Singapore Stocks News Of The Week: AIMS APAC REIT, Singapore Exchange, F&N, And More

Here’s a selection of Singapore-listed companies that released noteworthy announcements this week (in chronological order).

AIMS APAC REIT Extends Lease With Its Largest Tenant

Industrial real estate investment trust (REIT), AIMS APAC REIT (SGX: O5RU), and its joint venture partner, Stockland, have inked a lease renewal agreement with its largest tenant, Optus Administration Pty Limited (Optus), for another 12 years at the Optus Centre property in Macquarie Park, New South Wales, Australia. Optus is a wholly-owned subsidiary of Singapore Telecommunications Limited (SGX: Z74) (Singtel).

The new lease will start from 1 July 2021 after completion of an asset enhancement initiative (AEI) to cater to Optus’ latest requirements.

The 12-year master lease has an annual rental escalation of 3.25% on face rent, and two, five-year options to extend the contract after the initial lease term. The average net property income over the 12-year lease term, after rental escalation, is estimated to be around A$36.5 million.

AIMS APAC REIT has a 49% stake in Optus Centre while Stockland owns the remaining 51%.

Singapore Exchange Reveals 2019 List Of SGX Fast Track Companies

Singapore Exchange Limited‘s (SGX: S68) regulatory arm, Singapore Exchange Regulation (SGX RegCo), released a list of new companies that are part of the SGX Fast Track list to make a total of 95. Those companies enjoy prioritised response on selected corporate action submissions to SGX RegCo.

The Fast Track initiative recognises companies that have high corporate governance standards and have maintained a good compliance track record. Qualified companies stay in the Fast Track programme for two years.

Most of the companies on the programme are mainboard-listed companies.

Companies from SGX’s second board, the Catalist board, include Asian Healthcare Specialists Ltd (SGX: 1J3), Union Gas Holdings Ltd (SGX: 1F2) and United Global Limited (SGX: 43P).

Fraser and Neave Increases Stake In Emerald Brewery Myanmar 

Fraser and Neave Limited‘s (SGX: F99) wholly-owned subsidiary, F&N Investments Pte Ltd, has increased its stake in a joint venture company, Emerald Brewery Myanmar Limited, by subscribing for an additional 4.69 million new shares for US$4.69 million.

With that, F&N now owns 79.88% of Emerald Brewery while Sun Ace Corporation Company Limited (Sun Ace) and Than Lwin Aye Yar Industrial Production & Construction Co Ltd (TLAY) own 20% and 0.12% of the brewer respectively. Sun Ace increased its stake in Emerald Brewery as well while TLAY did not subscribe for additional shares.

F&N returned to Myanmar’s beer market with the start of Emerald Brewery’s commercial production on 1 October 2019 to brew Chang Lager Beer. F&N previously exited the country when it sold a 55% stake in Myanmar Brewery for US$560 million in 2015. 

In the middle of this month, F&N announced its financial results for the full year ended 30 September 2019 (FY2019).

It said that FY2019 revenue grew 3.7% year-on-year to S$1.90 billion due to higher sales from its food and beverage division. Meanwhile, net profit surged 23.5% to S$152.6 million, and the total dividend per share rose 22% to 5.5 Singapore cents, up from 4.5 Singapore cents a year back.

Frasers Logistics & Industrial Trust And Frasers Commercial Trust To Merge?

As of the time of writing on Thursday, Frasers Logistics & Industrial Trust (SGX: BUOU) and Frasers Commercial Trust (SGX: ND8U) are both halted from trading.

A report by The Business Times stated that there’s a possibility of both REITs merging. It would be interesting to watch what comes out of the trading halt…

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