Here are three things about the local stock market that you might be interested in today.
1. The Straits Times Index (SGX: ^STI) ended the day up 0.1%, or 3.7 points, to 3,536.8.
The best performer of the 30-stock index was Hutchison Port Hldg Trust (SGX: NS8U); its units rose 1.5% to US$0.335.
2. Singapore Telecommunications Limited (SGX: Z74) announced its earnings for the full year ended 31 March 2018 before the market opened today.
For the year, revenue rose 4.9% year-on-year to S$17.5 billion while net profit grew 41.5% to S$5.5 billion. The board is recommending a final dividend of 10.7 cents per share. This brings the total dividend for the 2018 financial year to 17.5 cents per share, excluding the special dividend of 3.0 cents per share already dished out.
You can learn more about the earnings here.
3. CapitaLand Commercial Trust (SGX: C61U), which currently owns 10 prime commercial properties in Singapore, is expanding overseas.
The REIT, together with CapitaLand Limited (SGX: C31), is acquiring Gallileo, a freehold Grade A commercial property in the central business district of Frankfurt, Germany. CapitaLand Commercial Trust will hold a 94.9% stake in the asset while CapitaLand will hold the remaining 5.1% stake. The acquisition is expected to be completed in June this year.
The property offers an attractive net property income yield of 4.0% and a weighted average lease expiry of 10.6 years. The property is fully occupied, with anchor tenant Commerzbank AG taking up around 98% of the building.
Gallileo’s agreed property value is €356 million (around S$569.6 million; on a 100% basis), and this represents a discount of 1.4% to the open market value.
CapitaLand Commercial Trust’s total acquisition cost of €342.7 million, or about S$548.3 million, will be funded via the net proceeds from a fully-underwritten private placement of around S$208.8 million (38.1%) and bank borrowings of €212.2 million (61.9%). CapitaLand’s share of the purchase will be fully funded by cash.
Kevin Chee, chief executive of CapitaLand Commercial Trust’s manager, said that expanding overseas is a strategic move to deliver long-term sustainable distribution growth to the REIT’s unitholders. He added that the trust would aim to “allocate between 10% to 20% of its deposited property overseas”.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Commercial Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Commercial Trust.