Singapore

• In Smartkarma Corporate Webinar | Elite Commercial REIT: Essential Assets at an Attractive Yield we conducted a fireside chat with Elite Commercial REIT.
• Elite Commercial REIT is a Singapore real estate investment trust established with the investment strategy of principally investing, directly or indirectly, in commercial real-estate related assets in the United Kingdom.
• The company has recently expanded its strategy to look at other commercial assets in the UK, beyond its existing portfolio of assets rented by the UK government.

This Insight is part of the Smartkarma Corporate Webinar series, supported by SGX through the Investor Education Fund.

• Jardine Cycle & Carriage (JCNC SP)‘s current implied stub value is around its highest-ever level.
• The simple ratio of JCNC/Astra International (ASII IJ) is at its highest level outside the 2008 GFC.
• A weak Indonesian rupiah is likely a factor. Still, JCNC is trading rich to its NAV. A takeover from parent Jardine Matheson Holdings (JM SP) is idealistic.

• CapitaLand is a real estate investment manager with funds under management of c.S$100b and core markets being Singapore, China and India
• They reported solid FY2023 results earlier this year.  Singapore and India are showing strong market outlook while China struggles.
• Valuation is attractive with >50% upside and we view there are multiple catalysts ahead

• Plato Capital chairman Lim Kian Onn boosts his stake Digital Core Reit Management bought back 210,000 units of Digital Core Reit.
• On Apr 12, Plato Capital chairman and non-executive non-independent director Lim Kian Onn acquired 283,000 shares at an average price of S$2.21 per share.

• Since the end of 1Q24, Jardine C&C has gained 10%.
• Jardine C&C also maintains a Refinitiv Consensus Estimates Target Price of S$27.08, an ROE of 16% and P/E of 6x.
• Like Jardine C&C, the past three weeks has seen Silverlake Axis partially reverse share price declines in 1Q24.

• Keppel Pacific Oak US REIT 17-Apr CapitaLand Integrated Commercial Trust 19-Apr 19-Apr Keppel Pacific Oak US REIT reported a 0.8 per cent year-on-year decline in net property income (NPI) in the first quarter ended Mar 31, 2024 to US$21 million, from US$21.2 million in Q1 2023.

• kopi-C with SingPost’s CFO: “We’re building a Singapore-branded global logistics company” Its Group Chief Financial Officer Vincent Yik explains its strategy.
• With the decline in demand for postal services over the years, Singapore Post (SingPost), the country’s postal service provider, is pivoting to the logistics sector to survive and thrive, shares its Group Chief Financial Officer Vincent Yik.

• kopi-C with SingPost’s CFO: “We’re building a Singapore-branded global logistics company” Its Group Chief Financial Officer Vincent Yik explains its strategy.
• With the decline in demand for postal services over the years, Singapore Post (SingPost), the country’s postal service provider, is pivoting to the logistics sector to survive and thrive, shares its Group Chief Financial Officer Vincent Yik.

• Sea Limited is a gaming and e-commerce company in Southeast Asia that has experienced fluctuations in its stock price but has strong underlying business performance.
• Founded in 2009 as Garena by CEO Forrest Li, the company rebranded to Sea Ltd in 2017 and gained access to a wide range of games through Tencent’s investment in 2010.
• After achieving profitability in 2023, Sea Ltd is now focused on accelerating growth and drawing comparisons to Amazon’s early years.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We look at Asia, and see where there are interesting trade idea.  While HK/CH see investors’ capitulation, there are some interesting ideas in Singapore
• We focus on real estate and look at S-REITs, which just wrap up their 4Q 23 results.  We see divergence in terms of industry fundamentals
• Within S-REITs, we like industrial and retail given stronger industry fundamentals and stable asset valuation

• Sam Goi continues to boost his stakes in PSC and GSH INSTITUTIONS were net sellers of Singapore stocks over the four trading sessions from Apr 5 to 11, with S$44 million of net institutional outflow, as 21 primary-listed companies conducted buybacks with a total consideration of S$25 million.
• He acquired 144,700 shares of the company at S$0.352 per share, taking his total interest from 30.74 per cent to 30.77 per cent.
• Goi also bought more shares of GSH Corporation, where he also serves as executive chairman.

For our next Corporate Webinar we are glad to welcome Elite Commercial REIT’s CEO, Mr Joshua Liaw.

In the upcoming webinar, Joshua will share a short company presentation after which, he will engage in a fireside chat with Smartkarma Insight Provider, Sumeet Singh. 

Sumeet will also be providing an industry overview, featuring landscape commentary and returns analysis. The Corporate Webinar will include a live Q&A session.

In the spirit of giving back to our community, one of the attendees will also be awarded an Amazon Kindle as part of our exclusive lucky draw. 

The Corporate Webinar will be hosted on Monday, 15 April 2024, 19:00 SGT.

About Elite Commercial REIT

Elite Commercial REIT (“Elite REIT”) is a Singapore real estate investment trust established with the investment strategy of principally investing, directly or indirectly, in commercial real-estate related assets in the United Kingdom (“UK”). Elite REIT is the only UK REIT listed in Pound sterling on the Singapore Exchange.

Elite REIT’s portfolio (“Portfolio”) comprises predominantly freehold properties strategically located mainly in town centres, and near amenities and transportation nodes. The Portfolio offers a stable government-backed income stream with over 99% of the gross rental income derived from the UK Government, backed by AA-rated sovereign credit strength. The leases are on triple net basis and Elite REIT is one of the largest providers of critical social infrastructure to the Department for Work and Pensions (“DWP”) and other UK Government departments. The DWP is the UK’s largest public service department that is responsible for welfare, pensions and child maintenance policy, serving over 20 million claimants and customers. The Portfolio is part of the crucial social infrastructure through which the DWP provides services to local communities.

• In 1Q24, 50 SGX primary-listed companies bought back shares by way of market acquisitions with a combined consideration of ~S$230 million.
• CapitaLand Investment bought back 31.2 million shares at an average price of S$2.96 in 1Q24 and City Developments bought back 6.7 million shares at an average price of S$5.91 per share.
• The 1Q24 buyback activity compared to 41 primary-listed companies conducting S$111 million in buyback consideration in 1Q23.

• Singtel, NetLink NBN Trust and StarHub represent the most traded stocks of Singapore’s Telecommunication Sector, and have averaged 2.6% YTD total returns, after averaging 7.0% total returns in 2023.
• StarHub has led the trio over the past 14 weeks, and last week returned to Sep 2022 levels.
• Singapore’s most traded stocks of the Telecommunications Sector, Singtel, NetLink NBN Trust and StarHub, have averaged 2.6% total returns in the 2024 year to 5 April, on S$46 million of combined net institutional inflow.

• Huationg Global CEO increases interest to 7.75% Olam Group bought back a total of three million shares at S$1.13 apiece over the four sessions.
• Ng also maintained a 68.7 per cent deemed interest in Huationg Global by virtue of his 25 per cent shareholding interest in Dandelion Capital, which is the immediate and ultimate holding company of Huationg.

• REIT Watch – S-Reit sector’s PB ratio is at almost 20% discount to its longer-term average Despite this, the S-REIT sector is now trading at a discount of close to 20 per cent compared to its longer-term average in terms of price-to-book ratio.
• This is indicated by the iEdge S-REIT Index currently trading at a price-to-book (PB) ratio of 0.87 times, against the index’s five-year average PB ratio of 1.04 times – which showed a discount of 16 per cent.