Industry News

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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Sembcorp Industries (SCI) has reported a 10% shortfall in its core profit for the first half of 2025, primarily due to weaker gas-related earnings, according to a recent report by DBS Group Research. Despite this setback, the company remains a key player in Asia’s energy transition, with plans to significantly expand its renewable energy capacity by 2028.

The report highlights that SCI’s gas and related services saw a 15% year-on-year decline in earnings, attributed to moderating power spreads and the absence of high-margin gas trading contracts. Additionally, losses from renewable imports from Malaysia are expected to persist until 2026 due to accreditation issues affecting pricing.

However, SCI’s renewable and integrated urban solutions sectors performed well, with net profits growing by 22% and 14% year-on-year, respectively. The company is also exploring capital recycling opportunities, particularly in India, to fuel further growth and acquisitions in new renewable markets.

DBS Group Research maintains a “BUY” rating for SCI, with a revised 12-month price target of SGD7.40, down from SGD8.00. The report cites potential catalysts such as accretive acquisitions and capital recycling of Indian renewable assets as key drivers for future growth.

Despite the current challenges, SCI’s management remains committed to rewarding shareholders, having declared a higher interim dividend of 9 Singapore cents per share. The full-year dividend is expected to remain at 23 Singapore cents, translating to a yield of approximately 3-4%.

In conclusion, whilst SCI faces near-term industry challenges, its strategic positioning and long-term growth plans in the renewable energy sector continue to offer promising prospects.
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Singapore Exchange (SGX) has reported record-high revenue and profit for the financial year 2025, according to a recent DBS Group Research report. The report highlights SGX’s strategic investments across multiple asset classes, including equities, fixed income, foreign exchange (FX), and commodities, which are expected to mitigate market cyclicality and drive future growth.

SGX’s management remains optimistic about the initial public offering (IPO) pipeline, which currently includes over 30 companies. This, coupled with the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme, is anticipated to further boost SGX’s share price. The report notes that SGX’s securities daily average value (SDAV) grew by 27% year-on-year, reflecting increased market activity.

The report also outlines SGX’s commitment to increasing dividends, with a proposed 0.25 Singapore cents per share increase each quarter from FY2026 to FY2028, contingent on earnings growth. The final quarterly dividend for FY2025 has been declared at 10.5 Singapore cents per share, up from the previous 9 cents.

DBS maintains a “BUY” rating for SGX, with a target price of SGD18.20, citing the exchange’s robust revenue drivers and strategic positioning. The report warns, however, that slower-than-expected growth across various asset classes could pose risks to these estimates.

As SGX continues to enhance its capabilities and technology infrastructure, it remains on track to achieve its medium-term guidance of 6%-8% growth in net revenue, excluding treasury income. This growth is supported by a strong focus on thematic product development and increased client adoption.
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Klook, a leading travel and experiences platform in Asia, is set to make its inaugural appearance at the NATAS Travel Fair 2025, taking place from 15 to 17 August at Singapore Expo. The company will showcase specially curated travel inspirations and exclusive deals aimed at multi-generational travellers, reflecting the growing demand for flexible, customisable holidays. This debut marks Klook’s commitment to offering enriching and accessible travel experiences that cater to diverse family interests and comfort levels.

Sarah Wan, General Manager for Klook Singapore, Malaysia, and Indonesia, highlighted the increasing trend of multi-generational trips on their platform, stating, “Over the past year, the number of users booking multi-generational trips on our platform has grown—a clear signal that they are actively seeking meaningful, stress-free travel experiences.”

Klook’s participation comes as multi-generational travellers increasingly plan family trips, especially ahead of the September and year-end school holidays. Steven Ler, President of NATAS, expressed enthusiasm for Klook’s participation, noting that their focus on multi-generational travellers adds significant value to the fair.

Visitors to the Klook booth can expect a variety of exclusive offers, including up to $120 off sitewide on Klook bookings, additional savings with Citi and HSBC credit cards, and 50% off flash deals on select services. The booth will also feature on-site experts providing travel recommendations and booking guidance.

Klook’s presence at NATAS 2025 is not just about deals but also an invitation for Singaporeans to rethink travel as a means to reconnect with loved ones and rediscover joy.
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The Monetary Authority of Singapore (MAS) has released a circular detailing new governance and management requirements for Variable Capital Companies (VCCs). Issued on 26 June 2025, the circular follows a thematic review by MAS and outlines key regulatory expectations for fund managers operating VCCs.

The circular, identified as IID 04/2025, emphasises the need for robust governance frameworks to ensure the effective management of VCCs. This move is part of MAS’s ongoing efforts to strengthen Singapore’s position as a leading fund management hub. The circular highlights several areas of focus, including the roles and responsibilities of directors, risk management practices, and the importance of maintaining high standards of corporate governance.

MAS’s observations from the review indicate that whilst many VCCs have adopted sound governance practices, there is room for improvement. The circular serves as a guide for fund managers to align their operations with regulatory expectations and enhance their governance structures. This is crucial for maintaining investor confidence and ensuring the long-term sustainability of the VCC framework.

Fund managers are advised to review their current practices and make necessary adjustments to comply with the new guidelines. The circular also provides a roadmap for implementing these changes, ensuring a smooth transition for fund managers.

As Singapore continues to attract global investment, the enhanced governance standards are expected to bolster the country’s reputation as a secure and reliable financial centre. The MAS circular is a significant step towards ensuring that VCCs operate with transparency and accountability, ultimately benefiting investors and the broader financial ecosystem.
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