Stocks In Focus SG (Sembcorp Industries, Ascendas REIT, Mapletree Logistics Trust) – 22/04/14

• Sembcorp Industries unveiled plans to re-enter property development via its dormant property unit, Sembcorp Properties. The company has emphasised to place its focus on China due to surging demand for homes, while it expects the urban development segment to achieve a net profit in the three digit range by 2020, up from the $50 million that it contributed to Sembcorp Industries’ FY13 overall earnings.

• Ascendas Real Estate Investment Trust posted a 7.7 percent increase in gross revenue to $156.5 million for the quarter ended 31 March 2014, in light of rental income recognised from newly acquired properties, finance lease interest income received from a tenant and positive rental reversion. Income available for distribution for the quarter soared 21.9 percent to $83.9 million. The company has declared a distribution per unit of $0.0355.

• Mapletree Greater China Commercial Trust reported a 7.5 percent increase in gross revenue to $64.9 million compared to its pro-forma indications, for the quarter ended 31 March 2014. This was due to better overall performance from its two properties. Income available for distribution to unitholders for the quarter came in at $42.6 million, 73.2 percent above forecast. The company has declared a distribution per unit of $0.01587.

• Mapletree Logistics Trust registered a 5.7 percent gain in gross revenue to $80.1 million for the quarter ended 31 March 2014. This was mainly attributed to contributions from newly acquired properties, initial contribution from Mapletree Benoi Logistics Hub and positive rental reversions in Singapore and Hong Kong. Income available for distribution for the quarter expanded 10.1 percent to $46.3 million. The company has declared a distribution per unit of $0.0189.

• Chaswood Resources Holdings inked an area development agreement with Mega Village Food, which grants Mega Village with the exclusive rights to develop and operate 28 Teh Tarik Place restaurants in North Malaysia. Further, a binding letter of intent was also signed with Mega Village, where Mega Village will be granted the exclusive rights to further develop and operate 72 Teh Tarik Place restaurants in the Southern and Eastern Coastal regions of Malaysia by 2023.

• Rowsley secured building permit for its first residential development in Iskandar Malaysia, SKIES, forming a part of the planned integrated mixed-used development, Vantage Bay, which consists of a retail mall, hotel, serviced apartments and commercial offices. SKIES comprises of two 75-storey towers with a total of approximately 1,000 apartment units.

• Singapore Medical Group proposed the sale of its subsidiary, Singapore Medical Group (HK), for a sale consideration of $0.5 million. In view of market and operational challenges for the company, the company’s move represents an opportunity to exit an unprofitable investment. Subsequently, the company intends to concentrate its efforts on extending Singapore’s healthcare services into Southeast Asia.

• United Engineers proposed the sale of its stake in Chongqing Huaxin International Urban Development. The total sale consideration is Rmb42 million (approximately $8.7 million). The company views this as a strategic move of unlocking and realising value for its shareholders.

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