Singapore stocks to watch Friday: SIA, Mapletree Commercial Trust, Ascendas REIT

Singapore two-dollar billsSingapore two-dollar bills

Singapore Airlines

Singapore Airlines (SIA) said on Thursday fiscal first quarter net profit fell 59 percent to S$139.6 million from S$337.9 million a year ago, weighed down by rising fuel costs and the absence of one-off gains.

Excluding the one-off items in the year-ago period, group net profit would have decreased by S$53 million or 27.5 percent, SIA said in a filing after the close of trading.

Revenue for the three months ended June dipped to S$3.84 billion from S$3.86 billion a year ago, as the rise in passenger and cargo revenue was offset by the lack of non-recurring items.

On the outlook, SIA said passenger traffic is expected to grow in the coming months, although competition in key operating markets persists. Costs remain under pressure, especially from higher fuel prices.

It added cargo demand remained steady despite concerns over global trade tensions, although an escalation of tensions could potentially have a longer-term impact.

Read more: Singapore Airlines fiscal 1Q net profit tumbles as fuel prices climb

Mapletree Commercial Trust

Mapletree Commercial Trust (MCT), whose properties include VivoCity, Singapore’s largest mall, announced an unchanged distribution per unit of 2.23 Singapore cents for the three months ended June.

Gross revenue for the fiscal first quarter edged 0.7 percent higher to S$108.5 million, while property operating expenses declined 4.2 percent to S$22.6 million, the property trust said on Thursday after the close of trading.

MCT said shopper traffic at VivoCity rose 0.4 percent year-on-year, but tenant sales were temporarily affected by spaces vacated to make way for the public library on level three and new concept stores on level one.

Gross revenue and net property income from offices and business parks rose 1.5 percent and 1.9 percent, respectively, helped by step-up rents in existing leases at PSA Building and Mapletree Business City.

Ascendas Real Estate Investment Trust

Ascendas Real Estate Investment Trust said on Thursday it will buy a portfolio of 12 logistics properties in the United Kingdom for 207.27 million pounds, or around S$373.15 million, to expand its geographical footprint beyond Asia and Australia.

Ascendas REIT’s sponsor, Ascendas-Singbridge Group, will provide the trust with asset management and related services in the U.K.

“The portfolio has a long weighted average lease expiry (WALE) of 14.6 years and is largely comprised of freehold land. These are appealing attributes that will strengthen our existing portfolio,” William Tay, CEO of Ascendas REIT’s management company, said in a statement.

Completion is expected to take place in the third quarter of 2018.

Keppel Corp., MindChamps

Keppel Capital Ventures, an indirect unit of conglomerate Keppel Corp., has signed a non-binding memorandum of understanding (MOU) with MindChamps PreSchool to establish a real estate fund that will invest in preschools and other early learning assets in the Asia-Pacific region.

The Keppel unit and MindChamps will each hold a 50 percent stake in the proposed fund, which will have an initial target size of S$200 million, the two companies said in a joint statement on Thursday.

The fund will lease its real estate assets to MindChamps as well as its franchisees and licensees on long-term basis.

MindChamps currently has 15 company-owned-company-operated centers in Singapore and Australia, as well as 46 franchisee-owned-franchisee-operated centers in Singapore, Australia, Abu Dhabi, Dubai, the Philippines and Vietnam.

Frasers Hospitality Trust

Frasers Hospitality Trust said on Thursday that distribution for the fiscal third quarter ended 30 June will be 9.3 percent lower at 1.1226 Singapore cents per unit due to the weaker performance at its properties in Australia and Malaysia.

Read more: Frasers Hospitality Trust fiscal 3Q net property income falls 2.8 percent

Noble Group

Beleaguered commodities trader Noble Group said on Thursday it expects to report a net loss of US$115 million to US$140 million for the second quarter ended 30 June due to restructuring and financing expenses.

Read more: Noble guides for second-quarter net loss of amid restructuring costs

CDL Hospitality Trusts

CDL Hospitality Trusts will pay an increased distribution per stapled security of 2.14 Singapore cents for the second quarter, an increase of 2.9 percent from a year earlier.

Revenue fell 0.3 percent to S$47.7 million as contributions from the recently acquired Pullman Hotel Munich in Germany and The Lowry Hotel in Manchester, United Kingdom, were largely offset by the loss of income from two Australian hotels that were divested in January 2018.

Revenue was also impacted by the closure of Dhevanafushi Maldives Luxury Resort for renovations in June 2018, the hotel trust said in a statement on Friday.

Perennial Real Estate

Perennial Real Estate Holdings, through its 45 percent owned joint venture vehicle, Perennial HC Holdings, has been awarded the tender by the People’s Government of Xiqing District, Tianjin to develop three plots of land which are located adjacent to the Tianjin South High Speed Railway, the company said in a stock market filing on Friday.

The tender price for the land, which covers some 76,900 square meters, is RMB718 million, or approximately S$150.3 million.

CapitaLand

CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited, has entered a strategic alliance with Philippine real estate developer, Cebu Landmasters Inc. (CLI), to develop and manage serviced residences.

Under the alliance, both parties will seek properties for CLI to develop into serviced residences for Ascott to manage, CapitaLand said in a statement on Thursday.

Ascott and CLI have signed management contracts for four properties offering over 800 serviced residential units in the prime business districts of Bacolod, Cebu City and Davao City, and the partners hope to increase the figure to 1,600 units by 2022.

Get Shenton Wire headlines in your inbox