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Stocks to watch: CCT, Keppel Reit, Wilmar, Qian Hu
CAPITALAND Commercial Trust (CCT): The commercial real estate investment trust on Wednesday reported a distribution per unit (DPU) of 2.20 Singapore cents for the second quarter of FY2016, up slightly from 2.19 cents a year ago.
Distribution to unitholders clocked S$65.09 million, or one per cent higher year on year, despite lower net property income. This was due to more distributions received from CCT's 40 and 60 per cent interests in CapitaGreen and Raffles City Singapore respectively.
Revenue slid 2.2 per cent to S$67.57 million due to lower occupancies in some buildings, while net property income was down 4.5 per cent to S$51.45 million as a result of higher operating expenses attributed to leasing commissions and property tax.
For H1 2016, distributable income was 2.2 per cent higher at S$129.93 million. This was despite gross revenue sliding 2.1 per cent to S$134.43 million and net property income falling 4 per cent to S$103.48 million.
Keppel Reit: The absence of income contribution led the real estate investment trust to post a drop in its distribution per unit to 1.61 Singapore cents for the second quarter ended June 30, 2016. In the corresponding quarter a year ago, it had paid out 1.72 Singapore cents. This was due to the sale of a Sydney commercial building, 77 King Street, in the first quarter.
Net property income fell 6.5 per cent to S$32.5 million, on the back of a 5.6 per cent drop in property income (comprising rents as well as carpark and other income) to S$40.6 million.
"Excluding contribution from 77 King Street, property income and net property income remained stable in Q2 2016," the Reit said.
Wilmar International: The agribusiness group said on Tuesday it expects to report a net loss of US$230 million for its fiscal second quarter ended June 30, 2016, due to "challenging operating conditions".
It also said it still expects to remain profitable for the first half of the year, though that profit could be significantly lower than the year before.
It will release its second-quarter results on Aug 11.
Qian Hu Corporation: The ornamental fish retailer's net profit for the second quarter ended June 30, 2016, rose 25 per cent year on year to S$15,000.
This was helped by a tax credit of S$49,000, against a tax expense of S$44,000 previously. This relates to recognition of tax effect of previously unrecognised tax losses.
At the operating level, profit dropped 21.3 per cent to S$111,000.
Although revenue dipped 4.6 per cent to S$19.1 million on the back of lower sales across the group's business segments, margins were higher, resulting in gross profit rising 1.3 per cent to S$5.83 million.