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Stocks to watch: Suntec Reit, PLife Reit, Oceanus, Ascott Reit
THE following companies had announcements that could affect the trading of their shares on Wednesday:
Suntec Real Estate Investment Trust announced a distribution per unit (DPU) of 2.596 Singapore cents for the fourth quarter ended Dec 31, 2016, a 5.6 per cent dip from the DPU of 2.750 cents seen a year ago.
Its distributable and net property incomes also fell. Distributable income stood at S$66.1 million, 4.9 per cent lower than a year ago, and net property income generated was S$60.7 million, 2.9 per cent lower on year due to the divestment of Park Mall and lower income from Suntec City and Suntec Singapore.
Parkway Life Real Estate Investment Trust (PLife Reit) announced that its DPU grew 2.3 per cent to 3.06 Singapore cents for Q4 2016 and 2.8 per cent to 12.12 Singapore cents for FY2016. Its gross revenue was 5.4 per cent higher at S$27.7 million for Q4 2016 from S$26.3 million in the same period a year ago, and up 7.2 per cent to S$110.1 million for FY2016 from S$102.7 million in FY2015.
Oceanus Group, in a bit to restructure debts, has converted 76.4 per cent of its total outstanding debt to equity, substantially improving its balance sheet.
Its key creditors have also agreed to transfer about S$31.87 million of the outstanding debt to a consortium consisting of new value investors and Oceanus management (new investors). The new investors will also inject funds of up to S$6 million to help with the general corporate purposes and the ongoing working capital needs of Oceanus.
Despite a dip of 7 per cent drop in its distribution per unit (DPU) to 1.93 Singapore cents for the fourth quarter ended Dec 31, 2016, both UOB Kay Hian and DBS Vickers are keeping their "buy" calls for hospitality Reit Ascott Residence Trust. This is because its balance sheet remains strong with revenue, profit and distributable income all up. In its report, UOB Kay Hian's "buy" recommendation has a target price of S$1.30 per share. At the close of the market on Tuesday, Ascott Reit was 1.28 per cent higher at S$1.185.