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Stocks to watch: Sabana Reit, FCT, Frasers Property, CDL, Soilbuild Reit, Penguin, Kimly

Fri, Jan 22, 2021 – 9:01 AM

THE following companies saw new developments that may affect trading of their securities on Friday.

Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit): The Reit on Friday posted a 47.7 per cent rise in its distribution per unit (DPU) to 2.29 Singapore cents from 1.55 cents a year ago. Excluding the 0.58 cent withheld from H1 2020 distribution, DPU is 1.71 cents, up 10.3 per cent from the previous year. Units of Sabana Reit closed flat at 37.5 Singapore cents on Thursday.

Frasers Centrepoint Trust (FCT): Its performance for the final three months of 2020 remained resilient with retail portfolio occupancy stable at 96.4 per cent, the manager said in a bourse filing on Thursday. Going forward it expects dominant suburban malls to remain resilient, with FCT well-positioned to “ride the omnichannel retailing trend”. FCT units closed down by S$0.02 or 0.8 per cent at S$2.61.

Frasers Property: The group on Thursday announced that its subsidiary, Excellent Esteem, is looking to sell its stake in Beijing Fraser Suites Real Estate Management for 1.6 billion yuan (S$327.5 million). Separately, Frasers Property said it expects to be the first Singapore-listed real estate firm to set a net-zero carbon commitment, with an aim to reach this by 2050. Prior to the release of both announcements, shares of Frasers Property closed S$0.01 or 0.8 per cent higher at S$1.28.

City Developments Limited (CDL): Given the “ongoing unprecedented challenges” facing China’s real estate market, the property developer now expects to make provisions for a material impairment loss on its investment in Sincere Property. CDL said this in a profit guidance for the full year ended Dec 31, 2020, based on review by its appointed external financial adviser Deloitte after a spate of high-level resignations in recent weeks. The counter ended Thursday up S$0.04 or 0.5 per cent at S$7.68, before the announcement.

Soilbuild Business Space Reit (Soilbuild Reit): The Reit posted a fourth-quarter distribution per unit (DPU) of 1.194 Singapore cents, up 29.1 per cent from 0.925 cent a year ago. In its results announcement on Thursday, its manager’s chief executive, Roy Teo, said this is “not indicative of the Reit’s future performance” as it includes two quarters of contribution from its Australia portfolio. Prior to the announcement, units of Soilbuild Reit ended the day down half a Singapore cent or 0.9 per cent at 53.5 cents.

Penguin International: A consortium comprising Penguin International’s executive chairman, managing director and a Dymon Asia fund intends to take the company private at S$0.65 per share. The company on Thursday evening lifted its trading halt called on Wednesday morning. Its counter last traded at S$0.63 on Tuesday.

Kimly: The Catalist-listed coffeeshop consolidator’s wholly-owned subsidiary, Kimly Makan Place, has entered into a joint venture (JV) agreement to run a coffeeshop at Hougang. The aggregate consideration of S$735,000 has been paid in cash through the utilisation of the net proceeds from the company’s initial public offering, said the group on Thursday after its shares closed up half a Singapore cent or 1.5 per cent at 33.5 cents.

Union Gas Holdings: On Thursday the group said its wholly-owned subsidiary has entered into a bond subscription agreement with secure data handling services provider Adera AI for an aggregate principal amount of S$1 million of convertible bonds. Shares of Union Gas ended at 54 Singapore cents, up 2.5 Singapore cents or 4.9 per cent, before the announcement.

Oceanus Group: The seafood supplier’s shares surged 8.2 per cent to 5.3 Singapore cents just 36 minutes after the market opened on Thursday. By mid-afternoon, it had become the top traded share by volume, prompting queries from the Singapore Exchange. Oceanus has responded to say that it is not aware of any information concerning the company that might explain the unusual trading activity in its counter, which fell at the close of trading to 4.7 Singapore cents – 0.2 cent or 4.1 per cent lower than the previous day.

ISOTeam: The building maintenance company has secured contracts totalling about S$20.8 million. This brings the total value of projects secured for the financial year ended June 30, 2021 to around S$63.1 million, it said in a bourse filing on Thursday. These projects are expected to be progressively completed by February 2024. Prior to the announcement, shares of ISOTeam closed 0.1 Singapore cent or 0.8 per cent lower at 12.7 cents.

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