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Stocks to watch: Keppel Reit, Keppel Corp, Soilbuild Reit, Cache Logistics Trust, PEC
THE following companies saw new developments that may affect trading of their shares on Thursday:
Keppel Reit: Keppel Reit on Wednesday announced that its first-quarter distribution per unit (DPU) fell 2.1 per cent year-on-year to 1.39 Singapore cents. The DPU is payable on May 30. Property income edged up 0.7 per cent year on year to S$40.02 million, while net property income inched up 0.3 per cent to S$31.31 million. Distribution to unitholders was down 1.9 per cent to S$47.32 million on the back of the impact of occupancy changes, a weaker Aussie dollar, and lower income contribution from Ocean Financial Centre following the divestment of a 20 per cent stake in December 2018. At the end of the quarter, Keppel Reit's portfolio committed occupancy stood at 98.7 per cent. Units in the Reit closed down two cents at S$1.24 on Wednesday before the announcement.
Keppel Corporation: Keppel Corp unit Keppel Offshore & Marine (Keppel O&M) has, through its subsidiaries, secured integration and upgrading contracts worth about S$160 million in total, Keppel announced on Wednesday night. The contracts are from repeat customers. One is between Keppel Shipyard, and a leading operator of oil and gas production vessels, for fabrication and integration work on a floating production storage and offloading vessel. Work is expected to start in Q3 2019, with delivery scheduled for 2021. The second contract is between Keppel FELS and Diamond Offshore for the upgrade of the drilling semisubmersible rig Ocean Onyx. Keppel Corp closed up 15 Singapore cents or 2.27 per cent at S$6.76 on Wednesday before the announcement.
Soilbuild Business Space Reit: Soilbuild Reit on Wednesday declared a DPU of 1.198 Singapore cents for the first quarter ended March 31, down 9.5 per cent from 1.324 cents a year ago, as expense increases outpaced revenue growth. The Reit saw higher gross revenue for the quarter of S$22.68 million, up 16.6 per cent year-on-year from S$19.45 million. This was mainly due to the conversion of Solaris into a multi-tenanted property on Aug 15, and contributions from two Australian properties. Net property income also improved 7.7 per cent to S$18.29 million. Income attributable to unitholders fell 8.7 per cent to S$12.74 million in Q1 2018. Soilbuild Reit closed up 0.5 Singapore cent, or 0.79 per cent to S$0.635 on Wednesday, before the results were released.
Cache Logistics Trust (Cache): Out of some S$8.2 million that Cache received in an earlier dispute resolution, about S$7.4 million qualifies for tax transparency with the rest being subject to tax, the Reit manager announced on Wednesday night. The income qualifying for tax transparency, which Cache referred to as the rental shortfall amount, is attributable to the rental period from Sept 1, 2016, to Aug 31, 2021. About S$2.9 million of the amount, attributable to the rental period from Sept 1, 2016, to March 31, 2019, and net of relevant expenses, will be distributed to unitholders together with the Q2 2019 distributions, Cache said. Units in the trust closed flat at S$0.72 on Wednesday.
PEC: Mainboard-listed PEC has secured S$103 million in new contracts with existing clients, it announced on Wednesday after market close. Two of these are for engineering, procurement and construction of two storage facilities in Singapore and Malaysia, with both expected to be completed within 20 months. A third contract is for the provision of mechanical and civil works for an upgrading project in East Malaysia. PEC said that barring unforeseen circumstances, the latest contracts are expected to contribute positively to its earnings for the financial year ending June 30, 2019. The counter closed down one Singapore cent or 1.61 per cent at 61 Singapore cents on Wednesday before the announcement.