SG Morning Highlights | OCBC Prices US$500 Million Fixed-Rate Subordinated Notes
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Tuesday; STI up 0.12%
●HDB's Self-Listing Portal May Impact Real Estate Agents, But Many Sellers May Still Engage Them
●Warehouse Occupancy and Rents to Decline Amid Increased Supply, Reports Colliers
●Stocks to watch: OCBC, Thaibev
●Latest share buy back transactions
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Market Snapshot
Singapore shares opened higher on Tuesday. The $FTSE Singapore Straits Time Index(.STI.SG$ rose 0.12 percent to 3307.71 as at 9:28 am.
Advancers / Decliners is 136 to 77, with 148.42 million securities worth S$176.19 million changing hands.
Breaking News
HDB's Self-Listing Portal May Impact Real Estate Agents, But Many Sellers May Still Engage Them
The new self-listing portal by HDB is expected to impact the need for real estate agents, but experts believe that many will still engage agents despite the new option. Property agents provide customised market insights, highlight suitable opportunities, and vet interested parties based on their experience in transacting properties. Additionally, they have a wide range of digital tools to help clients assess sales and price trends, as well as market properties more efficiently. The portal is expected to boost transparency in the market and streamline the buying and selling process, allowing for a faster transaction period. However, not all sellers want to deal with sales matters, and some may require assistance in paperwork and documentation or prefer to maintain their anonymity. The platform may also prevent price manipulation and manage price hikes, leading to more realistic asking prices.
Warehouse Occupancy and Rents to Decline Amid Increased Supply, Reports Colliers
According to a report by Colliers, warehouse occupancy rates and rents are set to decline further amid rising supply. The report noted that more space will hit the market due to developments completed in 2025 and some tenants downsizing or relocating because of high rents. Occupiers might also be resistant to the higher rents and may opt to develop sites themselves, partner with a developer, or relocate to cheaper locations. In the first quarter of 2024, warehouse rents increased 2.0% QoQ, whilst occupancy declined to 91.1% from 91.6%. However, Colliers pointed out that the increase was due to tight supply, especially in the prime logistics space.
Stocks to Watch
$OCBC Bank(O39.SG$: OCBC has announced the pricing of US$500 million of fixed-rate subordinated notes to be issued under its US$30 billion global medium-term note program. The notes will bear an annual coupon rate of 5.52% from the issue date to the call date on May 21, 2029, priced at 100%. If the notes are not redeemed, their interest rate from the call date until maturity date on May 21, 2034, will be reset to a per-annum fixed rate equal to the then-prevailing five-year US Treasury rate and 1.03%. The net proceeds from the note issuance will be used for general corporate purposes. The notes are expected to qualify as Tier-2 capital and are rated "A2" by Moody's Investors Service, "BBB+" by S&P, and "A" by Fitch Ratings. The notes are slated to be listed on the Singapore Exchange on May 23.
$ThaiBev(Y92.SG$: Thai Beverage's net profit for the second quarter ended March 31, 2024, fell 4.9% to 7 billion baht from 7.4 billion baht in the previous corresponding period due to a lower share of profits from its associated companies and joint ventures. Sales revenue for Q2 rose 6.3% to 71.6 billion baht from 67.4 billion baht, due to an increase in sales in its beer, non-alcoholic beverages, food, and spirits businesses. For the half-year period, sales revenue slipped 0.4% to 147.7 billion baht, and net profit fell 5.6% to 15.2 billion baht, largely due to a 58.8% decline in contributions from its associated companies. An interim dividend of 0.15 baht per share was approved for the half-year, unchanged from a year earlier.
$LHN(41O.SG$: LHN Group, a real estate management services group, reported a net profit of SGD 13m for the half-year ended March 31, 2024, down 23.4% from SGD 16.9m the year before. The group's revenue increased 27.2% to SGD 54.5m from SGD 42.9m in H1 2023, mainly due to the increase in revenue from the Space Optimisation Business and the Facilities Management Business. The leasing of its industrial, residential, and commercial properties comes under space optimisation, while its facilities management business covers FM services and car parking management. LHN has proposed an interim dividend of SGD 0.01 per share for H1 2024, which is the same amount declared in the year-ago period. In its business outlook, LHN expects its co-living business to drive the group's residential segment forward, supported by a pipeline of new projects, recent tender wins, and acquisition plans.
$Sasseur Reit(CRPU.SG$: Sasseur REIT's rental income under its entrusted management agreement (EMA) model for the first quarter ended March rose 1.2% YoY to 172.6 million yuan (S$32.6 million), but was 1.4% down in Singapore-dollar terms due to a 2.5% depreciation of yuan against Singapore dollars. The moderate rise in rental income under EMA model in yuan was mainly driven by a 3% rise for fixed component income of 115.2 million yuan, offset by a 2.2% decline in the variable component of 57.4 million yuan due to a higher sales base in the first quarter last year from strong retail spending post-Covid. The REIT has changed to half-yearly from quarterly distributions with effect from FY2024, to save compliance and administrative resources required for quarterly distributions. Net asset value per unit stood at S$0.84 at the end of March, and portfolio occupancy of 97.9% registered a new record high.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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