Daily Morning Note – 21 Oct 2020

PHILLIP SUMMARY

Asian stocks looked poised to track modest U.S. gains Wednesday as lawmakers continued to haggle over an aid package to bolster the economic recovery. The dollar held losses.

Futures were little changed in Japan, as were shares in Australia. S&P 500 edged higher after the benchmark bounced back from Monday’s selloff as House Speaker Nancy Pelosi continued to negotiate with the White House on a deal near $2 trillion. Tech shares mostly shook off the U.S. Justice Department’s decision to sue Google for allegedly abusing its power. Netflix Inc. plunged in late trading after it added fewer subscribers than predicted in the third quarter and issued a forecast that missed Wall Street estimates.

BREAKING NEWS

,strong>Keppel Data Centre (DC) Reit on Tuesday posted a distribution per unit (DPU) of 2.357 Singapore cents for the third quarter, up 22.1 per cent from a year ago. Distributable income jumped 47.6 per cent to S$40.48 million on the back of new acquisitions, it said in its operational update. Meanwhile, net property income was up 47.6 per cent to S$62.37 million; gross revenue rose 46 per cent to S$67.67 million.

Mapletree Logistics Trust’s (MLT) manager on Tuesday proposed an equity fundraising of new units in the trust to raise gross proceeds of up to S$650 million. This is to partially fund MLT’s acquisition of Asia logistics properties. The trust is looking to acquire nine logistics properties in China, Malaysia and Vietnam, and also the remaining 50 per cent interest in 15 properties in China for a total of S$1.09 billion, the manager said on Monday in a separate bourse filing.

OCBC on Tuesday said it has extended a three-year S$100 million corporate loan referencing the Singapore Overnight Rate Average (SORA) to Sembcorp Financial Services, a wholly-owned subsidiary of Sembcorp Industries (SCI). This is the first SORA-based loan in the energy sector and is another step by OCBC to contribute to Singapore’s development of the SORA markets, the lender said. The S$100 million SORA-pegged loan is part of a S$300 million loan extended by OCBC to SCI. Its interest rate, referencing SORA, has two components – a compounded average of daily SORA rates calculated in arrears plus an applicable margin.

IREIT Global on Monday concluded an oversubscribed rights issue, raising some S$142.8 million to finance the acquisition of properties in Spain and repay a loan from City Developments Limited (CDL). Valid acceptances and excess applications totalling 484.4 million rights units were received, which meant the rights issue was 166.2 per cent subscribed, said the Europe-focused real estate investment trust’s manager in a filing late Monday night.

The trustee of Suntec Real Estate Investment Trust (Suntec Reit) has priced S$200 million in subordinated perpetual securities at 3.8 per cent, the Reit manager said on Monday night in a bourse filing. Net proceeds from the issue will be used by the Reit and its subsidiaries for refinancing existing borrowings, financing or refinancing acquisitions and/or investments, financing any asset enhancement works which it has an interest in, as well as general corporate purposes.

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

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