Stocks to watch: Clar, Yangzijiang Shipbuilding, UOL, SingLand, Sasseur Reit, Sabana Reit

THE following companies saw new developments that may affect trading of their securities on Monday (Oct 14):

CapitaLand Ascendas Reit (Clar) : It is divesting an industrial property for S$112.8 million at a S$45.3 million premium or nearly double of the property’s original purchase price of S$58.4 million. On Oct 11, the Reit’s manager said the proceeds would be used for various purposes including paying down debt, and that its aggregate leverage would be reduced from 37.9 per cent to about 37.4 per cent if net proceeds are used repay Clar’s borrowings as at Dec 31, 2023. The divestment is expected to be completed within the fourth quarter of this year and is not expected to have a material impact on Clar’s net asset value and distribution per unit for the financial year ending Dec 31, 2024. Units of Clar closed at S$2.79 on Friday, down 0.4 per cent or S$0.01, before the announcement. 

Yangzijiang Shipbuilding : The China-based shipbuilder announced that customers had filed arbitration proceedings against three of its units over the orders of 10 vessels worth US$900 million for alleged breach of contract. The first tranche of hearings is scheduled for Nov 14, and the unidentified customers are claiming US$835 million as compensation. The claims are not expected to have a material adverse impact on the group’s financial position for the financial year ending December 2024, Yangzijiang said. The counter closed S$0.02 or 0.8 per cent higher at S$2.50 last Friday, before this announcement.

UOL Group , Singapore Land Group (SingLand) : SingLand and UOL are undertaking an 80/20 joint venture to acquire a 50 per cent interest in a A$460 million (S$404.7 million) commercial building in Sydney’s central business district. The acquisition will be financed by internal resources and external borrowings and is expected to be complete in the first half of 2025, said the two property developers on Friday. They added that it will diversify and strengthen their income streams while expanding their Australia presence. Shares of SingLand closed at S$1.75 on Friday, down 0.6 per cent or S$0.01, before the news. UOL closed at S$5.40, down 0.7 per cent or S$0.04

Sasseur Reit : Its manager reported on Monday a record RMB 276.1 million (S$51 million) Golden Week sales across its four outlets in China amid a surge in domestic consumption. This marks a significant increase in portfolio outlet sales of nearly 28 per cent year-on-year (yoy) and a rise of nearly 55 per cent compared to pre-pandemic levels in 2019. Sasseur Reit’s outlet sales outperformed the national overall retail sales revenue which rose 9 per cent yoy. The counter fell 0.7 per cent or S$0.005 to S$0.705 on Friday.

Sabana Industrial Reit : Its unitholders questioned the choice of the three director candidates put up by the trustee for the Reit when it becomes internally managed without a sponsor. The Reit will convene a requisitioned extraordinary general meeting on Oct 18 to vote on the proposed internal-manager directors recommended by the requisitionists and the trustee. Sabana Reit units closed at S$0.375 unchanged on Friday.