Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>Macro Relief: The sharp decline in Singapore’s 3M SORA lowers financing costs and supports asset valuation through expected cap rate compression across the group's diverse property portfolio.</li>
<li>Execution Premium: UOL has demonstrated best-in-class performance in the recovering residential segment, highlighted by rapid sales take-up in high-margin, prime-location projects, providing robust earnings visibility.</li>
<li>Financial Fortress: UOL operates with a conservative net gearing ratio that is unparalleled among major listed peers, providing the strategic capacity required for opportunistic land banking.</li>
</ul>


Macro Relief: The sharp decline in Singapore’s 3M SORA lowers financing costs and supports asset valuation through expected cap rate compression across the group's diverse property portfolio.
Execution Premium: UOL has demonstrated best-in-class performance in the recovering residential segment, highlighted by rapid sales take-up in high-margin, prime-location projects, providing robust earnings visibility.
Financial Fortress: UOL operates with a conservative net gearing ratio that is unparalleled among major listed peers, providing the strategic capacity required for opportunistic land banking.


LONG UOL – The Rerating Imperative in Singapore Real Estate

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>Institutions were net sellers of Singapore stocks with a S$96 million outflow, led by REITs and Financial Services.</li><li>Nine companies conducted share buybacks totaling S$16.4 million, with United Overseas Bank buying back 240,000 shares.</li><li>Director transactions included 40 filings, with seven acquisitions by directors or CEOs and eight by substantial shareholders.</li></ul>

Institutions were net sellers of Singapore stocks with a S$96 million outflow, led by REITs and Financial Services.Nine companies conducted share buybacks totaling S$16.4 million, with United Overseas Bank buying back 240,000 shares.Director transactions included 40 filings, with seven acquisitions by directors or CEOs and eight by substantial shareholders.

<ul><li>SIA Engineering, UOL, Sheng Siong, Raffles Medical, and DFI Retail Group led FTSE ST Mid Cap Index in 1H25.  </li><li>Sheng Siong maintains the highest ROE at 26.7% among FTSE ST Mid Cap Index constituents as of June 25, 2025.  </li><li>ParkwayLife REIT achieved a 10.5% total return in 2025, driven by new acquisitions and step-up leases.</li></ul>

SIA Engineering, UOL, Sheng Siong, Raffles Medical, and DFI Retail Group led FTSE ST Mid Cap Index in 1H25.  Sheng Siong maintains the highest ROE at 26.7% among FTSE ST Mid Cap Index constituents as of June 25, 2025.  ParkwayLife REIT achieved a 10.5% total return in 2025, driven by new acquisitions and step-up leases.

Five Stocks that Led the FTSE ST Mid Cap Index in 1H25

Thematic (Sector/Industry)

<ul>
<li>We think Singapore REITs are positioned for a re-rating on the back of multiple catalysts: interest rate decline, accelerated M&amp;A and recovery in physical real estate market</li>
<li>3M SORA has declined sharply from 3.034% in January to 1.32% in November.  The steep decline in rates will boost earnings and result in more favorable REIT valuations</li>
<li>The physical market in Singapore is also recovering, especially in the office and residential market.  We think CICT, FCT, and UOL are well positioned to benefit from this cycle</li>
</ul>


We think Singapore REITs are positioned for a re-rating on the back of multiple catalysts: interest rate decline, accelerated M&amp;A and recovery in physical real estate market
3M SORA has declined sharply from 3.034% in January to 1.32% in November.  The steep decline in rates will boost earnings and result in more favorable REIT valuations
The physical market in Singapore is also recovering, especially in the office and residential market.  We think CICT, FCT, and UOL are well positioned to benefit from this cycle


LONG Singapore REITs: Capturing the Yield Compression Cycle and Asset Recycling Renaissance

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/haw-par-corp-ltd" target="_blank" data-smartkarma-citation="entities:9898:1" rel="noopener">Haw Par Corp (HPAR SP)</a></strong>'s discount to NAV has narrowed to a multi-year low; and the implied stub and simple ratio (HPAR/UOB) are similarly elevated. Shares are, however, pretty illiquid. </li>
<li>Preceding my comments on Haw Par - and <strong><a href="https://www.smartkarma.com/entities/singapore-land-group-ltd" target="_blank" data-smartkarma-citation="entities:12891:1" rel="noopener">Singapore Land Group (SPLG SP)</a></strong> - are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



Haw Par Corp (HPAR SP)'s discount to NAV has narrowed to a multi-year low; and the implied stub and simple ratio (HPAR/UOB) are similarly elevated. Shares are, however, pretty illiquid. 
Preceding my comments on Haw Par - and Singapore Land Group (SPLG SP) - are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


Singapore

UOL Group Limited is a property company. The Company has a diversified portfolio of development and investment properties, hotels, and serviced suites. UOL Group, through its subsidiary owns a portfolio of commercial assets and hotels. UOL Group operates in Asia, Oceania, and North America.

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UOL Group (UOL SP)

LONG UOL – The Rerating Imperative in Singapore Real Estate

We think Singapore real estate is beginning a new bull cycle, on the back of steep decline in 3M SORA. We like UOL due to its exposure in...

Jacob Cheng

Q&M, UOL & CLCT Directors Build Stakes

Institutions were net sellers of Singapore stocks with a S$96 million outflow, led by REITs and Financial Services. Nine companies conducted share...

Singapore Exchange Ltd (SGX)

Five Stocks that Led the FTSE ST Mid Cap Index in 1H25

SIA Engineering, UOL, Sheng Siong, Raffles Medical, and DFI Retail Group led FTSE ST Mid Cap Index in 1H25. Sheng Siong maintains the highest...

Singapore Exchange Ltd (SGX)

LONG Singapore REITs: Capturing the Yield Compression Cycle and Asset Recycling Renaissance

We think Singapore REITs are well positioned for a re-rating, on the back of steep interest rate decline, accelerated M&As and recovery in the...

Jacob Cheng

StubWorld: Haw Par Looking Stretched

The special divi has passed; yet Haw Par's NAV disc. to NAV is now around the narrowest inside a year. At 0.4x P/B, I prefer Singapore Land;...

David Blennerhassett

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