SG Morning Highlights | Singapore-Based Office S-Reits Resilient Despite Concerns Sparked by WeWork
Good morning mooers! Here are things you need to know about today's Singapore:
●Singapore shares opened higher on Monday; STI up 0.67%
●Singapore-Based Office S-Reits Resilient Despite Concerns Sparked by WeWork
●Business receipts of service industries rise 3.9% YoY in 2Q23
●Manufacturing output dips 0.9% in July
●Singapore's data-centre market to surpass 1GW milestone, challenges ahead: Cushman & Wakefield
●Stocks to watch: IHH Healthcare, Wing Tai, Silverlake Axis, Geo Energy
●Latest share buy back transactions
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Market Trend
Singapore shares opened higher on Monday. The $FTSE Singapore Straits Time Index(.STI.SG$ rose 0.67 per cent to 3,211.21 as at 9.08 am.
Advancers / Decliners is 113 to 42, with 92.84 million securities worth S$53.68 million changing hands.
Breaking News
Singapore-Based Office S-Reits Resilient Despite Concerns Sparked by WeWork
Headwinsd for the global office real estate segment has been under focus after office-sharing firm WeWork raised “substantial doubt” in its ability to continue its business. However, Singapore-listed real estate investment trusts (S-Reits) are showing signs of resiliency in their office portfolios. While there are three Reits listed in Singapore that have limited exposure to the New York-headquartered WeWork – CapitaLand Integrated Commercial Trust (CICT), Suntec Reit, and Mapletree Pan Asia Commercial Trust (MPACT) – other Reits with heavy office portfolios such as Keppel Reit and OUE Commercial Reit have also seen consumer sentiment hold up alongside high occupancy rates and growth in rental reversions.
Business receipts of service industries rise 3.9% YoY in 2Q23
Business receipts of the service industries, excluding Wholesale Trade, Retail Trade, Accommodation and Food Services, grew 3.9% YoY and 2.4% QoQ in the second quarter of 2023. The Department of Statistics Singapore (SingStat) said most industries recorded higher revenue during the quarter, increasing overall business receipts. Amongst industries, Recreation & Personal Services had the biggest growth, with receipts rising by 19.6% YoY.
Manufacturing output dips 0.9% in July
Singapore’s manufacturing output fell 0.9% in July 2023 compared to the same month in 2022, according to the latest data released by EDB Singapore. Excluding biomedical manufacturing which recorded a 22.6% YoY decline, July’s manufacturing output would have increased by 1.7% YoY. On a month-on-month comparison, output rose by 4.1%. In July, half of the clusters recorded output increases: transport engineering (+20.7% YoY), electronics (+5% YoY), and chemicals (+2.3% YoY).
Singapore's data-centre market to surpass 1GW milestone, challenges ahead: Cushman & Wakefield
The data-centre market in Singapore is on track to exceed one gigawatt (GW) in 2024. However, because of a limited future supply of such facilities, other markets will overtake its operational capacity in the coming years, said Cushman & Wakefield in its latest Asia-Pacific Data Centre Update. Outside mainland China, Singapore now has the largest data-centre market on a city basis in the Asia-Pacific, with around 917 megawatts (MW) of capacity in operation, and 209MW either planned or under construction.
Stocks to Watch
$IHH(Q0F.SG$ : The dual-listed hospital operator has agreed to buy another 24.5 per cent equity stake in Ravindranath GE Medical Associates (RGE) for 7.4 billion rupees (S$121 million) in cash. This would bump up its stake in the Indian healthcare chain to 98.2 per cent from 73.6 per cent, and allow IHH to assume full control of RGE's operations.
$Wing Tai(W05.SG$ : PROPERTY group sank into the red for the second half-year ended June with a S$50 million net loss, a reversal from a net profit of S$86.4 million in the corresponding period the year before. This was largely due to a loss from its associated and joint venture (JV) companies, reported at S$43.8 million. This was a reversal from last year’s S$90.7 million in share of profits from associated and JV companies. In announcing its results on Friday (Aug 25), the group posted a 4 per cent rise in revenue to S$215.5 million, from S$208 million in H2 2022.
$Silverlake Axis(5CP.SG$ : Enterprise technology, software and services company Silverlake Axis posted a 19.6 per cent drop in net profit for the six months ended Jun 30, 2023, to RM70.3 million (S$20.5 million) from RM87.4 million the year before. Earnings per share for the half year fell by 14.9 per cent to RM0.028 for the period, from RM0.0329 a year ago. Revenue dipped 1.2 per cent to RM373.6 million, compared to the RM378 million recorded in the previous year.
$Geo Energy Res(RE4.SG$ : Indonesian coal producer Geo Energy Resources has entered into a US$4 million loan agreement with Singapore-headquartered electric vehicle (EV) startup Charged Asia, through its newly incorporated subsidiary, Geo Electric.
Also, the company has signalled its continued commitment to the coal market, despite the commodity gaining a negative reputation from banks and investors amid rising environmental, social and governance (ESG) concerns. Geo Energy recently announced that it would fork out just over US$154 million to acquire stakes in two Indonesian coal-linked companies. But the group's chairman and chief executive Charles Antonny Melati said the company is also looking at investments or acquisitions in the renewables space, in a bid to diversify the company’s exposure.
Latest Share Buy Back Transactions
Source：Business Times, SG investors
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