Market Snapshot

Singapore stocks opened higher on Tuesday. STI rose 0.2%; Sunpower up 4%; SingPost up 1%; Nio down 5%.

Stocks in Focus

CapitaLand Integrated Commercial Trust : The trust posted a 3.5 per cent rise in distribution per unit (DPU) to 5.62 cents for the first half of 2025. This rise was largely due to the six-month contribution from ION Orchard, better performance from existing properties and lower interest expenses from lower gearing and an easing interest rate environment. Revenue dipped 0.5 per cent to S$787.6 million, while net property income fell 1.7 per cent to S$579.9 million. The counter closed 2.28 per cent or S$0.050 up on Monday (Aug 4) at S$2.240.

CapitaLand Ascendas Reit : The industrial property player posted a 0.6 per cent drop in DPU for the first half of the 2025 financial year, down to S$0.07477, on the back of an enlarged unit base. The unit base grew 0.7 per cent year on year. The Reit also posted a 2 per cent lower H1 revenue at S$754.8 million due to the divestment of five properties in Australia, Singapore and the US, and the decommissioning of a property in the UK for redevelopment in June 2024. Its units closed Monday up 2.2 per cent or S$0.06 at S$2.80, before the results were released.

Lendlease Global Commercial Reit : The Lendlease Global Commercial Reit posted a 1.8 per cent increase in DPU for the first half of FY2025. The higher DPU was due to better performance of its Singapore properties and lower finance costs, said the Reit’s manager on Monday. Revenue rose 1.9 per cent to S$102.9 million, while net property income was 2.7 per cent higher at S$73.8 million. The Reit’s units closed Monday 2.7 per cent or S$0.015 higher at S$0.565, before the financial statements were released.

Frasers Hospitality Trust : The trust posted mixed results across its markets on Monday for the third quarter ended June. RevPAR fell by between 1.2 per cent and 5.6 per cent in Singapore, Australia and Malaysia. On the other hand, RevPAR rose 17.6 per cent in Japan, and 0.1 per cent in the United Kingdom. The average daily rate increased 8.3 per cent year on year, mainly due to weakness in the transient and corporate segment, but there was a 4 percentage occupancy improvement to 73 per cent for its Singapore portfolio for the quarter. Units of Frasers Hospitality Trust rose 0.7 per cent or S$0.005 to S$0.705 on Monday, before the results were published.

Sunpower : The environmental protection solutions provider received 135.2 million yuan (S$24.2 million) in biomass subsidies from the state grid corporation of China. This was for biomass electricity generated through the Xintai Project from April 2023 to December 2024. The subsidies were granted under China’s policy to support renewable energy development. The group said on Tuesday that it plans to build artificial intelligence-powered thermal and steam pipeline networks and expand into renewable and alternative energy development. Shares of Sunpower closed Monday flat at S$0.23.

SG Local News

Singapore sets up economic strategy review under tariff task force to take ‘fresh look’ at longer-term strategies: DPM Gan

The Republic is carrying out an economic strategy review (ESR) to look at its longer-term strategies, given the significant challenges brought by a new regime of US tariffs as well as the fraying multilateral trading system.

Announcing this on Monday (Aug 4), Deputy Prime Minister Gan Kim Yong said that the review will replace one of the work streams of the Singapore Economic Resilience Taskforce (Sert) that he chairs – one that looks at developing longer-term strategies to help businesses and the workforce “seize opportunities in the new economic landscape”.

CICT to acquire 55% of CapitaSpring at 1.1% accretion to DPU

On Aug 5, CapitaLand Integrated Commercial Trust (CICT) announced the proposed acquisition of the 55% of CapitaSpring it does not own. Of this 45% is from CapitaLand Development (CLD) and 10% is from Mitsubishi Estate Co (MEC).

The agreed property value is $1,900.0 million on a 100% basis. The agreed property value is the average of two independent valuations of the Commercial Component, commissioned separately by the trustee and the manager of CICT.

On a pro forma basis, the acquisitions are expected to deliver a DPU accretion of 1.1%, assuming CICT had held and operated 100% of CapitaSpring’s Commercial Component from January 1 to June 30. Pro forma aggregate leverage is expected to increase marginally to 38.3% from 37.9% as at June 30.