SG Morning Highlights | Singapore's Economy Expands by 4.1% YoY in Q3, Beating Expectations

Singapore shares opened higher on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.30 percent to 3584.46 as at 9:10 am.

$CapLand Ascendas REIT (A17U.SG)$ disclosed its plan to sell an industrial property for S$112.8 million, securing a S$45.3 million premium, nearly double its initial purchase price of S$58.4 million. On October 11, the REIT's manager revealed that the proceeds would serve multiple purposes, including debt reduction. They projected a decrease in aggregate leverage from 37.9% to approximately 37.4%, assuming the net proceeds are utilized to repay Clar’s borrowings as of December 31, 2023. The transaction is slated for completion in the fourth quarter of this year and is not anticipated to significantly affect Clar’s net asset value or distribution per unit for the fiscal year ending December 31, 2024. Prior to the announcement, Clar's units closed at S$2.79 on Friday, reflecting a slight decrease of 0.4% or S$0.01.

$YZJ Shipbldg SGD (BS6.SG)$ reported that arbitration proceedings have been initiated by customers against three of its subsidiaries concerning disputes over 10 vessel orders valued at US$900 million, citing breach of contract. The initial hearings are set for November 14, with the claimants seeking US$835 million in compensation. Yangzijiang has stated that these claims are unlikely to materially impact the group’s financial standing for the fiscal year ending December 2024. The company's shares ended last Friday at S$2.50, up by S$0.02 or 0.8%, ahead of this news.

$UOL (U14.SG)$ and $SingaporeLandGrp (U06.SG)$ have announced a joint acquisition of a 50 percent stake in a commercial property valued at A$460 million (S$404.7 million) located in Sydney's central business district. The property development giants will uphold an 80/20 partnership in this venture. Financing will come from internal resources and external borrowings, with the transaction expected to close in the first half of 2025. This move aims to diversify and fortify their revenue streams and expand their footprint in Australia. Market response saw SingLand's shares drop slightly by 0.6 percent to S$1.75, and UOL's by 0.7 percent to S$5.40, just before the announcement on Friday.

$Sasseur Reit (CRPU.SG)$, managed by its dedicated team, reported a record-breaking RMB 276.1 million (S$51 million) in sales during the Golden Week, across its four outlets in China. This surge reflects a 28 percent annual increase and a 55 percent jump from pre-pandemic figures in 2019, marking a significant rebound in domestic consumption. These figures notably surpassed the national growth in retail sales, which saw a 9 percent year-on-year increase. However, Sasseur Reit's shares saw a minor decline of 0.7 percent to S$0.705 on Friday.

$Sabana Reit (M1GU.SG)$ faces scrutiny from unitholders regarding the nomination of three director candidates by the trustee, as the Reit transitions to internal management without a sponsor. An extraordinary general meeting has been scheduled for October 18 to deliberate on these nominations, which are supported by both the requisitionists and the trustee. Sabana Reit’s shares remained stable, closing at S$0.375 on Friday.