Daily Morning Note – 21 May 2018


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Singapore Industrial REITs – Stabilising average occupancy, average rent decline slowing
Target Price: S$0.48, Analyst: Chen Guangzhi
Analyst: Richard Leow
– Maintain Equal Weight view on Industrial REITs sub-sector
– Marginal QoQ improvement in sector occupancy, while Rental Index is lower
– Rental Index across the board yet to bottom, but Business Park rental made
new high
– Tapering of new supply in 2018 is a tailwind for the sector, but absorption of
vacant space is still slow
– History being made with the first industrial REIT acquisition of VIT by ESR-REIT


No trade war as China will “significantly increase purchases” of US goods, the White House said as Beijing’s special envoy at talks in Washington declared a trade war has been averted between the world’s two largest economies.

China companies seeking to raise funds by listing in Singapore will soon have to rope in state-owned enterprises (SOE) or mainland cornerstone investors, as Singapore Exchange Regulation (SGX RegCo) tries to win back the lost trust in S-chips.

Managers of Real Estate Investment Trusts (REITS) with overseas assets address investors’ concerns at a panel discussion at REITS Symposium 2018 over the weekend.

SINGAPORE Airlines (SIA) will spend over S$100 million overhauling SilkAir’s cabins from 2020 as it seeks to narrow the gap between the products onboard its parent airline and regional carrier ahead of an eventual merger. This will effectively leave SIA with two airline brands – the premium flagship airline and budget airline Scoot – after it folded Tigerair under Scoot last year.

LE Quest, a Qingjian Realty (South Pacific) Group mixed development project in Bukit Batok, sold 70 units on the first day of its Phase Two sales. Qingjian Realty has offered 115 units for sale on Saturday, just a week after it opened up the development for Phase Two preview.

Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, The Business Times, PSR

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