With earnings season over, there has been little in the news to excite investors. However, three companies made announcements this week that will give shareholders reasons to cheer.
Inclusion into index
Keppel DC REIT (SGX: AJBU) announced that it will be included in the FTSE EPRA Nareit Global Developed Index from 23 September. While inclusion into an index does not impact its day-to-day operations, it generates greater investor interest and increases the trading liquidity of its stock.
Mr. Chua Hsien Yang, CEO of Keppel DC REIT said, “This is a significant milestone for Keppel DC REIT, and bears testament towards our commitment in growing the REIT to be recognised amongst real estate equities worldwide. This will enhance Keppel DC REIT’s visibility to index funds, and supports liquidity and capital raising efforts.”
Keppel DC REIT invests primarily in data centres and currently sports an annualised yield of 4.3%.
Investment paying off
Media giant Singapore Press Holdings Limited (SGX: T39) finally gave shareholders reason to smile. The publisher of the Straits Times, which has faced disruption to its core media business, announced a revaluation gain of 6.7% or £22.8 million (S$38.4 million) on its purpose-built student accommodation portfolio in the UK.
The value of its student accommodation portfolio now stands at £361.2 million. In its announcement, management said, “The fundamentals of the student accommodation sector remain strong, underpinned by the recognition of the value of a UK degree.” It also added that investor interest in the student accommodation sector remains strong, with up to £3.5 billion worth of investments expected in 2019.
SPH shares are up 6% since the announcement was made.
Acquisition growth on the cards?
Starhill Global REIT (SGX: P40U) has submitted a letter of intent to acquire the remaining 26% interest in Wisma Atria it does not already own from Isetan (SGX: I15). According to news reports, it is believed that the REIT is willing to pay more than S$290.7 million, the fair value of Isetan’s stake in Wisma Atria.
As of 30 June 2019, Starhill Global REIT had a gearing ratio of 36.1%, giving it a debt headroom of S$279.8 million before it reaches the 45% regulatory ceiling.
The REIT manager cautioned that there is no definitive agreement on the purchase of Isetan’s stake in Wisma and that they are still in the process of evaluating various prime assets.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Jeremy Chia does not own shares in any of the companies mentioned.