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Three Shares That Lost To the Market Today

It’s April Fools’ Day and the Straits Times Index (SGX: ^STI) has been able to contribute to this festival of joy and pranks by putting smiles on investors’ faces by moving up 0.3% to 3,199 points.

16 out of the index’s 30 shares managed to end the trading session with gains but nine others weren’t as fortunate as they ended up in the red. Let’s take a look at some shares, both within and outside the index, which had lost to the market today.

Global Logistic Properties (SGX: MC0) fell by 1.1% to S$2.62. The aptly-named logistics facilities provider had made known yesterday that it has leased some 21,000 square metres of logistics space to Sagawa Global Logistics Co., Ltd.

Sagawa happens to be one of Japan’s largest third-party logistics providers and it’s the first time the company has signed on to be a customer of GLP.

GLP commented that “Japan’s [third-party logistics providers] industry is benefitting considerably from the country’s ongoing reconfiguration of its supply chain system and growing domestic consumption.” The company added that it is “very pleased to establish a relationship with this industry leader [referring to Sagawa] and look forward to supporting their business growth.”

While 21,000 square metres is not a small space – it’s about three football fields in area – GLP has a much larger footprint in Japan with 3.8 million square metres of gross floor area for its completed logistics properties.

STATS ChipPAC (SGX: S24), a leading provider of advanced semiconductor packaging and test services, slipped by 2.8% to S$0.345. On Monday, the company revealed that its Chief Financial Officer and Senior Vice President, John Lau Tai Chong, would be stepping down from his current roles on 3 April 2014 to “pursue other career opportunities.” Lau has been CFO of STATS ChipPAC since Oct 2007.

Tan Lay Koon, Chief Executive Officer or the company, issued a short statement regarding Lau’s departure: “We thank John for his contributions to our finance and accounting function and wish him success in his future endeavors.”

STATS ChipPAC’s looking for replacements and would make known to the public its new hire for the position once ready.

Ascendas Hospitality Trust (SGX: Q1P) dropped some 3.4% to S$0.71 today after announcing earlier in the morning, the successful completion of a private placement of 73.53 million new units at an issue price of S$0.68 each. Based on the trust’s latest financials, the placement represented 7% of its prior existing unit-count of 1.035 billion.

The placement raised S$50 million for the trust (prior to deduction of relevant expenses) which would be used to help partially fund the trust’s purchase of Osaka Namba Washington Hotel Plaza. The acquisition was first made known last week on 26 March 2014 and would see Ascendas Hospitality Trust pay ¥8.9 billion (around S$110.8 million) in total for the hotel.

The hotel’s located “in the heart of Osaka’s Minami district, and enjoys robust demand from business and leisure travellers.” Based on pro-forma numbers (meaning the numbers are displayed as if the acquisition had already taken place) for the nine months ended 31 Dec 2013, the acquisition would help increase the trust’s distribution per unit from 4.07 Singapore cents to 4.15 Singapore cents even after accounting for dilution through the new private placement.

During the announcement for the afore-mentioned private placement, Ascendas Hospitality Trust also announced a Cumulative Distribution amount of between 2.79 Singapore cents and 2.95 Singapore cents per unit for existing investors. Investors in the private placement would not be entitled to the Cumulative Distribution.

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