Regional News

Netlink NBN Trust has announced its financial results for the first quarter of the fiscal year ending March 2026, revealing a revenue of $75.3 million (S$102.8 million) and a net profit of $17.1 million (S$23.3 million). This accounts for 24% and 22% of the company’s full-year forecasts, respectively. The increase in non-Regulated Asset Base (non-RAB) revenue, which rose by 29% quarter-on-quarter, was primarily driven by installation-related services and ongoing projects like the North-South Corridor.

The company’s non-RAB business, which includes service-based segments, saw a revenue increase of 10.3% year-on-year, contributing to a dip in the EBITDA margin by 2.7 percentage points. This was attributed to higher operating expenses associated with these services. Additionally, increased depreciation and net finance costs led to an 8% year-on-year decrease in profit after tax for the quarter.

Residential and non-residential connection revenues remained stable, although both segments experienced a 0.7% decline in connection counts. This was due to Requesting Licensees deactivating inactive lines as part of database maintenance. Despite these challenges, Non-Building Address Points and segment connection counts rose by 15% and 1.8%, respectively, driven by demand from smart city infrastructure and enterprise deployments.

Netlink NBN Trust maintained its target price at $0.73 (S$1.00), supported by a projected dividend yield of 6.1% for FY26. The trust’s management also reported a lower gearing of 20% and increased its hedging ratio to 78.9% in the first quarter, expecting interest savings in future quarters. The company continues to focus on initiatives under Smart Nations 2.0, whilst potential risks include regulatory pricing changes and construction disruptions.
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Elite UK REIT, the only UK-focused real estate investment trust listed in Singapore, has reported a 10% year-on-year increase in its distribution per unit (DPU) for the first half of 2025, reaching 1.54 pence. This performance slightly exceeded expectations, supported by a 95% payout ratio compared to 90% in the same period last year, according to DBS Group Research. The trust’s revenue grew marginally by 0.5% to £18.7 million, driven by positive rental reversions and contributions from newly acquired properties.

The REIT is actively engaging in lease regearing negotiations with the Department for Work and Pensions (DWP), which is a major tenant contributing 92% of its gross rental income. This strategic move aims to address lease expiries in 2028, with plans to regear approximately 30% of the portfolio by the end of the year.

In a bid to diversify and enhance its portfolio, Elite UK REIT has received planning approval to convert Lindsay House in Dundee into a 168-bed purpose-built student accommodation (PBSA). This project is part of a broader strategy to capitalise on the favourable supply-demand dynamics in the UK’s student housing market. The conversion is expected to be completed before the academic year starting in September 2027.

Additionally, the REIT is progressing with plans to develop a hyperscale data centre at Peel Park, Blackpool. The asset’s valuation has already increased by 36% year-on-year, and further growth is anticipated with the secured power capacity doubling.

Elite UK REIT maintains a “BUY” recommendation from DBS Group Research with a revised target price of £0.40, reflecting its strategic focus and proactive portfolio management. The trust’s forward yield of over 9% and trading at a 0.85x price-to-book value ratio offer compelling value to investors.
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OCBC has announced a strategic shift in response to declining interest rates and an escalating trade war environment, as revealed in its Q2 2025 financial update. The bank’s net profit for the quarter was S$1.816 billion, a 7% year-on-year decrease, largely due to a 12 basis point drop in net interest margin (NIM) to 1.92%. This decline was attributed to falling benchmark rates in Singapore and Hong Kong. Consequently, OCBC has revised its full-year NIM guidance to between 1.90% and 1.95%, down from the previous 2%.

The bank’s refreshed strategy focuses on four growth pillars: capturing rising Asian wealth, supporting trade and investment flows, leveraging digitisation, and driving sustainability. OCBC aims to achieve an incremental S$3 billion in cumulative revenue by 2025, targeting a return on equity (ROE) of 13% to 14%.

Despite the challenging environment, OCBC maintains a robust capital position with a Common Equity Tier 1 (CET1) ratio of 17%. The bank has also declared an interim dividend of 41 Singapore cents per share, reflecting a 50% payout ratio for the first half of 2025.

Analysts from DBS Group Research have maintained a “HOLD” recommendation on OCBC shares, with a target price of S$15.80, citing potential downside risks from asset quality and faster-than-expected Federal Reserve rate cuts. The bank’s management remains cautious, with plans for further capital management on hold, although they are open to inorganic acquisitions that align with OCBC’s strategic goals.

As OCBC navigates these economic headwinds, its focus on strategic growth and maintaining strong capital ratios will be critical in sustaining its financial health and shareholder returns.
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The FTSE ST Industrials Index has outpaced the Straits Times Index (STI) with a remarkable 13.2% gain in July. This performance highlights the robust recovery and investor confidence in the industrial sector amidst global economic uncertainties. The index’s surge is attributed to strong institutional inflows and strategic investments in key industrial stocks.

