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PHILLIP SECURITIES |
UOB KAYHIAN |
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First REIT Earnings stability tempered by FX
SINGAPORE|REAL ESTATE (REIT) | 3Q25 UPDATE ▪ 3Q25/9M25 DPU of 0.52/1.65 Singapore cents (-10.3%/-7.3 YoY) was slightly below our estimates, forming 23%/73% of our FY25e forecast. The YoY decline in DPU was due to depreciation of the IDR and JPY against the SGD, partially offset by higher rental income in local currency terms.
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SIA Engineering (SIE SP) 1HFY26: Results In Line; Earnings Uplift From Supply Chain Improvement To Offset Gestation Cost Pressures
Highlights • 1HFY26 reported net profit (+21% yoy) was in line with expectations, at 49% of our full-year forecast. Excluding one-offs, core earnings rose 27.0% yoy. • Management highlighted the improvement in the spare part supply chain and expect this to continue into FY27; this supports SIAEC’s earnings outlook. • Upgrade SIAEC to BUY, with a higher target price of S$3.92 (previous: S$3.41), based on 23.3x 2027F P/B (+0.5SD above mean).
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UOB KAYHIAN |
CGS INTERNATIONAL |
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Lendlease Global Commercial REIT (LREIT SP) Expanding Singapore Footprint In Suburban Retail
Highlights • The acquisition of PLQ Mall is aligned with LREIT’s strategic focus on Singapore, which expands to 89% of its total assets. The exposure to defensive suburban retail also enlarges to 63%. • The acquisition enhances FY25 DPU by 2.5%, while maintaining LREIT’s aggregate leverage at a healthy 38.3%. • LREIT provides an attractive FY26 DPU yield of 6.0% (CICT: 4.7%, FCT: 5.3%, SGREIT: 6.6%). Maintain BUY. Target price: S$0.81.
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Parkway Life REIT Business as usual
■ 9M25 DPU of 11.56 Scts is in line, at 74% of our FY25F forecast. ■ End-9M25 gearing of 35.8% positions it well for growth opportunities, we believe. ■ Maintain Add rating, with an unchanged DDM-based TP of S$4.97.
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| MAYBANK KIM ENG | |
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ESR-LOGOS REIT (EREIT SP) Achieving steady state, Upgrade to BUY
Attractive yield EREIT reported 9M distributable income of SGD134.6m, +6.8% YoY. Growth was underpinned by mid-single digit organic NPI growth and contribution from strategic acquisitions. Portfolio occupancy was relatively stable on a same-store basis while high single-digit positive reversion continued. Gearing continues to inch up while cost of debt was lower. We update our model factoring in portfolio changes and unit consolidation and raise our TP to SGD3.00 and upgrade stock to BUY on back of high yield.
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