SG Morning Highlights | CapitaLand Ascendas Reit's DPU Falls 6.1% YoY on Rising Interest Rates
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Friday; STI up 0.46%
●Singapore's Prime Logistics Rents to Lead Asia Pacific's Slowing Industrial Real Estate Market
●Investors to Stay Cautious Navigating Singapore's Real Estate Market in 2024
●Stocks to watch: CapitaLand Ascendas Reit
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Friday. The $FTSE Singapore Straits Time Index(.STI.SG$ rose 0.46 percent to 3,157.62 as at 9.09 am.
Advancers / Decliners is 104 to 41, with 98.85 million securities worth S$88.50 million changing hands.
Breaking News
Singapore's Prime Logistics Rents to Lead Asia Pacific's Slowing Industrial Real Estate Market
Singapore's prime logistics rents are projected to grow by 6% in 2024 and lead Asia Pacific's slowing industrial real estate market, according to CBRE. The property agency sees rental growth for prime logistics in Singapore dramatically easing this year after surging by 14% in 2023, largely due to the high volume of supply coming online next year.
CBRE said Singapore's prime logistics market will still likely record the highest annual rental growth in the region despite the slowdown. Across the Asia Pacific, CBRE expects leasing activity in the sector to stay muted as logistics occupiers turn cautious with their expansion plans.
Investors to Stay Cautious Navigating Singapore's Real Estate Market in 2024
Investors are likely to stay cautious navigating Singapore's real estate market this year due to prolonged market uncertainties and moderate growth in prices and rents across all sectors, according to CBRE. The property agency estimated overall real estate investments in Singapore to rise 15% this year, recovering from the 29% year-on-year drop in 2023 but still lower than the $30bn of investments logged in 2022.
CBRE Head of Research Tricia Song estimated core CBD Grade A office rents to rise slightly faster at 2% to 3% in 2024 from the 1.7% increase in 2023, fueled by strong demand for high-quality buildings in the city center.
Stocks to Watch
$CapitaLandInvest(9CI.SG$: CapitaLand Ascendas Reit (Clar) saw distribution per unit (DPU) fall 6.1% year on year to 7.441 cents for the six months ended Dec 31, 2023, due to rising interest rates. The Reit's gross revenue for the second half of the year rose 11% to $761.7 million, while net property income (NPI) was up 4.6% to $514.3 million. For financial year 2023 overall, Clar's DPU was down 4% year on year to 15.16 cents, attributed to higher interest expenses. Clar's full-year revenue was up 9.4% to $1.5bn, driven by acquisitions completed in FY2023 and the prior year.
Share Buy Back Transactions
Source: Business Times, SG investors
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