Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes – just in case they’re material to our investing thesis. The Straits Times Index (SGX: ^STI) has increased by 0.5% to 3,306 points with 21 of its 30 constituents ending the day in the green. In contrast, there were only eight other blue chips which had lost some ground. Given that there’s no shortage of blue chips with gains, let’s take a look three which had done better than the STI. Ascendas Real Estate Investment Trust…
Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes – just in case they’re material to our investing thesis.
The Straits Times Index (SGX: ^STI) has increased by 0.5% to 3,306 points with 21 of its 30 constituents ending the day in the green. In contrast, there were only eight other blue chips which had lost some ground.
Given that there’s no shortage of blue chips with gains, let’s take a look three which had done better than the STI.
Ascendas Real Estate Investment Trust (SGX: A17U) is up 0.9% to S$2.31. The REIT, which has a focus on business spaces and industrial parks, revealed last Friday that it would be acquiring a property in Singapore for S$458 million.
The property in question is Aperia, “a newly completed integrated mixed-use development” located in Kallang. According to the REIT’s Manager, the acquisition “will be in line with [its] stated growth strategy of acquiring well-located, good quality business space.” Aperia is seated at the fringes of Singapore’s Central Business District and is easily accessible by both public and private transport. In addition, the property has already secured leases for 46% of its lettable area with another 15% “in advanced negotiations.”
Ascendas REIT would be relying on debt as well as the proceeds from an 8 March 2013 private placement to fund the purchase of Aperia. The extra borrowings would raise Ascendas REIT’s aggregate leverage ratio from 31.6% (as of 30 June 2014) to 34%. Investors would have to be comfortable with the slight increase in financial risk that the REIT’s taking on.
Logistics facilities provider Global Logistic Properties Ltd (SGX: MC0) has gained some 1.1% to S$2.75 following its announcement earlier today of a sale of nine Japanese properties to a REIT it manages. The transaction, which is expected to be completed in September 2014, would see the nine properties being sold to GLP J-REIT for a total sum of JPY53.8 billion (around US$529 million).
The company has plans to use the proceeds from the sale to “retain its 15% stake in [GLP J-REIT]” as well as to fund the development of more logistics facilities in its key geographical markets of China, Brazil, and India. Mr. Jeffrey H. Schwartz, Chairman of Global Logistic Properties’ Executive Committee, commented that the sale “is consistent with [the company’s] capital recycling strategy aimed at enhancing shareholder value and growing [its] fund management platform.”
Noble Group Limited (SGX: N21), which manages supply chains for agricultural and energy products globally, rounds up the trio with its shares climbing 1.5% to S$1.37.
Last Thursday saw the company release its results for the first half of 2014. For the six months ended 30 June 2014, Noble Group experienced a 3% year-on-year increase in revenue to US$41.5 billion. However, profit more than doubled from US$104 million to US$218 million due mainly to an improvement across its various business platforms. The company provided some colour as follows:
“In Energy, our Energy Coal & Carbon Complex division is leveraging on its leadership position in Asia and expanding its supply chain, establishing new flows in Europe. The Oil, Gas & Power division was opportunistic in capturing margin opportunities and successfully risk managed around the extreme volatility seen in the energy markets during the first six months of 2014.”
One other noteworthy figure from Noble Group’s earnings release concerns its tonnage. In the first half of 2014, the company’s tonnage reached a record of 125 million tonnes, a 13% increase compared to a year ago.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Chong Ser Jing doesn’t own shares in any companies mentioned.