SG Morning Highlights | Keppel Reit Sees H1 DPU Dip by 3.4% Due to Increased Borrowing Costs

Singapore shares opened lower on Tuesday. The $FTSE Singapore Straits Time Index(.STI.SG)$ dropped 0.02 percent to 3443.56 as at 9:16 am.

$Keppel Reit(K71U.SG)$: Keppel Reit reported a 3.4% decline in its first-half distribution per unit (DPU) to S$0.028, impacted by a significant rise in borrowing costs despite an 8.9% year-on-year increase in property income to S$125.1 million. The net property income (NPI) saw a growth of 7.7% to S$96.8 million, bolstered by contributions from key properties and a new acquisition. However, higher property expenses and currency fluctuations offset these gains, resulting in a 2.1% decrease in distributable income from operations. The distribution is scheduled for September 13, following a books closure on August 7. Keppel Reit's portfolio exhibited strong occupancy rates, particularly in Singapore and North Asia, while leveraging increased to 41.3%. The Reit has completed most refinancing for 2024 and focuses on maintaining a resilient balance sheet in a high-interest-rate climate.

$CapLand Ascott Trust(HMN.SG)$: CapitaLand Ascott Trust (Clas) has priced S$150 million worth of perpetual securities at a 4.6% interest rate, as part of its S$2 billion multicurrency debt issuance program. Managed by OCBC as the lead manager and bookrunner, the proceeds are earmarked for redeeming existing perpetual securities callable on September 4. The issuance is slated for August 7, following a steady unit price of S$0.90 on Monday. Clas' portfolio includes the high-occupancy Standard at Columbia student accommodation, highlighting its expansion in longer-stay assets.

$CapLand China T(AU8U.SG)$: CapitaLand China Trust (CLCT) has announced a 19.5% decrease in its distribution per unit (DPU) for the first half of the year, registering S$0.0301 compared to S$0.0374 from the same period last year. The decline is attributed to a 6.3% drop in gross revenue, influenced by lower contributions from its logistics parks and the divestment of CapitaMall Shuangjing. Despite this, the fall was offset somewhat by increased revenue from the retail portfolio following asset enhancement initiatives. Units of CLCT closed at S$0.68, unchanged from the previous day.

$Temasek 2.7% 231025XB#(TEKB.SG)$: Temasek Holdings, Singapore's state investment firm, is set to channel a substantial US$30 billion into the United States over the next five years, shifting its focus due to rising caution in China investments. With the Americas already receiving the largest capital allocation, surpassing China for the first time in a decade, Temasek's portfolio in the region has reached US$63 billion, 22% of its total. In contrast, Chinese investments now represent 19%, while Singapore remains at 27%. Amid global tensions, particularly in tech sectors like semiconductors, Temasek is carefully steering clear of geopolitically sensitive areas, favoring sectors such as electric vehicles and biotech in China. In the US, investments will target AI, semiconductors, and infrastructure, with potential collaboration through real estate subsidiaries like Mapletree Investments and CapitaLand or alongside private equity firms.