Industry News

The Singapore Governance and Transparency Index (SGTI) 2025 has crowned SATS as the top performer in the General Category, whilst CapitaLand Ascott Trust leads the Real Estate Investment Trust (REIT) and Business Trust Category. The annual index, conducted by CPA Australia, the Centre for Governance and Sustainability at the National University of Singapore Business School, and the Singapore Institute of Directors, evaluates Singapore Exchange-listed companies on corporate governance and disclosure practices.

The SGTI 2025 assessed 467 companies and 42 REITs and business trusts, using a “BREAD” framework focusing on Board Responsibilities, Rights of Shareholders, ESG and Stakeholders, Accountability and Audit, and Disclosure and Transparency. SATS topped the General Category, followed by Keppel and Singapore Telecommunications. In the REIT and Business Trust Category, CapitaLand Ascott Trust was followed by CapitaLand Ascendas REIT and CapitaLand Integrated Commercial Trust.

Greg Unsworth, Singapore Divisional President of CPA Australia, highlighted the index’s role in promoting transparency and accountability, stating, “The SGTI continues to set the benchmark for governance excellence.” The index plans to evolve by incorporating financial indicators into its assessment framework, aiming to provide a more comprehensive view of corporate performance.

Professor Lawrence Loh from the National University of Singapore Business School noted, “Corporate governance is the cornerstone of trust and sustainable value creation.” The SGTI’s future enhancements will include broader measures to ensure organisations remain accountable and aligned with stakeholder expectations.
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Soilbuild Construction has reported a remarkable net profit of S$28.3 million for the first half of the financial year 2025, surpassing the full-year profit of S$26.6 million achieved in 2024. This impressive performance is attributed to robust revenue growth in its Construction and Precast & Prefabrication divisions, which saw increases of 76.7% and 77.3% respectively compared to the same period last year.

The company’s gross profit soared by 193.5% to S$43.6 million, supported by a higher gross profit margin. Additionally, Soilbuild Construction generated a strong positive cash flow from operating activities, amounting to S$47.1 million during the period. The company’s balance sheet was further strengthened with total assets reaching S$337.2 million and cash and cash equivalents of S$58.4 million as of 30 June 2025.

Executive Director and Group CEO Lim Han Ren expressed satisfaction with the results, stating, “We are pleased to begin the first half of the year on a strong footing, where our team’s focus on operational excellence, cost optimisation, and timely project delivery has translated into robust revenue growth and enhanced profitability.”

The company also announced a proposed interim dividend of 2 pence per share for 1H 2025, double the payout of 1 pence per share in 1H 2024, reflecting its commitment to rewarding shareholders. With an order book of approximately S$1.19 billion, Soilbuild Construction is poised for continued growth, reinforcing its position as a sustainable and resilient builder.
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UMS Integration Limited, listed on the SGX Mainboard, has announced a 5% increase in net attributable profit, reaching S$20.1 million for the first half of FY2025. This growth is attributed to a 14% rise in revenue, totalling S$125 million, despite challenges such as US trade tariffs and geopolitical tensions.

The company’s semiconductor segment was a significant contributor, with sales surging by 17% to S$107.4 million. This increase offset declines in other areas, such as a 14% drop in aerospace sales due to delivery delays. UMS’s CEO, Andy Luong, highlighted the company’s resilience and strategic focus, stating, “We continue to do better every quarter—delivering improved results in the second quarter compared to the first quarter of FY2025 despite unprecedented challenges.”

UMS also declared a second interim dividend of 1 cent per share, bringing total dividends to 2 cents per share for the first half of the financial year. The company remains optimistic about future growth, particularly in the semiconductor sector, which is expected to benefit from AI-driven demand and global supply chain shifts.

Looking ahead, UMS is poised to capitalise on the global semiconductor industry’s recovery and the ongoing aviation boom. The company has also successfully completed a secondary listing on Bursa Malaysia, which is expected to enhance shareholder value and improve share liquidity.
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OKP Holdings Limited, a Singapore-based infrastructure and civil engineering company, announced a significant 60.7% increase in net profit attributable to equity holders, reaching S$19.1 million for the first half of 2025. This growth was primarily fuelled by a 41.2% rise in revenue to S$104.3 million, largely due to ongoing and newly awarded construction and maintenance projects.

The company’s robust order book, valued at S$648.3 million, extends until 2031, reflecting its strategic focus on civil engineering and infrastructure projects, particularly in the public sector. The Group’s Managing Director, Or Toh Wat, highlighted the company’s commitment to efficient project delivery and innovation to maintain a competitive edge. “We are pleased to report a strong financial performance, boosted by higher revenue recognised for our various ongoing and newly awarded construction projects,” he stated.