The industrial sector’s impressive performance is underscored by the significant net institutional inflows into top stocks. Notably, iFast Corporation, with a market capitalisation of S$7,686 million, recorded a 12.9% total return in July. This trend reflects a broader investor shift towards industrial stocks, driven by their attractive valuations and growth potential.

American Century Investment’s recent move to surpass the 5% substantial shareholder threshold in Rex International further exemplifies the growing interest in industrial stocks. The investment is primarily held through the Avantis International Small Cap Value ETF, which targets small-cap stocks in non-US developed markets. As of 24 July, the ETF held 5.3% of Rex’s outstanding shares.

The industrial sector’s strong performance is a positive indicator for investors seeking stable returns amidst fluctuating global markets. With the FTSE ST Industrials Index leading the charge, market analysts suggest that the sector’s resilience and growth prospects make it an attractive option for investors.

Looking ahead, the continued focus on industrial stocks and strategic investments could sustain this momentum, offering promising opportunities for investors in the coming months.
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Lendlease Global Commercial REIT has reported a 1.8% year-on-year increase in its distribution per unit (DPU) for the second half of the financial year 2025, reaching 1.80 pence. This growth is attributed to a more favourable interest rate outlook and positive rental growth across its portfolio. The REIT’s manager has also announced the divestment of the Jem office for S$462.0 million, a move expected to bolster the REIT’s capital structure and reduce its leverage.

The divestment of the Jem office is set to reduce Lendlease REIT’s aggregate leverage from 42.6% to approximately 35% on a proforma basis, providing improved financial flexibility for future growth. The transaction aligns with the valuation and is part of the REIT’s strategy to optimise its portfolio.

Financially, Lendlease REIT experienced a 6.5% decrease in gross revenue and a 10.0% drop in net property income for FY2025, primarily due to the upfront recognition of supplementary rent from the Sky Complex lease restructuring in FY2024. However, after adjustments, gross revenue and net property income showed a slight increase year-on-year.

Operationally, the REIT’s portfolio saw a 2.2% increase in valuation, driven by a positive outlook for its Singapore assets. The retail portfolio maintained a strong occupancy rate of over 99%, with a positive rental reversion of 10.23%. In Milan, commercial Buildings 1 and 2 achieved a 17.4% rental uplift due to annual rental escalation.

CEO Guy Cawthra highlighted the significance of the Jem office divestment, stating, “The divestment of Jem Office marks an important milestone in reducing our leverage, strengthening our capital structure, and reducing our interest expense.”

Looking ahead, Lendlease REIT’s core Singapore portfolio, including 313@somerset and Jem, is expected to continue delivering robust operational performance, supported by a favourable interest rate environment. Unitholders can anticipate receiving their distribution on 24 September 2025.
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Samsung Electronics Singapore has launched its Business Experience Studio, a 2,150 square feet facility designed to help businesses harness Samsung’s innovative technology solutions. The studio aims to assist companies in visualising how they can integrate Samsung’s advanced solutions to meet their digitalisation needs across various sectors.

The studio features Samsung’s professional display range, enterprise-ready Galaxy devices, and business solutions such as Samsung Knox, Samsung Visual eXperience Transformation (VXT), and SmartThings Pro. These solutions are tailored for specific business and vertical use cases, developed in collaboration with local partners.

Timothy Tan, Head of Integrated Business at Samsung Electronics Singapore, stated, “The Business Experience Studio aims to demonstrate and inspire our customers on how they can design and deploy purposeful solutions from Samsung within their organisations.”

The studio is divided into ten zones, each showcasing Samsung’s hardware and solutions. Highlights include a Command and Control Centre with high-resolution commercial displays, and a SmartThings Pro platform for automation and monitoring. Samsung Knox provides real-time security for connected devices, addressing cybersecurity concerns.

Additionally, the studio presents solutions for hospitality, healthcare, and retail sectors, enhancing customer experiences and operational efficiencies. Samsung’s rugged devices and smart classroom solutions further demonstrate the company’s commitment to improving business productivity.

The Business Experience Studio complements the efforts of Samsung Singapore’s Integrated Business Team, which collaborates with public and private sector clients to deliver innovative solutions. The studio is open for bookings, offering businesses a glimpse into the future of digitalisation with Samsung’s technology.
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CapitaLand Ascendas REIT (CLAR) is set to enhance its portfolio quality by targeting an asset divestment of S$300-S$500m in 2025, primarily from its Singapore holdings. The REIT’s first half of 2025 results align with expectations, showing healthy rent reversions of 8% in Q2 and 9.5% in the first half, despite a slightly subdued occupancy rate. The REIT aims to maintain these rent reversions across its markets.

The strategic move to divest assets is expected to bolster CLAR’s performance in the second half of the year, with acquisitions and redevelopment contributions playing a significant role. Analyst Vijay Natarajan maintains a “BUY” recommendation for CLAR, with a target price of S$3.20, representing a 14% upside and a forecasted yield of 5.4% for the financial year 2025.

