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Stocks to watch: Keppel, Ascott Reit, A-HTrust, Far East H-Trust, FHT, CDLHT, SGReit
THE following companies saw new developments that may affect trading of their securities on Wednesday:
Keppel Corp: Norway competition authorities have rejected the application for the merger between Keppel Corp’s associate company Floatel International and Prosafe to create the world's largest offshore accommodation company. FELS Offshore, a unit of Keppel's offshore and marine arm, owns a 49.92 per cent stake in Floatel. In an exchange filing on Wednesday, Keppel said Floatel and Prosafe are assessing whether to appeal the decision. Keppel shares closed at S$6.86 on Tuesday, down five Singapore cents or 0.7 per cent.
Ascott Resident Trust (Ascott Reit): The hospitality trust on Wednesday morning posted a 5 per cent increase in distribution per unit (DPU) to 1.91 Singapore cents for the third quarter, from 1.82 cents a year ago. Excluding the divestment of Ascott Raffles Place Singapore, DPU for Q3 would have been 1.73 cents compared with 1.72 cents a year ago. Ascott Reit units closed up S$0.02 or 1.4 per cent to S$1.42 on Tuesday.
Ascendas Hospitality Trust (A-HTrust): It posted a decline in its second-quarter distribution per stapled security (DPS) to 1.38 Singapore cents, from 1.46 cents a year ago, amid an absence of divestment. Net property income rose 3.5 per cent to S$21.17 million, A-HTrust said on Tuesday evening. A-HTrust stapled securities ended flat at S$1.17 on Tuesday, before the results were announced.
The proposed combination of A-HTrust and Ascott Reit was approved by holders last week. Subject to the court’s sanction, the last day of trading of the stapled securities of A-HTrust is expected to be Dec 16, followed by its expected delisting on Jan 3, 2020.
Far East Hospitality Trust (Far East H-Trust): The hospitality stapled group on Wednesday posted a 1 per cent drop in its third-quarter DPS to 1.04 Singapore cents, due to an enlarged base that was largely a result of the implementation of the distribution reinvestment plan in the last three quarters. Gross revenue was up 1.2 per cent to S$30.9 million; the higher revenue contribution came from all three components of the portfolio. Stapled securities of Far East H-Trust closed one Singapore cent or 1.4 per cent lower at S$0.70 on Tuesday.
Frasers Hospitality Trust (FHT): The international hotel investor’s DPS fell 4.1 per cent to 1.1655 Singapore cents for the fourth quarter ended Sept 30 from 1.2154 cents, weighed down by its Australia portfolio, it said on Wednesday morning. Gross revenue was up 2.1 per cent to S$39.5 million for the quarter, from S$38.7 million a year ago. FHT’s stapled securities closed at 0.725 Singapore cents on Tuesday, down 0.5 cent or 0.7 per cent.
CDL Hospitality Trusts (CDLHT): Its third-quarter DPS was down 4.1 per cent to 2.09 Singapore cents, from 2.18 Singapore cents a year ago, amid lower net property income and higher interest expense for the quarter, CDLHT said on Wednesday morning. Revenue also slipped 1.8 per cent to S$49.1 million. Stapled securities of CDLHT closed flat at S$1.64 on Tuesday.
Starhill Global Real Estate Investment Trust (SGReit): It posted a 1.7 per cent decline in first-quarter DPU to 1.13 Singapore cents, down from 1.15 cents in the year-ago period. Revenue fell 7.8 per cent to S$48 million, while net property income of S$36.9 million was 8.7 per cent lower, as a result of the planned asset enhancement of Starhill Gallery in Malaysia. The counter ended one Singapore cent or 1.35 per cent higher at S$0.75 on Tuesday, before the results were released.
Olive Tree Estates: The Catalist-listed property firm on Tuesday said that the recent flurry of key executive departures came as the company shifts its business focus and strategy to emerging markets and affordable housing. The bourse operator had asked Olive Tree Estates for its sponsor and board's assessment on the resignations of its key management members. OTE shares ended flat at 6.2 Singapore cents on Tuesday, before the announcement.
Manulife US Real Estate Investment Trust (Manulife US Reit): The pure-play US office Reit on Wednesday morning announced that it has completed its US$198.8 million purchase of 400 Capitol Mall, a Class A office building in Sacramento, California. From the equity fund raising, US$136 million or 95.3 per cent of gross proceeds were used to partially fund the acquisition. Manulife US Reit units ended flat at 91.5 US cents on Tuesday.
Eagle Hospitality Trust (EHT): The hospitality stapled group’s counter staged a small comeback on Tuesday, gapping up at the open as buyers bought the assurance that concerns over the Queen Mary floating hotel were overblown. Sellers, however, eventually erased most of the early gains. EHT stapled securities finished up two US cents, or 3.7 per cent higher at 56.5 US cents on Tuesday, not far from its all-time-low of 54 US cents last Friday. Separately, regulatory filings released on Tuesday night showed that EHT's largest investor had offloaded some of his stake last Friday.