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Stocks to watch: CCT, CMT, Frasers Property, ESR-Reit, Cache Logistics
THE following companies saw new developments that may affect trading of their securities on Thursday:
CapitaLand Commercial Trust (CCT), CapitaLand Mall Trust (CMT): The two real estate investment trusts (Reits) on Wednesday proposed a deal that if successful will propel the emergent entity to be Singapore's biggest Reit and the Asia-Pacific’s third largest. But the scheme unveiled on Wednesday is probably more compelling for CMT, and likely for that reason, the deal terms also leaned in favour of its office counterpart CCT.
Both Reits requested trading halts on Wednesday morning before announcing the merger. The trading halts were lifted after market close. CCT units closed two Singapore cents or 0.9 per cent lower at S$2.13 on Tuesday, while CMT units was down two Singapore cents or 0.8 per cent to S$2.59.
Frasers Property: A subsidiary of Frasers Property will acquire the entire stake in Bedfont Lakes, which holds the freehold interest in a business park comprising three office buildings in London. The aggregate consideration to be paid for the acquisition is about £135 million (S$238 million), Frasers Property said on Thursday morning. Its shares gained S$0.01 or 0.6 per cent to S$1.73 at Wednesday’s close.
ESR-Reit: It posted a 0.5 per cent drop in its fourth-quarter distribution per unit (DPU) to S$0.01 on Thursday morning. However, ESR-Reit recorded higher gross revenue and net property income mainly due to contributions from Viva Trust's nine properties and 15 Greenwich Drive; the leasing of its 30 Marsiling property; and higher rental price for existing properties. Its units closed unchanged at S$0.55 on Wednesday.
Cache Logistics Trust: The Reit on Thursday posted an 8.4 per cent fall in DPU to 1.376 Singapore cents for its fourth quarter ended Dec 31, down from 1.502 cents a year ago. Cache Logistics Trust units closed flat at S$0.735 on Wednesday.
Keppel Reit: Its DPU for the fourth quarter ended Dec 31 rose 2.9 per cent to 1.4 Singapore cents, while net property income increased 9.3 per cent. This came on the back of higher income from Ocean Financial Centre, 275 George Street, 8 Exhibition Street, and income contribution from Grade A office building T Tower in Seoul. The counter closed one Singapore cent higher at S$1.27 on Wednesday, before the results were out.
Mapletree Commercial Trust (MCT): Its third-quarter DPU rose 5.6 per cent to 2.46 Singapore cents, on the back of higher gross revenue and net property income. Distributable income climbed 18 per cent to S$79 million for the three months ended Dec 31. The counter closed flat at S$2.44 on Wednesday before the results were announced.
Frasers Centrepoint Trust (FCT): For its first quarter ended Dec 31, distributable income increased 26.5 per cent to S$35 million. This was mainly due to contributions from FCT's 24.8 per cent interest in PGIM Real Estate Asia Retail Fund and 40 per cent interest in Sapphire Star Trust, which owns Waterway Point in Punggol, FCT said on Wednesday after trading hours. Its units were flat at S$1.66 at Wednesday’s close.
Mapletree Logistics Trust (MLT): The Reit is proposing to acquire a logistics property in South Korea from DC Deokpyung for 35.8 billion won (S$41.4 million). The property is located in Yongin-Icheon, a prime logistics cluster in the south-east region of the Seoul Metropolitan Area, the largest logistics hub in South Korea. MLT units ended trading at S$1.81 on Wednesday, down S$0.01.
Soilbuild Business Space Reit (Soilbuild Reit): The trust on Wednesday evening posted a 36.3 per cent drop in its fourth-quarter DPU to 0.925 Singapore cent. Gross revenue decreased 11.5 per cent to S$22.8 million after contribution from 72 Loyang Way, 2 Pioneer Sector 1 and Solaris took a hit. Soilbuild Reit units closed flat at S$0.53 on Wednesday before the results were announced.
The Hour Glass: Its wholly-owned subsidiary has agreed to buy two freehold properties located in Auckland, New Zealand from two separate vendors for a purchase consideration of NZ$60 million (S$54 million). Shares of The Hour Glass ended trading at S$0.80 on Wednesday, down 0.5 cent, before the announcement.
3Cnergy: The firm is putting up three plots of freehold land totalling 1.86 million square feet at Puteri Harbour in Malaysia for sale. The public tender will be launched on Jan 23 by wholly-owned subsidiary 3C Marina Park through real estate agent Knight Frank Malaysia. Shares of 3Cnergy fell 0.4 Singapore cent or 33 per cent to 0.8 cent at Wednesday’s close, before the announcement.
Trading halts: On Thursday morning, Catalist-listed Mary Chia Holdings and Asiatic Group (Holdings) separately called for halts in the trading of their shares, pending the release of announcements.