When real estate investment trusts (REITs) in Singapore need capital for an asset acquisition or expansion, they normally turn to the equity market to raise funds through a secondary share placement or a rights issue. For this reason, REITs have earned the reputation for asking back what they have given to shareholders. REITs are highly sought-after investments because they generate high dividends. For...
Singapore REITS
Industrial real estate investment trusts (REITs) remain attractive investments, OCBC Investment Research said yesterday as it kept its "overweight" call, citing their healthy debt maturity profiles, increased investment activity and high yields. In OCBC's research update, analysts Kevin Tan and Eli Lee said that industrial landlords continued to be very engaged in their capital management...
Real estate management firm ARA Asset Management (ARA) has received approval from the Singapore Exchange (SGX) to list a yuan-denominated real estate investment trust (REIT) in the city state. The Dynasty Real Estate Investment Trust (Dynasty REIT) will be the first share sale in Singapore to be denominated in the Chinese currency. It will also be the second initial public offering (IPO) denominated in...
Hotel and serviced residence owner Far East Hospitality Trust aims to tap South-east Asia's booming tourism demand and grow its portfolio value by 50 per cent over the next two years. Far East Hospitality expects to acquire a hotel and two serviced residences - Orchard Parksuites and Orchard Scotts Residences - from its sponsor Far East Organisation within the next 24 months, increasing its portfolio by...
Shopping mall developer CapitaMalls Asia is acquiring its third mall in Wuhan, China. On a completed basis, the investment cost of the shopping mall is expected to be about S$228.3 million (RMB1,156 million/HK$1,413.5 million) The developer had acquired the mall from a subsidiary of a state-owned construction enterprise, China Railway Construction Corporation Limited (CRCC). Scheduled to be completed in...
Far East Organization has priced its hospitality trust listing at 93 Singapore cents per stapled security, the top end of its indicative price range. The public offer opens at 9am on Friday, and the trust manager said it believes the timing of the listing is right. Targeting to raise about S$1.49 billion, Far East Hospitality Trust is the largest initial public offering (IPO) in Singapore this year. The...
Global Logistic Properties (GLP) has reported a 53.7 per cent increase in first quarter (ended June 30) net profit to US$153 million (S$190.6 million), driven by a strong operational performance in China and growth in its Japanese fund management platform. Asia's largest logistic facilities provider said turnover rose 32 per cent year-on-year to US$170.5 million (S$212.4 million), boosted by a 75 per cent...
Singapore's Real Estate Investment Trusts (REITS) have outperformed the broader market so far this year rising 22 per cent compared to the benchmark Straits Times Index's 14 per cent gain. But analysts said such higher capital gains are adding pressure on yields. Reaching higher are the average Distribution Per Unit from REITS. On average, analysts noted that dividends grew 2 per cent from the previous...
CDL Hospitality Trusts (CDLHT) has announced a 10.2 per cent increase in its second-quarter distribution per unit (DPU) to 2.92 cents, up from 2.65 cents in the same period last year. The trust said its gross revenue climbed 6.0 per cent to S$36.6 million, due mainly to higher revenue per available room (RevPAR) and strong growth in visitor arrivals. Its net property income rose by 5.9 per cent from...
Singapore's real estate investment trusts (S-REITs) are well placed to weather tight operating conditions, according to a recently published report by Standard & Poor's Ratings Services. The report, titled Why Singapore REITs Can Survive Their Financial Fitness Test, said that the outlook for Singapore's commercial-leasing segment is becoming more challenging and the funding environment is likely to...