DAILY NEWS

Daily News – 29 July 2022 (Fri)

SINGAPORE REAL ESTATE

EL Development, Sim Lian team up to develop strata food factory project in Mandai
The Kuik family’s Sim Lian Holdings and the Lim family behind Evan Lim & Co are teaming up to redevelop their neighbouring ageing freehold industrial buildings in Mandai Estate into a 10-storey strata ramp-up development for food factories.
https://www.businesstimes.com.sg/real-estate/el-development-sim-lian-team-up-to-develop-strata-food-factory-project-in-mandai

Killiney 118 relaunched for collective sale at S$76m
A freehold 6-storey apartment building along 118 Killiney Road has been relaunched for collective sale with an unchanged guide price of S$76 million. Completed in 2013, it has an area of approximately 7,688 square feet (sq ft) and a plot ratio of 3.94. The total existing gross floor area stands roughly at 30,327 sq ft.
https://www.businesstimes.com.sg/real-estate/killiney-118-relaunched-for-collective-sale-at-s76m

Jurong East mall JCube set to make way for mixed-use residential development
Singapore – CapitaLand-owned mall JCube looks set to make way for a mixed-use residential development, based on a proposed amendment to the site’s land use. The proposed amendment to the Urban Redevelopment Authority’s (URA) masterplan, published by the agency on July 22, stated that JCube’s 7,771.2 sq m plot may be changed from commercial use to a primarily residential development that has commercial spaces on the first storey.
https://www.straitstimes.com/singapore/consumer/jurong-east-mall-jcube-set-to-make-way-for-mixed-use-residential-development

Prices, rents of Singapore industrial spaces rise for 7th straight quarter: JTC
Prices and rents of Singapore industrial spaces continued to climb for the seventh straight quarter in Q2. Meanwhile, occupancy rates crept up in the quarter after dipping in Q1, according to JTC’s quarterly market report released on Thursday (Jul 28).
https://www.businesstimes.com.sg/real-estate/prices-rents-of-singapore-industrial-spaces-rise-for-7th-straight-quarter-jtc
https://www.straitstimes.com/business/property/singapore-industrial-space-prices-rents-creep-up-in-q2-jtc

SINGAPORE ECONOMY

MAS tackles greenwashing with new guidelines for ESG funds
Singapore – Funds that are sold to retail investors in Singapore under the label of meeting environmental, social and governance (ESG) standards will now have to back up their claims with new disclosure and reporting guidelines issued by the Monetary Authority of Singapore (MAS) on Thursday (July 28).
https://www.straitstimes.com/business/banking/mas-tackles-greenwashing-with-new-guidelines-for-esg-funds

More pain in store for Singapore home buyers and businesses with latest Fed rate hike
Singapore – If you have a mortgage or your company is highly geared with significant borrowing, the next six to twelve months could be painful for you. That is the message analysts are sounding after the US Federal Reserve on Wednesday (July 27) hiked its key lending rate by a hefty 75 basis points for the second straight month.
https://www.straitstimes.com/business/economy/more-pain-in-store-for-singapore-home-buyers-businesses-with-latest-fed-rate-hike

Slow growth, high inflation on the cards
As widely expected, the US Federal Reserve hiked its benchmark Fed funds rate by 0.75 percentage point on Wednesday, for the second time in two months. But much attention after the event focused on the Fed’s rate-setting committee’s observation that “recent indicators of spending and production have softened” and Fed chairman Jerome Powell’s subsequent comment that “it likely will become appropriate to slow the pace of increases”..
https://www.straitstimes.com/opinion/st-editorial/the-straits-times-says-slow-growth-high-inflation-on-the-cards

Analysts cautious about Asia-Pac despite positive market reaction to Fed rate hike
Global markets have mostly reacted positively to the US Federal Reserve’s interest rate hike, given that it was well within expectations. But market watchers are remaining cautious amid concerns of a global economic slowdown, and highlighted China as a bright spot for upcoming growth.
https://www.businesstimes.com.sg/companies-markets/analysts-cautious-about-asia-pac-despite-positive-market-reaction-to-fed-rate-hike

Workplace safety to be discussed in Parliament after 31st worker death this year
Singapore – The issue of workplace safety will be discussed in Parliament next week after 31 work-related deaths were reported in the first seven months of the year. Radin Mas MP Melvin Yong will speak for up to 20 minutes on the topic next Monday (Aug 1), signalling that the matter continues to be of grave concern.
https://www.straitstimes.com/singapore/workplace-safety-to-be-debated-in-parliament-after-31st-worker-death-this-year

The era of Big-Tech exceptionalism may be over
In the digital world, the laws of physics can be suspended on a programmer’s whim. Equally, that world’s corporate architects have seemed able to defy economic gravity. Since 2005 the digital share of American gross domestic product (GDP) has risen by a third, to 10 per cent.
https://www.businesstimes.com.sg/opinion/the-era-of-big-tech-exceptionalism-may-be-over

