions relative to the resident population.
Stocks to Watch
$Keppel (BN4.SG)$: Keppel Reit posted net property income (NPI) of S$48.2 million for the first quarter ended March 31, 2024, up 7.2% from S$45 million in Q1 FY2023 due to higher rentals and contributions from 2 Blue Street. Property income rose 6.3% to S$61.3 million, from S$57.7 million the year before. NPI attributable to unitholders increased 7.1% to S$43.4 million, from S$40.5 million. The Reit's higher NPI for the quarter was partly attributed to strong demand for prime office space. The Reit's portfolio occupancy was 96.4%, and its portfolio weighted average lease expiry stood at 4.6 years as at March 31, based on committed attributable gross rent.
$ESR-LOGOS REIT (J91U.SG)$: ESR-LOGOS Reit's net property income (NPI) fell 10.8% YoY to S$62.9 million, while gross revenue dropped 8.9% to S$89.9 million for the first quarter of the fiscal year, in the absence of contributions from 10 non-core assets divested in FY2023. If not for the divestments, NPI would have only slightly decreased by 0.2% to S$63.1 million, while gross revenue would have increased 1.3% to S$88.4 million on a same-store basis. The results represent the first quarter of financial results after the real estate investment trust conducted its capital recycling strategy in 2023. The occupancy rate for the quarter was 91.7%, down from the 92.1% recorded in Q1 2023, while its gearing stood at 36.3% on a pro forma basis.
$Nanofilm (MZH.SG)$: Nanofilm Technologies posted a 19% YoY increase in revenue to S$39 million for its first quarter ended March 31, 2024, driven by the recovery of its consumer business segment, according to a business update. The group's advanced materials business unit grew 41% YoY in Q1, driven by a 51% growth in its computer, communication, and consumer (3C) sector, as well as 24% growth in automotive segments. Other industrial segments posted 21% growth for the quarter, including contributions from the recently acquired AxynTeC Dünnschichttechnik. Smartphones were the biggest contributor of revenue to the group's 3C sector, accounting for 44% of revenue.
$LHN (41O.SG)$: LHN announced on Monday that its indirect wholly-owned subsidiary, Coliwoo Holdings, has sold its 20% interest in Coliwoo (TK), a LHN subsidiary, to independent real estate development company Macritchie Developments for S$20,000. This represents 20% of Coliwoo (TK)'s total issued share capital. Upon completion of the disposal, Coliwoo (TK) will be 80% owned by Coliwoo Holdings and 20% owned by Macritchie Developments, which is a joint venture partner of LHN Group via Jadeite Properties. Coliwoo (TK) will remain a subsidiary of LHN and is expected to acquire a property through public tender on May 9, 2024.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io
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