DAILY NEWS

Daily News – 26th October 2018

Singapore Economy

Asean key to Singapore’s future amid US-China tensions, say economists
The Asean market is crucial for Singapore’s future growth, not least against the backdrop of United States-China trade tensions, said panellists at the 11th Singapore Economic Policy Forum on Thursday. Singapore’s long-term growth story has been one of slowing growth and rising volatility, said Nanyang Technological University (NTU) professor of economics Tan Kong Yam.
https://www.businesstimes.com.sg/government-economy/asean-key-to-singapores-future-amid-us-china-tensions-say-economists

Singapore’s AUM industry up 19% to S$3.3 trillion in 2017
Total assets managed by Singapore-based asset managers rose by 19 per cent to S$3.3 trillion at the end of 2017, compared to S$2.7 trillion in 2016, outpacing the 15 per cent average growth rate of the previous five years. The growth was broad-based, across traditional and alternative assets, on higher valuations and inflows to Asian markets.
https://www.businesstimes.com.sg/banking-finance/singapores-aum-industry-up-19-to-s33-trillion-in-2017

Singapore Real Estate

Industrial property sector outlook stable in Q4 and beyond
The outlook for the industrial property sector is expected to remain stable going into the fourth quarter and beyond, although the impact from the US-China trade war remains a potential risk. In the third quarter, industrial prices edged up 0.1 per cent from the previous quarter, while industrial rents slipped 0.1 per cent – marking a decline for the 14th consecutive quarter – owing to softer rents in multiple-user factories, single-user factories and business parks, JTC’s quarterly report showed.
https://www.businesstimes.com.sg/real-estate/industrial-property-sector-outlook-stable-in-q4-and-beyond
https://www.straitstimes.com/business/property/prices-rents-of-industrial-space-in-q3-stable

Bank, property and tech sectors hit by poor sentiment
Local banks and technology heavyweights including Venture Corp have slipped back to their 2017 levels, while some counters of property developers have fallen to levels last seen in 2016. This happened as a confluence of factors, including trade war and global growth concerns, as well as local property cooling measures, continued to weigh on investor sentiment.
https://www.straitstimes.com/singapore/bank-property-and-tech-sectors-hit-by-poor-sentiment

Companies’ Brief

Duo offices, hotel, retail space said to be going on the market
M+S Pte Ltd, the joint-venture between Malaysia’s Khazanah Nasional and Singapore’s Temasek Holdlings, has appointed JLL to advise it on the sale of the office, hotel and retail components of the Duo project along Beach Road, said sources. They told The Business Times that the combined asking price for the above components is about S$2 billion.
https://www.businesstimes.com.sg/real-estate/duo-offices-hotel-retail-space-said-to-be-going-on-the-market

JustCo to open latest co-working space in Q4 2019
Co-working outfit JustCo will move into the entire second floor of Fraser Property’s China Square Central complex, once the building’s current asset enhancement initiative is completed. JustCo aims to open its latest space in the fourth quarter of 2019, adding to its current portfolio of 13 centres in Singapore. Its Marina Square and MacDonald House offices were opened earlier this year.
https://www.businesstimes.com.sg/real-estate/justco-to-open-latest-co-working-space-in-q4-2019
https://www.straitstimes.com/business/property/co-working-start-up-justco-takes-up-2nd-floor-of-fraser-propertys-china-square

Lippo’s troubles spell credit risks for Reits, but OUE could benefit
The Indonesian authorities’ probe into alleged bribery linked to the Lippo Group’s US$21 billion Meikarta property project near Jakarta is unlikely to have a significant impact on Riady-linked counters listed in Singapore, analysts say. This is largely because of how the group’s Indonesia and Singapore businesses have been, for the most part, divided between the two brothers, James and Stephen Riady.
https://www.businesstimes.com.sg/companies-markets/lippos-troubles-spell-credit-risks-for-reits-but-oue-could-benefit

Ascendas Reit posts 4.2% fall in Q2 DPU
Ascendas Reit on Thursday reported a 4.2 per cent fall in distribution per unit (DPU) to 3.887 Singapore cents for the second quarter ended Sept 30, from 4.059 cents in the same period last year. Ascendas noted that the DPU was impacted by an increase in the number of units in issue.
https://www.businesstimes.com.sg/companies-markets/ascendas-reit-posts-42-fall-in-q2-dpu

AA Reit’s Q2 DPU dips 2% to 2.5 Singapore cents
AIMS AMP Capital Industrial Reit (AA Reit) has posted a second-quarter distribution per unit (DPU) of 2.50 Singapore cents, down 2 per cent from 2.55 cents for the same period a year earlier. Gross revenue for the fiscal second quarter ended Sept 30 was S$29.4 million, down 0.3 per cent. Net property income was 0.5 per cent lower at S$19.3 million.
https://www.businesstimes.com.sg/companies-markets/aa-reits-q2-dpu-dips-2-to-25-singapore-cents

CapitaLand Mall Trust DPU up 5% at 2.92 Singapore cents for Q3
CapitaLand Mall Trust (CMT) has posted a third-quarter distribution per unit (DPU) of 2.92 Singapore cents, up 5 per cent from the same period a year earlier. Gross revenue for the three months to Sept 30 was S$170.5 million, up 0.7 per cent from the same period a year earlier.
https://www.businesstimes.com.sg/companies-markets/capitaland-mall-trust-dpu-up-5-at-292-singapore-cents-for-q3

Marina Bay Sands Q3 earnings slide on weaker VIP segment
A slump in VIP play at Marina Bay Sands has dragged third-quarter Ebitda (earnings before interest, tax, depreciation and amortisation) down 5.2 per cent to US$419 million from the same period a year earlier. Lower casino rolling chip volume – which typically refers to VIP play – tumbled 24.9 per cent from the same period a year earlier to US$7.1 billion in the three months ended Sept 30.
https://www.businesstimes.com.sg/companies-markets/marina%C2%A0bay%C2%A0sands-q3-earnings-slide-on-weaker-vip-segment

Parkway Life Reit Q3 DPU falls 4.1% to 3.23 cents
Healthcare-focused real estate investment trust (Reit) Parkway Life Reit (PLife Reit) announced a distribution per unit of 3.23 Singapore cents for its third fiscal quarter, down 4.1 per cent from the year-ago period.
https://www.businesstimes.com.sg/companies-markets/parkway-life-reit-q3-dpu-falls-41-to-323-cents