The construction segment saw a 57.4% increase in revenue, whilst the maintenance segment grew by 21.1%. However, rental income declined by 39.8% due to renovations and tenant transitions at a property in Perth, Australia. Despite these challenges, OKP’s gross profit rose by 54.2% to S$32.1 million, with improved margins from select projects.

Looking ahead, OKP remains focused on expanding its order book and diversifying its income streams. The company recently secured a S$258.3 million contract from the Land Transport Authority for new cycling paths in Singapore, marking its largest contract win to date. With a strong balance sheet and strategic investments, OKP is well-positioned to navigate economic uncertainties and sustain growth.
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SGX-listed Stoneweg Europe Stapled Trust (SERT) has announced robust financial results for the first half of 2025, ending 30 June. The trust reported a 4.9% increase in like-for-like net property income (NPI) and an 11.9% rent reversion, leading to a 3.5% uplift in net asset value (NAV) to €2.05 per stapled security. This performance is attributed to major leasing activities and strategic investments.

SERT’s financial position remains strong, with no debt maturing until the end of 2026, following a successful €500 million green bond issuance in January 2025. The trust’s interest coverage ratio stands at 3.2 times, reflecting its robust financial health. Additionally, SERT has made a €50 million early investment into AiOnX, a data centre development initiative, securing 1.45GW of power across five strategic locations.

Despite a 7% year-on-year decrease in distribution per stapled security (DPS) to 6.553 Euro cents, the decline aligns with market expectations and is primarily due to increased interest expenses. The trust’s CEO, Simon Garing, expressed confidence in SERT’s portfolio, stating, “SERT’s portfolio performance and valuation momentum reinforce our confidence in the strength and resilience of our assets.”

The trust’s portfolio, valued at €2.25 billion, comprises 104 properties across key European cities, with a focus on logistics, light industrial, and data centre sectors. SERT aims to enhance its portfolio through asset management and strategic investments, ensuring sustainable returns amidst geopolitical and economic uncertainties.
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SGX-listed United Hampshire US Real Estate Investment Trust (UHREIT) has reported a 4% increase in its distribution per unit (DPU) for the first half of 2025, reaching 2.09 US cents. This marks the second consecutive period of growth, driven by strategic portfolio management and capital recycling efforts. Despite a 3% year-on-year decrease in gross revenue to $35.7 million and a 5.6% drop in net property income to $24 million, UHREIT’s proactive measures have bolstered its financial performance.

The decline in revenue was primarily due to the divestment of three properties, including the Albany Supermarket. However, excluding these divestments, UHREIT’s gross revenue and net property income saw a year-on-year increase of 2.6% and 2.4%, respectively. The rise was attributed to new leases and rental escalations.

Gerard Yuen, CEO of the Manager, highlighted the resilience of the Grocery & Necessity and Self-Storage sectors, stating, “An improved tenant mix, higher occupancy, and lower financing cost have contributed to a second consecutive increase in DPU.”

UHREIT’s acquisition of Dover Marketplace in Pennsylvania for $16.4 million is expected to further enhance its DPU by 2%. The property, anchored by GIANT supermarket, boasts a committed occupancy rate of 96.1% and a long weighted average lease expiry of 9.7 years.

Looking ahead, UHREIT plans to continue strengthening its portfolio through asset enhancement, development initiatives, and strategic acquisitions, ensuring robust income streams amidst evolving economic conditions.
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Taiwan is making a concerted effort to attract Singaporean travellers during the year-end holiday season by participating in Singapore’s largest outbound travel fair, NATAS Holidays 2025, from 15 to 17 August. The Taiwan Tourism Administration, alongside local governments and tourism stakeholders, aims to showcase Taiwan’s rich tourism offerings under the campaign theme “Take a Sip of Taiwan.”

A delegation of 117 representatives from 70 organisations will highlight Taiwan’s immersive experiences, cultural charm, and dynamic events. According to surveys from NATAS Holidays 2024, 90% of respondents had previously visited Taiwan, with nearly half having visited three times or more, indicating a strong interest in the destination. With frequent direct flights and cultural similarities, Taiwan and Singapore are well-positioned for bilateral tourism growth.

The Taiwan Pavilion at NATAS will feature interactive elements, including the SHANLAN Express tourism train photo zone, and activities such as a DIY fan-painting workshop and a five-senses tea experience. Visitors purchasing Taiwan travel packages can redeem exclusive gifts and enter draws for luxury hotel stays and roundtrip flights.

