DAILY NEWS

Daily News – 5 Aug 2020 (Wed)

Singapore Real Estate

Prices of toniest flats slipping, but they’re not exactly a steal yet
For those coveting Singapore’s swankiest homes, prices of some may have come off but they’re still far from bargain basement levels. In the posh home segment, prices of new sale or new launches have fallen while resale seems to be resilient.
https://www.businesstimes.com.sg/real-estate/prices-of-toniest-flats-slipping-but-theyre-not-exactly-a-steal-yet

Companies’ Brief

ARA H-Trust posts US$2m H1 net property loss amid Covid-19 pandemic
ARA US Hospitality Trust (ARA H-Trust) on Wednesday posted a net property loss of US$2 million and no distributable income for the half year ended June 30, 2020 as earnings took a hit due to the impact of the Covid-19 pandemic.
https://www.businesstimes.com.sg/companies-markets/ara-h-trust-posts-us2m-h1-net-property-loss-amid-covid-19-pandemic

Reits, business trusts post better showing
Three CapitaLand units emerged at the top of the ranking of real estate investment trusts (Reits) and business trusts in the latest Singapore Governance and Transparency Index (SGTI) 2020. CapitaLand Commercial Trust, CapitaLand Mall Trust and Ascott Residence Trust were ranked the best three…
https://www.businesstimes.com.sg/companies-markets/reits-business-trusts-post-better-showing

Sats, Singtel, CDL lead the pack in SGTI2020 ranking
Scores for the Singapore Governance and Transparency Index (SGTI) again reached a new high this year, with companies achieving a mean overall score of 67.9 points – up 8.6 points from the previous year. Ground handler and caterer Sats came out on top with a score of 131 points, moving up five places from 2019 when it scored 115 points.
https://www.businesstimes.com.sg/companies-markets/sats-singtel-cdl-lead-the-pack-in-sgti2020-ranking
https://www.straitstimes.com/business/companies-markets/sats-capitaland-reits-lead-in-governance-and-transparency-here

Franklin Templeton merges with Legg Mason, with ‘minimal cuts’ in Singapore
Franklin Templeton has completed its merger with fund management company Legg Mason at end-July with minimal staff cuts in Singapore, with the US offices absorbing most of the 8 per cent staff layoffs from its combined workforce of about 12,600.
https://www.businesstimes.com.sg/banking-finance/franklin-templeton-merges-with-legg-mason-with-minimal-cuts-in-singapore

FLCT to sell stake in facility, buy 2 properties
Frasers Logistics & Commercial Trust (FLCT) is looking to acquire two properties in Australia and the UK from its sponsor Frasers Property, as well as sell its remaining half stake in a cold storage facility in Australia, said the trust’s manager, which also released an update saying that the coronavirus pandemic has not had a material impact on FLCT’s portfolio.
https://www.businesstimes.com.sg/companies-markets/flct-to-sell-stake-in-facility-buy-2-properties

OUE posts S$207m H1 loss; no interim dividend
Property developer OUE posted a S$207.2 million net loss for the six months ended June, plunging the mainboard-listed company into the red from a S$61.9 million net profit a year ago. The steep loss was mainly due to a S$310 million fair value loss on the US Bank Tower, which an OUE unit sold for US$430 million on July 17.
https://www.businesstimes.com.sg/companies-markets/oue-posts-s207m-h1-loss-no-interim-dividend

Quarz Capital’s recent trail of activist calls
Activist investor Quarz Capital Management has resurfaced, having built a substantial stake in Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) and arguing that the buyout bid from ESR-Reit is “too low”. The Business Times (BT) looks at some of its recent activist engagements with listed companies in Singapore…
https://www.businesstimes.com.sg/companies-markets/quarz-capital%E2%80%99s-recent-trail-of-activist-calls

Sabana Reit clarifies proposed merger with ESR-Reit not an asset sale
The proposed merger of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) with ESR-Reit is not an asset sale, but a merger by way of a trust scheme of arrangement that will allow unitholders to stay invested in a “stronger, larger and more resilient enlarged Reit (real estate investment trust)”, Sabana Reit’s manager clarified in a bourse filing on Wednesday.
https://www.businesstimes.com.sg/companies-markets/sabana-reit-clarifies-proposed-merger-with-esr-reit-not-an-asset-sale

