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Stocks to watch: SIA, EHT, StarHub, FLT, Perennial, Mirach, Prime US Reit, AA Reit
THE following companies saw new developments that may affect trading of their shares on Wednesday:
Singapore Airlines (SIA): SIA on Tuesday posted a 68 per cent jump in net profit for the second quarter to S$94 million from S$56 million a year ago, owing to improvement in share of results from associates and joint ventures which was partially offset by higher net finance charges. Operating profit, however, slipped 8.6 per cent to S$213 million with higher expenditure due to capacity injection being the chief culprit, having outstripped revenue growth of nearly 4 per cent to S$4.2 billion from S$4.1 billion. SIA shares fell four Singapore cents or 0.4 per cent to finish at S$9.43 on Tuesday.
Eagle Hospitality Trust (EHT): The stapled hospitality group on Wednesday morning clarified that the original purchase prices for three assets in the ASAP6 portfolio it acquired from its sponsor have not been disclosed and are not known to the Reit manager. EHT was responding to recent media reports - one by The Edge regarding the valuation of the assets and another by The Business Times on its sponsor Urban Commons' links to EHT's biggest investor. Its stapled securities lost 7.4 per cent or 3.5 US cents to US$0.44 at Tuesday's close. On Wednesday at 9.16am, they had moved up 4.5 per cent or two US cents to US$0.46.
StarHub: The mainboard-listed telco is weighing a joint 5G bid with another mobile network operator, chief executive Peter Kaliaropoulos told an earnings call on Tuesday. This is on top of an ongoing push into the enterprise market, which has been identified as a growth area. StarHub cut its forecast for full-year service revenue, which it now expects to decrease by between 2 per cent and 3 per cent - down from an earlier guidance of zero to 2 per cent - on a sharper drop in the year to date. It posted third-quarter net profit of S$58 million, up by 1.7 per cent, as minority interests absorbed the slip from a higher share of loss of associate and tax expenses. StarHub closed up S$0.02 or 1.54 per cent to S$1.32 on Tuesday before the results were released.
Frasers Logistics and Industrial Trust (FLT): FLT's Q4 distribution per unit (DPU) rose 2.2 per cent to 1.82 Australian cents, from 1.78 Australian cents a year ago. However, in Singapore-dollar terms, DPU fell by 2.8 per cent to 1.73 Singapore cents, from 1.78 Singapore cents a year ago. FLT said on Wednesday morning that revenue was up 1.9 per cent to A$61.6 million (S$57.7 million) for the quarter, while adjusted net property income grew 1.9 per cent on the year to A$50.2 million. Units of FLT were flat at S$1.25 at Tuesday’s close.
Perennial Real Estate Holdings: Higher finance costs and the absence of a one-off gain dampened results for the real estate developer for its third quarter ended Sept 30. It fell into the red, posting a net loss of S$9.9 million, from net profit of S$48.3 million in the preceding year. It closed flat at S$0.55 on Tuesday.
Mirach Energy: The Singapore Exchange Regulation has once more urged investors and potential investors to exercise caution when dealing in the shares of Mirach Energy, flagging that a small group of individuals was responsible for nearly 90 per cent of the buy volume of the stock over about a month's period. The counter closed at 25 Singapore cents on Tuesday, down 3.85 per cent or one cent.
KBS Prime US Reit: Prime US Reit on Tuesday posted a distribution per unit (DPU) of 1.38 US cents for its third quarter, higher than its forecast of 1.31 US cents for the period, on the back of stronger rental income. This came as Q3 income available for distribution reached US$12.8 million, 5.4 per cent higher than the forecast for the quarter. Its units closed up US$0.005 or 0.5 per cent to US$0.945 on Tuesday.
AIMS Apac Reit (AA Reit): The real estate investment trust (Reit) on Tuesday evening said it will issue S$100 million of 3.6 per cent notes due November 2024, as part of its S$750 million multicurrency debt issuance programme. Units in AA Reit closed at S$1.40 on Tuesday, up 1.5 per cent or two Singapore cents.
ARA US Hospitality Trust: The Reit announced on Wednesday morning that it will acquire three Marriott-branded upscale select-service hotels in the US for US$84.5 million. ARA separately reported distributable income of US$17.8 million for the period from May 9 (its listing date) to Sept 30. The Reit's manager expects the distribution income for its forecast period, from May 9 to Dec 31, to be in line with its initial public offering forecast. ARA units closed up US$0.01 or 1.2 per cent to US$0.865 on Tuesday.
KLW Holdings: The door-maker warned on Tuesday that it expects to post a net loss for the second quarter ended Sept 30, its second warning in as many quarters. "Based on the preliminary review of its draft financial results for Q2 FY2020, the losses are mainly due to decline in revenue from the door business," KLW said in its filing, echoing its warning last quarter. Its shares closed flat at S$0.002 on Tuesday.