In today’s briefing:
- Paragon REIT (PGNREIT SP)’s Privatisation Offer
- S-Reits, industrials lead institutional outflow
- REIT Watch – Occupancy remains high for S-Reits’ Singapore retail assets
Paragon REIT (PGNREIT SP)’s Privatisation Offer
- Cuscaden Peak, the sponsor of Paragon REIT (PGNREIT SP) and 61.5% shareholder, has offered S$0.98/unit, in cash; or S$1.003/unit, a 7% premium to NAV, when including FY24’s S$0.0233/unit cash distribution.
- The Offer is by way of a Scheme. The Offer price has NOT been declared final. A switch option into a voluntary Offer is afforded should a competing Offer emerge.
- Looks pretty clean. Assuming mid-late May payment, pay up to S$0.97/share for a 4%/15% gross/annualised spread. It may trade tighter given the early distribution payment.
S-Reits, industrials lead institutional outflow
- Institutions were net sellers of Singapore stocks, with a net outflow of S$169 million from Jan 31 to Feb 6.
- CapitaLand Ascott Trust’s FY24 core distribution per stapled security increased 1% to 5.49 cents, driven by portfolio reconstitution.
- CapitaLand India Trust’s FY24 distribution per unit rose 6% to 6.84 Singapore cents, supported by acquisitions and rent reversion.
REIT Watch – Occupancy remains high for S-Reits’ Singapore retail assets
- S-Reits with retail assets in Singapore reported strong committed occupancy and positive rental reversions, driven by tourism recovery.
- Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, and Mapletree Pan Asia Commercial Trust reported occupancy above 99% and rental growth.
- CBRE and DBS Group Research anticipate continued strong leasing sentiment and retail rent growth in Singapore through 2025.
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