SG Morning Highlights | Distressed Property Listings Jump in Q1 as Bankruptcies Rise
Good morning mooers! Here are things you need to know about today's Singapore:
● Singapore shares opened lower on Tuesday; STI down 0.26%
● Distressed property listings jump in Q1 as bankruptcies rise
● Stocks to watch: First Reit, Dasin Retail Trust, Aims Apac Reit
● Latest share buy back transactions
-moomoo News SG
Market Trend
Singapore shares opened lower on Tuesday. The $FTSE Singapore Straits Time Index(.STI.SG$ was down 0.26 per cent to 3,316,04 as at 9.12 am.
Advancers / Decliners is 80 to 66, with 79.46 million securities worth S$112.24 million changing hands.
Breaking News
The number of mortgagee listings jumped in the first quarter (Q1) of 2023, with more distress sales expected in the second half of the year as bankruptcy applications increase.
The number of bankruptcy applications rose quarter on quarter by 5.6 per cent to 959 in Q1 2023, according to data from the Ministry of Law. It is also 22.2 per cent higher than the number of applications in Q1 2022.
Singapore's inflation fell across the board in March – with the exception of energy – largely in line with economists' expectations, according to official figures on Monday (Apr 24).
Headline inflation was 5.5 per cent year on year, down from 6.3 per cent in February and matching private-sector economists' median estimate in a Bloomberg poll. This was the slowest pace in 11 months as private transport inflation declined.
Core inflation – which excludes accommodation and private transport – decelerated to an eight-month low of 5 per cent, from 5.5 per cent in February. This was marginally lower than economists' 5.1 per cent forecast, led by lower inflation for services, food as well as retail and other goods.
Stocks to Watch
$Dasin Retail Tr(CEDU.SG$: Dasin Retail Trust has terminated two leases in its malls in China over arrears in rent and utilities payment.
In a bourse filing on Monday (Apr 24), the real estate investment trust's (Reit) trustee-manager announced the terminations of the lease of an anchor Carrefour China outlet in the Ocean Metro Mall over unpaid rent amounting to 7.3 million yuan (S$1.4 million), along with the lease held by electronics retailer Gome in the Shiqi Metro Mall over 8.4 million yuan in rental arrears and utilities fees.
The Carrefour lease was originally for a term of 20 years, commencing from Dec 28, 2014, for a total leased area of 17,770 square metres (sq m), the Reit's trustee-manager said.
$AIMS APAC Reit(O5RU.SG$: AIMS APAC Reit has divested 541 Yishun Industrial Park A for $12.88 million. The sale price represents an 8.2% premium to the property's valuation of $11.9 million as at March 31.
The sale was made via a sale and purchase agreement (SPA) between the REIT's trustee, HSBC Institutional Trust Services (Singapore) Limited, and Cantal United Pte Ltd.
The net proceeds from the divestment will be used to repay the REIT's debt initially and may be recycled for asset enhancement initiatives (AEIs), redevelopment opportunities and selective acquisitions.
$First Reit(AW9U.SG$: First Reit's distribution per unit (DPU) for the first quarter ended March has fallen 6.1 per cent on-year to 0.62 Singapore cent from 0.66 cent in Q1 2022.
On Tuesday (Apr 25), the healthcare-focused trust's manager said this was largely due to higher financing costs and the depreciation of foreign currencies against the Singapore dollar.
Rental and other income for Q1 was up 4.9 per cent to S$26.8 million, from S$25.5 million the previous year. Net property and other income rose 2.7 per cent year on year to S$25.8 million from S$25.2 million.
Latest Share Buy Back Transactions
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KB trader : Obviously real estate market in SG is turning down… higher rates will start to be felt second half of the year. This is call interest rate lag effect, rates hit above 3.5% about 6 months ago and existing mortgages refinancing will be in full swing in one year time… that will mean October this year onwards full impact will hit existing borrowers.. 2nd Qtr 2024 will see mortgagee sales in big numbers. Hold on tight.
The One and one KB trader: do you mean condo prices as well?
KB trader The One and one: I certainly think so.. and that will coupled with a downward revision of housing rent which we are starting to feel… if housing vacancy rates start to move up the impact will be worse. The reason why no further cooling measures are being put up is probably Government knows this is coming.