Hong Kong developer Swire Properties obtains HK$1b green loan from OCBC
Swire Properties has signed a five-year HK$1 billion (S$177.4 million) green loan with OCBC Bank. The move is part of the Hong Kong-listed developer’s efforts to implement green initiatives at its properties around the world and drive green financing in the real estate industry, it said on Tuesday in a press statement.
https://www.businesstimes.com.sg/companies-markets/hong-kong-developer-swire-properties-obtains-hk1b-green-loan-from-ocbc

Yanlord unit, GIC affiliate ink agreement to co-invest in China residential projects
Yanlord (China) Investment Group, a unit of property developer Yanlord, has inked an investment agreement of up to seven billion yuan (S$1.4 billion) with an affiliate of Singapore’s sovereign wealth fund GIC, to co-invest in China residential projects.
https://www.businesstimes.com.sg/companies-markets/yanlord-unit-gic-affiliate-ink-agreement-to-co-invest-in-china-residential
https://www.straitstimes.com/business/companies-markets/yanlord-gic-to-co-invest-up-to-138-billion-in-residential-projects-in

Views, Reviews, Forum & Others

What GDP doesn’t measure and why this should change
Gross Domestic Product – or GDP in short – has been a mainstay measure of our economic progress over decades. Nations clamour, excessively so, for GDP rankings as it signifies not only a country’s good “grades” on their economy report card but also their standing in the international community. Countries often tout these GDP figures as indications of progress and well-being, and countries with high GDP are labelled as “developed”.
https://www.businesstimes.com.sg/opinion/what-gdp-doesnt-measure-and-why-this-should-change

Countries must seize opportunity to build back better
The coronavirus pandemic represents a significant challenge to global health and economies. Developing countries are especially vulnerable to its long-term effects. While governments have naturally turned their attention towards the urgent health and jobs crises, they must not lose sight of the importance of maintaining access to critical infrastructure services…
https://www.businesstimes.com.sg/opinion/countries-must-seize-opportunity-to-build-back-better

Cromwell European Reit: A resilient and high-yielding pan-European Reit that investors should not overlook
Many European countries have been easing out of their lockdowns. With Europe gradually returning to business-as-usual, investors should not overlook the investment opportunities in the European region. In this article, we take a look at Cromwell European Reit (Cromwell E-Reit), the only Reit listed on SGX with a pan-European exposure.
https://www.businesstimes.com.sg/wealth-investing/cromwell-european-reit-a-resilient-and-high-yielding-pan-european-reit-that

Diversifying risks in an income strategy
Back in March, we were as stunned as anyone to be marching into an economic recession and an unprecedented global health crisis. Three months later, the global economy is once again expanding and financial asset prices are staging one of their strongest quarters in history.
https://www.businesstimes.com.sg/wealth-investing/diversifying-risks-in-an-income-strategy

Update on COVID-19 (Coronavirus Disease 2019) Situation

Coronavirus: Phase 2 has gone well but curbs must be lifted gradually, say experts
Singapore has made steady progress towards reopening the country, moving smoothly into the next stage of phase two while successfully keeping community transmissions low. But restrictions could return any time, experts stressed, as they have in many nations battling a resurgence of Covid-19 cases.
https://www.straitstimes.com/singapore/phase-2-has-gone-well-but-curbs-must-be-lifted-gradually-experts

Better connectivity is on the move
It is welcome news that Singapore and Malaysia have officially resumed the project for the cross-border Rapid Transit System (RTS) Link between Woodlands and Johor Baru. This was done with a ceremony one day ahead of a final deadline following multiple postponements. Not unexpectedly, the start of the service has been pushed back from the previous timetable of end-2024 to the new target of end-2026.
https://www.straitstimes.com/opinion/st-editorial/better-connectivity-is-on-the-move

Singapore, US agree on importance of Covid-19 vaccine availability
Foreign Minister Vivian Balakrishnan and United States Secretary of State Mike Pompeo agreed on the importance of ensuring that Covid-19 vaccines be made available globally, Singapore’s Ministry of Foreign Affairs said yesterday.
https://www.straitstimes.com/asia/se-asia/spore-us-agree-on-importance-of-vaccine-availability
*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation