SG Morning Highlights | CapitaLand Ascott Trust Reports 15% YoY Growth in Gross Profit for Q1FY2024
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Wednesday; STI up 0.72%
●Analysts Predict Muted 1Q2024 Net Profit for Local Banks
●Singapore's Logistics Supply Per Capita and Merchandise Trade Balanced: Colliers Report
●Stocks to watch: CLAS, First Reit
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Wednesday. The $FTSE Singapore Straits Time Index(.STI.SG$ rose 0.72 percent to 3,296.33 as at 9.09 am.
Advancers / Decliners is 136 to 25, with 109.76 million securities worth S$176.26 million changing hands.
Breaking News
Analysts Predict Muted Q12024 Net Profit for Local Banks
Analysts have estimated a relatively muted net profit for local banks in 1Q2024, with all three expected to be down year-on-year. DBS Group Holdings is predicted to report a net profit of $2.439 billion, which is less than the actual reported net profit of $2.393 billion in 4Q2023 and the $2.57 billion recorded in 1Q2023. OCBC's net profit is likely to be higher quarter-on-quarter, based on analysts' forecasts of $1.71 billion in 1QFY2024, while UOB's 1QFY2024 net profit is forecast at $1.51 billion, higher QoQ but lower YoY. Analysts suggest that net interest margins may remain stable, as loan and asset yields are likely to stay at stable levels, but the main negative factor is the lack of loan growth.
Singapore's Logistics Supply Per Capita and Merchandise Trade Balanced: Colliers Report
According to a study by Colliers, Singapore has a relatively balanced supply of logistics space per capita compared to other key markets in Asia. The city-state, along with Australia and Japan, has about 2 square meters of logistics space available per capita, making it one of the three nations with a balanced supply of logistics space among the 11 Asian markets surveyed by Colliers last year. Singapore also has the highest merchandise trade per logistics space among these three nations, recording US$75,200 worth of trade for every square meter of available space. The high demand for logistics space in Singapore is driven by the rapid growth of the e-commerce sector, coupled with sustained technological advancement and high internet penetration rates.
Stocks to Watch
$CapLand Ascott T(HMN.SG$: CapitaLand Ascott Trust (CLAS) has reported a 15% year-on-year growth in gross profit for the 1QFY2024 ended March 31, due to stronger operating performance and contributions from the trust's new properties. However, no figures were provided in CLAS's update for the first quarter. Excluding acquisitions and divestments, gross profit rose by 7% year-on-year on a same-store basis due to stronger operating performance. During the quarter, CLAS acquired one property and divested five, with 64% of the total sum comprising stable income while the remaining 36% were from growth income. The trust's portfolio revenue per available unit grew by 6% year-on-year to $135 in the 1QFY2024, in line with the pro forma figure pre-Covid-19 in the 1QFY2019.
$First Reit(AW9U.SG$: First Reit has reported a 3.2% year-on-year decline in distribution per unit (DPU) for the first quarter ended March 31, to S$0.006 compared to S$0.0062 in the corresponding year-ago period. The healthcare real estate investment trust's rental and other income also fell 2.7% year-on-year to S$26.1 million for the quarter, while net property and other income decreased 2.1% to S$25.3 million. The financial results were impacted by a stronger Singapore dollar against the Indonesia rupiah and the Japanese yen, with the currency depreciation offset by higher rental income in local currency terms from assets in Indonesia and Singapore, as well as stable rental income in local currency terms from Japan assets. Distributable income was also down 2.2% year-on-year to S$12.4 million, due to a stronger Singapore dollar and a higher finance cost caused by rising interest rates.
$OUEREIT(TS0U.SG$: OUE REIT has secured a $600 million unsecured sustainability-linked loan to help refinance an existing secured debt of $540 million and for general corporate uses. The REIT's average term of debt is lengthened to 3.1 years with a weighted average cost of debt to remain largely stable. The proportion of unsecured debt will also significantly increase to 86.7% post-refinancing on a pro forma basis. This is the first SLL that references OUE REIT's recalibrated sustainability performance targets, which will allow the REIT to enjoy savings in interest costs when the reduction target of absolute greenhouse gas emissions of commercial properties is achieved. Elaine Lam, Head of Global Corporate Banking at OCBC, said that the partnership with OUE REIT underscores OCBC's commitment to enable and support its customers to transition to a low-carbon future.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io
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