Taiwan’s youth diabolo troupe, WHO Theatre, will headline the NATAS Opening Ceremony on 15 August with their performance “Shake It Like Boba,” inspired by bubble tea. Additionally, a Taiwan Tourism Workshop on 18 August at Hilton Orchard Singapore will facilitate business matchmaking between Taiwanese and Singaporean travel professionals.

As Singapore remains a key tourism market for Taiwan, the Taiwan Tourism Administration plans to continue leveraging diverse marketing strategies to elevate Taiwan’s global tourism profile.
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DBS Group Research has issued a report on Daiwa House Logistics Trust (DHLT), maintaining a ‘buy’ rating but slightly lowering the 12-month target price to SGD0.63 from the previous SGD0.65. This adjustment reflects the trust’s performance in the first half of 2025, where the distribution per unit (DPU) of 2.24 Singapore cents fell slightly below expectations due to foreign exchange movements.

DHLT, which owns a portfolio of 19 modern logistics facilities, continues to benefit from high occupancy rates and a healthy average rental uplift of approximately 10% in the first half of 2025. The trust’s recent acquisition of a high-quality logistics facility in Greater Tokyo is expected to generate an accretion of more than 3%, supporting its strategy to optimise gearing and pursue accretive acquisitions.

Despite the positive rental trends, DHLT faces challenges from a weak Japanese yen, impacting earnings. The trust’s gearing remains stable at 40.7%, with borrowing costs expected to rise slightly by the end of the year. However, DHLT’s strong operating fundamentals, including a long weighted average lease expiry of around six years, provide a solid foundation for future growth.

DBS Group Research’s revised target price is based on a discounted cash flow valuation method, implying a target yield of approximately 7.0%. The report highlights potential risks, including further weakening of the yen and increased gearing, but remains optimistic about DHLT’s prospects in the logistics property market in Japan.
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DBS Group Research has maintained its “hold” recommendation for IREIT Global, adjusting the 12-month price target to SGD0.30, up from the previous SGD0.25. This adjustment reflects the anticipated benefits from the ongoing repositioning of the Berlin Campus, expected to yield results by FY27. The report highlights that IREIT’s diversified portfolio, which includes 53 assets across Germany, France, and Spain, remains stable despite current challenges.

The Berlin Campus, a significant component of IREIT’s portfolio, is undergoing a major repositioning following the non-renewal of its main tenant’s lease. This has led to a temporary decline in gross revenue and net property income for the first half of 2025. However, DBS analysts Dale Lai and Derek Tan note that the repositioning is expected to enhance earnings once completed.

The report also points out that IREIT’s acquisition of 17 retail assets in France has diversified its portfolio, reducing office exposure and increasing retail assets to approximately 20%. Despite near-term uncertainties, such as potential prolonged vacancies and a slowdown in the office leasing market, the portfolio’s valuation has seen a slight improvement.

DBS Group Research warns of potential risks, including delays in the Berlin Campus project and rising financing costs. However, the successful issuance of SGD85 million in green notes and ongoing discussions with potential tenants are seen as positive steps towards mitigating these risks. The report concludes with a cautious outlook, maintaining the “hold” recommendation due to expected challenges in FY26, including increased borrowing costs and elevated gearing levels.
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DBS Group Research has reaffirmed its “buy” recommendation for Mapletree Industrial Trust (MINT), setting a 12-month price target of SGD2.60, representing a 31% upside from its last traded price of SGD1.99 on 7 August 2025. The research report notes that MINT’s recent divestment of three Singapore properties for SGD535 million, at a 2% premium to valuation, is expected to reduce its gearing from approximately 40% to 37%, thereby enhancing its financial flexibility for future acquisitions.

MINT, one of Singapore’s largest industrial landlords, has a diversified portfolio that includes data centres and high-specification properties catering to various industries. This diversification is seen as a strength, particularly in light of recent concerns over dividend sustainability and capital value risks in the US. The trust has managed to renew or backfill around 70% of lease expiries over the past two years, demonstrating the ongoing demand for its assets.

The report suggests that MINT’s increased debt capacity could facilitate acquisitions, potentially replacing income lost from divestments. The manager is reportedly exploring opportunities in developed markets in Asia and Europe. “We see a gradual bottoming out trend with upside from acquisitions,” the report states, maintaining the SGD2.60 target price based on discounted cash flow analysis.

However, DBS cautions that higher interest rates could impact distribution per unit (DPU) estimates. Additionally, a sustained weakness in the USD:SGD exchange rate poses a medium-term risk, although 90% of MINT’s income is hedged for the next 12 months.
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