DAILY NEWS

Daily News – 29 January 2016

Singapore Real Estate

Further downside seen for industrial occupancy, rents, prices
The supply of industrial space this year and the next is expected to exert further downward pressures on occupancy rates, JTC said on Thursday as it released data showing a continual slide in industrial prices and rents in the fourth quarter of last year. While it stressed “the wide options available for industrialists planning to expand their operations”, consultants reckoned that such business expansion may not be forthcoming in current economic conditions and hence, rents and prices of industrial space may dip further.
http://www.businesstimes.com.sg/real-estate/further-downside-seen-for-industrial-occupancy-rentsprices
http://www.straitstimes.com/business/property/industrial-property-prices-drop-after-4-years

Prices of completed condos down 0.4% in Dec
The drop in prices of completed private apartments was slower last year than in 2014 , according to new flash estimates out yesterday. The overall NUS Singapore Residential Price Index (SRPI) eased an estimated 0.4 per cent last month, taking the full year fall to 3.3 per cent, compared with a heftier 5 per cent slide in 2014.
http://www.straitstimes.com/business/property/prices-of-completed-condos-down-04-in-dec

Small completed apartments worst price performer in 2015
Prices of completed small condo units and apartments have gone from being the most resilient segment in an NUS price index during 2013 and 2014 to being the worst performer last year. Based on the latest flash estimates for December 2015 from the National University of Singapore (NUS) for its Singapore Residential Price Index (SRPI) series, the sub-index for small units of up to 506 square feet islandwide slipped 4.3 per cent last year.
http://www.businesstimes.com.sg/real-estate/small-completed-apartments-worst-price-performer-in-2015

Massive fire put out at Toa Payoh Industrial Park
http://www.todayonline.com/singapore/massive-fire-put-out-toa-payoh-industrial-park

Companies’ Brief

CDL Hospitality Trusts eyes Europe for more acquisitions
CDL Hospitality Trusts, whose most recently acquired properties in Tokyo and Cambridge helped to mitigate lower income from its other properties in the fourth quarter, is on the lookout for more hotels in city centres in the United Kingdom, Holland, Germany, Spain and Ireland.
http://www.businesstimes.com.sg/companies-markets/cdl-hospitality-trusts-eyes-europe-for-moreacquisitions
http://www.straitstimes.com/business/companies-markets/cdlhts-net-property-income-for-q4-dips-22

Fair-value gains boost Yoma’s Q3 earnings to S$25.2m; revenue falls 5%
Lifted by fair-value gains, real estate player Yoma Strategic Holdings on Thursday reported a net profit of S$25.16 million for the third quarter ended Dec 31, 2015, up from S$7.80 million a year ago. The bottom line was boosted by other gains of S$30.42 million, compared with only S$3.93 million a year ago.
http://www.businesstimes.com.sg/companies-markets/fair-value-gains-boost-yomas-q3-earnings-tos252m-revenue-falls-5

Starhill Global Reit
For Q2 FY16, the Reit’s gearing level remained healthy at 35.7 per cent, with no significant debt refinancing requirement kicking in until 2018. The Reit’s overall occupancy remained high at 98 per cent, while its Singapore assets are almost fully occupied.
http://www.businesstimes.com.sg/companies-markets/brokers-take-217

FHT’s Q1 DPS gets a lift from Sofitel Sydney
Frasers Hospitality Trust (FHT) reported a distribution per stapled security (DPS) of 1.72 cents for the first quarter ended Dec 31, 2015, bolstered by full contribution from Sofitel Sydney Wentworth which was acquired in July 2015. This represented a 7.5 per cent increase from an estimated DPS of 1.6 cents for the same period last year based on a pro-rata basis for comparative purpose. FHT had reported its financials for an actual 171-day period from July 14 to Dec 31, 2014.
http://www.businesstimes.com.sg/companies-markets/fhts-q1-dps-gets-a-lift-from-sofitel-sydney

Ascendas Hospitality Trust Q3 DPS up despite fall in revenue
Ascendas Hospitality Trust on Thursday reported a distribution per stapled security (DPS) of 1.45 Singapore cents for the third quarter ended Dec 31, 2015 (Q3 FY2016). This was up from 1.3 cents in the corresponding period a year earlier. Gross revenue slid 9.5 per cent year-on-year to S$54.9 million, while net property income dropped 9.3 per cent to S$23.4 million.
http://www.businesstimes.com.sg/companies-markets/ascendas-hospitality-trust-q3-dps-up-despite-fallin-revenue
http://www.straitstimes.com/business/companies-markets/company-briefs-ascendas-hospitality-trust

AIMS AMP Reit’s Q3 DPU up 0.7% at 2.85 cents
AIMS AMP Capital Industrial Reit (AA Reit) on Thursday reported a distribution per unit (DPU) of 2.85 Singapore cents for Q3 FY2016 ended Dec 31, 2015. This was up 0.7 per cent from 2.83 cents in the corresponding quarter a year ago. Gross revenue rose 9.5 per cent to S$32.55 million while net property income edged up 2.7 per cent to S$21.06 million. Distribution to unitholders stood at S$18.11 million, or 2.2 per cent higher.
http://www.businesstimes.com.sg/companies-markets/aims-amp-reits-q3-dpu-up-07-at-285-cents

Tuan Sing’s Q4 earnings drop 41% to $14.4m
Net profit fell at Tuan Sing Holdings in the fourth quarter due to a reassessment of some of its properties. It booked fair value losses from its non-hotel investment properties in Perth, Australia, and made an allowance for diminution in value of its development properties here.
http://www.straitstimes.com/business/companies-markets/tuan-sings-q4-earnings-drop-41-to-144m

Views, Reviews & Forum

Real estate crowdfunding: Invest a little, diversify a lot
The confluence of changing consumer behaviour, rapid advancement of the Internet and mobile technology has caused major disruptions in the consumption of goods and services. Innovative disruptions such as Uber for taxi bookings and car sharing and Airbnb for accommodation have torn down many barriers for entering the hospitality industry. Both Uber and Airbnb own no assets but have created billion-dollar companies through solving consumers’ pain points
http://www.todayonline.com/business/real-estate-crowdfunding-invest-little-diversify-lot?singlepage=true