Improved margins should cushion banks’ Q2 earnings from market volatility: analysts
The big 3 Singapore banks are expected to post stronger net interest margins (NIMs) for the second quarter of 2022, following a series of interest rate hikes by the Federal Reserve to combat inflation.
https://www.businesstimes.com.sg/banking-finance/improved-margins-should-cushion-banks-q2-earnings-from-market-volatility-analysts

COMPANIES’ BRIEF

Ascott Residence Trust H1 DPS up 14% on travel recovery boost
The return of global travel has lifted the fortunes of Ascott Residence Trust (ART), as it recorded a 14 per cent rise in distribution per stapled security (DPS) to S$0.0233 for H1 ended June.
https://www.businesstimes.com.sg/companies-markets/ascott-residence-trust-h1-dps-up-14-on-travel-recovery-boost

CDL Hospitality Trusts H1 DPS jumps 67.2% on strong leisure demand
CDL Hospitality Trusts distribution per stapled security (DPS) rose by 67.2 per cent to S$0.0204 for its first half ended Jun 30, from S$0.0122 a year ago, as leisure demand accelerated incrementally in the second quarter.
https://www.businesstimes.com.sg/companies-markets/cdl-hospitality-trusts-h1-dps-jumps-672-on-strong-leisure-demand

FHT sees improvement in portfolio performance led by UK recovery
Frasers Hospitality Trust on Friday (Jul 29) said it observed a sustained improvement in the markets it operates in for the 9 months ended Jun 30. This came amid international travel recovery, with Europe leading international arrivals while the Asia-Pacific region lagged, noted FHT’s managers in a business update. European international arrivals were driven by intra-regional demand and reached 57 per cent of pre-pandemic levels.
https://www.businesstimes.com.sg/companies-markets/fht-sees-improvement-in-portfolio-performance-led-by-uk-recovery

Hongkong Land reports 8% rise in H1 underlying net profit
Hongkong Land on Thursday (Jul 28) reported an 8 per cent rise in 1H 2022 underlying net profit to US$425 million from US$394 million a year ago. The property company also reversed into the black, with H1 earnings of US$292 million, compared to a loss of US$865 million a year ago. Hongkong Land directors have declared an interim dividend of US$0.06 per share.
https://www.businesstimes.com.sg/companies-markets/hongkong-land-reports-8-rise-in-h1-underlying-net-profit

Keppel H1 net profit up 65.9% to S$497.5m; higher dividend declared
Conglomerate Keppel Corporation on Thursday (Jul 28) posted a headline net profit of S$497.5 million for the first half of the year ended June, up 65.9 per cent from its earnings of S$299.8 million in the corresponding year-ago period.
https://www.businesstimes.com.sg/companies-markets/keppel-h1-net-profit-up-659-to-s4975m-higher-dividend-declared
https://www.straitstimes.com/business/companies-markets/keppels-first-half-net-profit-up-659-to-4975m-higher-dividend-declared

Starhill Global Reit reports a 1.8% increase in distributable income for FY2021/22
Starhill Global Reit reported a 1.8 per cent increase in distributable income for FY2021/22 to S$89.8 million from S$88.2 million. In a regulatory filing after market close on Thursday (July 28), the Reit reported a 2.8 per cent increase in revenue for the period to S$186.4 million from S$181.3 million. Net property income for FY2021/22 rose in tandem, up 7.4 per cent to S$144.7 million from S$134.7 million.
https://www.businesstimes.com.sg/companies-markets/starhill-global-reit-reports-a-18-increase-in-distributable-income-for-fy202122

Brokers’ take: Analysts see resurgent fountain of wealth in Suntec Reit
Optimism about Suntec Reit office portfolio, as well as recovery in the retail and convention segments, has prompted at least 1 broker to upgrade its call on the counter. Most of the other analysts who cover the stock also see better prospects for the sectors in which Suntec Reit operates, although several have flagged its high leverage.
https://www.businesstimes.com.sg/companies-markets/brokers-take-analysts-see-resurgent-fountain-of-wealth-in-suntec-reit

Digital Core Reit reports lower-than-expected H1 DPU of 2.06 US cents
The manager of Digital Core Reit (DC Reit) on Thursday (Jul 28) reported a distribution per unit (DPU) of US$0.0206 for the first half of 2022, a performance that slightly missed the mark. The pure-play data centre real estate investment trust (Reit) made its trading debut on the Singapore Exchange on Dec 6, 2021, and at the time, it had forecasted a DPU of US$0.0209 for the half year ended Jun 30, according to its interim financial statements.
https://www.businesstimes.com.sg/companies-markets/digital-core-reit-reports-lower-than-expected-h1-dpu-of-206-us-cents