The REIT’s diversified exposure to business parks, logistics, and hi-tech industrial spaces positions it well for organic growth through asset redevelopment, improved occupancy rates, and rental enhancements. Backed by a strong sponsor, CLAR continues to be a key player in the industrial real estate sector.

Looking ahead, the REIT’s focus on strategic divestments and acquisitions is anticipated to drive its growth trajectory, ensuring sustained performance and value for its investors.
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A groundbreaking national research initiative, MAGNET, has been launched in Singapore to tackle sarcopenia, a condition characterised by the progressive loss of muscle mass and strength. Officially unveiled on 4 August 2025 at Duke-NUS Medical School, the $10 million project seeks to develop the world’s first precision therapies for sarcopenia, a condition affecting one in three Singaporeans aged 60 and above.

MAGNET, which stands for Mechanistic Investigation and Clinical Innovation for Sarcopenia Diagnosis and Therapy, is supported by the National Research Foundation under the National Medical Research Council’s Research, Innovation and Enterprise 2025 Open Fund. The initiative aims to uncover the biological mechanisms behind sarcopenia and create targeted treatments. Professor Kenneth Mak, Director-General of Health at the Ministry of Health, was the guest of honour at the launch.

The initiative is particularly timely as Singapore celebrates its 60th year, with an increasing number of its population reaching the age where sarcopenia becomes prevalent. Beyond exercise and nutrition, there are currently no approved treatments for the condition, which can lead to physical frailty and loss of independence.

MAGNET is calling for patient participation to donate biological samples, such as muscle tissue or blood, to build a sarcopenia biobank. Additionally, researchers in related fields are invited to collaborate in this multi-institutional effort. The consortium includes leading academic and healthcare institutions such as Duke-NUS Medical School, A*STAR, and several major hospitals across Singapore.

This initiative marks a significant step in addressing age-related health challenges, with potential implications for improving the quality of life for seniors in Singapore and beyond.
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In the second quarter of 2025, the average price for a landed home in Singapore fell below $2,000 per square foot (psf), marking a 0.9% decrease from the previous quarter, according to Lee Sze Teck
Senior Director, Data Analytics at Huttons. Despite this dip, prices are still 3.9% higher compared to the same period last year. The decline in average price is attributed to the larger average land size of homes sold during this period.

Sales volume for landed homes also saw a decline for the second consecutive quarter. The report suggests that tariffs may have influenced some buyers to delay their purchases, although this was not the primary factor for the price dip. The average land size of detached homes increased to 7,219 square feet in Q2 2025 from 6,344 square feet in Q1 2025, leading to a 10.5% fall in the average price of detached homes to $1,697 psf.

The total value of landed homes transacted in Q2 2025 was $2.2 billion, a 12.6% decrease quarter-on-quarter and a 5.1% decrease year-on-year. The most popular districts for landed home purchases were 15, 16, 19, 20, and 28. The price range for 99-year leasehold homes varied from $0.9 million to $5.8 million, while 999-year leasehold and freehold homes ranged from $1.8 million to $23.5 million.

Looking ahead, the easing of interest rates below 2% in July 2025 is expected to support demand in the latter half of the year. Additionally, clarity on tariffs following negotiations with the US is anticipated to have a positive impact on the global economy. Huttons forecasts that prices and sales volumes of landed homes may remain steady throughout 2025.
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Industrial leasing activity in Singapore experienced a significant uptick in the second quarter of 2025, according to Savills Singapore. The total leasing volume increased by 7.6% year-on-year, reaching 3,360 tenancies, marking the highest quarterly total since Q3 2021. This surge is attributed to occupiers prioritising operational flexibility, cost containment, and spatial efficiency amidst ongoing macroeconomic challenges and policy uncertainties.

Alan Cheong, Executive Director of Research and Consultancy at Savills Singapore, noted, “Global supply chains are in a state of flux. Until tariff policy from major economies like the US is clarified, many firms are taking a wait-and-see approach. Yet essential industrial operations cannot pause indefinitely.”

The report highlighted varied trends within the industrial property market. Prime multiple-user factory rents saw a decline of 1.4% quarter-on-quarter as firms consolidated space or renewed leases at more competitive terms. Conversely, prime warehouse and logistics rents increased by 4.3% quarter-on-quarter, driven by sustained demand from e-commerce, manufacturing, and third-party logistics operators. High-spec industrial rents also rose by 2.1% quarter-on-quarter, reflecting demand in areas with modern infrastructure.

Ashley Swan, Executive Director of Commercial and Industrial at Savills Singapore, observed, “Activity across most of Singapore’s industrial sectors has picked up, with occupiers actively surveying the market for opportunities. Notably, we’re seeing interest from new entrants looking to establish a presence in Singapore.”

Looking forward, Savills Singapore anticipates that renewals and strategic relocations will remain prevalent throughout 2025 as firms seek to maintain operational agility and hedge against trade volatility. The focus on flexibility and optionality is expected to continue, with occupiers increasingly requesting shorter lease tenures and early termination clauses to mitigate future risks.
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