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Stocks to watch: IReit, Banyan Tree, Noble, HTL, retail and office Reits, Tiger, YuuZoo, Second Chance
IReit Global: IReit Global on Thursday said Deutsche Telekom's real estate leasing unit, GMG Generalmietgesellschaft mbH, will be exercising its lease extension option in the Münster South office building on the existing rental rate.
With this, on a pro forma basis, the weighted average lease expiry of the Münster Campus as at end-December 2015 will increase from 3.8 years to 4.9 years.
Banyan Tree: Malaysia's George Town, Ipoh and Melaka are secondary cities that Banyan Tree Hotels & Resorts is keen to put down roots in, should the right opportunity come along. Borneo's Sabah with its renowned rainforests is another place that appeals, said Banyan Tree Holdings executive chairman Ho Kwon Ping on Wednesday.
"We are always looking," Mr Ho said at a hotel management agreement signing ceremony between Banyan Tree Hotels & Resorts and property developer Harmoni Perkasa for the five-star Royale Pavilion Hotel. The Singapore company is also managing the 150-room Banyan Tree Signatures Pavilion Kuala Lumpur. Both hotels are located next to the Pavilion KL mall in the city centre and will offer nearly 500 rooms by the second quarter of 2017.
Noble Group: Noble Group Ltd's 2018 notes returned 37 per cent this month through March 29, leading gainers in junk bonds from South-east Asia, according to a Bank of America Merrill Lynch index.
Noble Group planned to meet bankers on March 31 in Hong Kong as it seeks to refinance at least US$1 billion of revolving credit facilities, people familiar with the matter said earlier this month.
HTL International: Singapore-based leather tanner and sofa maker HTL International has opened HomesToLife, its latest flagship store, at 65 Mohamed Sultan.
The new retail concept is marketed as a one-stop shop with access to its portfolio of over 20 international, dining and bedding brands catering to different styles and price points. It also offers sofa customisation with its collection of upholstery and different configuration options.
Retail and office Reits: While a challenging year lies ahead for Singapore retail and office real estate investment trusts (Reits) with rising supply and weak demand, both sectors' credit profiles are expected to be largely unaffected, said credit rating agency Fitch on Wednesday.
For the nine retail Reits, various factors such as low leverage levels, robust interest coverage, and manageable debt and lease contract maturities in the near term put them in good stead, said analyst Hasira de Silva in a report on Wednesday.
For office Reits, a slower economic environment and weak services sector have led to rents in the Singapore central region falling by 3 per cent in the third quarter last year, and 6 per cent in the fourth quarter.
Nevertheless, Mr de Silva foresees rental reversions for the sector to be "marginally positive" this year due to two mitigating factors. Like the retail Reits, only a fifth of the sector's leases mature this year. Secondly, these leases were, on average, contracted about six years ago, when rents were "considerably lower", he said.
Tiger Airways: Tiger Airways is selling two Airbus A320 aircraft to Stellar Aircraft Holding 1 at a loss to rightsize its fleet. As at March 31, 2015, the carrying value of the two planes had been written down to S$71 million. Upon completion of the sale, Tiger will record an S$8 million loss on disposal.
YuuZoo Corporation: Social networking firm YuuZoo Corporation said it has signed an agreement with the Alibaba Sports Group to organise and run an e-sports tournament and manage e-sports club competition centres. Under the agreement, YuuZoo's China joint venture YuuGames will receive a "multimillion US dollar fee".
Second Chance Properties: Second Chance's net profit for the second quarter tumbled 64 per cent to S$1.1 million on lower revenue and gains from the fair valuation of properties. Its revenue for the three months ended Feb 29, 2016, fell 16 per cent to S$8.4 million, as its apparel business in Malaysia was affected by the closure of eight shops, a weaker ringgit and intense competition.