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PHILLIP SECURITIES |
CGS CIMB |
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Singapore REITs Monthly More to benefit from lower financing costs
▪ The S-REITs Index rose 1.7% in September 2025, extending August’s 2.3% gain to bring YTD returns to 9.2%. The top performer for the month was Centurion Accommodation REIT (CAREIT SP, non-rated), jumping 18.2% from its 25 September 2025 IPO price of S$0.88 per unit. The worst performer was Acrophyte Hospitality Trust (ARAUS SP, nonrated), down 14.8%. Among the sub-sectors, hospitality was the strongest, rising 3.9%, while the overseas retail sector was the worst, falling 1.9%.
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Genting Singapore Reinventing RWS1.5 offerings will take time
■ We estimate GENS to report 3Q25F adj. EBITDA of S$192m (+17.1% yoy, +2.2% qoq) with muted read-through from peer MBS’s 3Q25 results. ■ We believe higher operating costs with new attractions opening should continue to impact GENS EBITDA margins in the near term. ■ We cut our FY25F-27F estimates and rollover our valuation to FY27F, translating to a lower TP of S$0.785 (7.2x FY27F EV/EBITDA). ■ Reiterate Add with visibility to earnings recovery in FY26F; attractive valuations at 5.2x 12m-forward EV/EBITDA, and dividend yield of c.5.5%.
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CGS CIMB |
UOB KAYHIAN |
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Frasers Centrepoint Trust Steady ship
■ 2H/FY25 DPU of 6.059/12.113 Scts was in line at 49.8%/99.6% of our FY25 forecasts. ■ FCT’s performance was boosted by robust positive rental reversion and lower cost of debt in FY25. ■ Reiterate our Add rating with an unchanged DDM-based TP of S$2.86.
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SembCorp Industries (SCI SP) Finding Its Current Again Highlights
• Short-term energy contracts still at the top of investors’ minds but at least earnings visibility into 2026 a lot clearer, in our view. • Medium- to longer-term growth intact with energy demand coming from data centres and high-technology manufacturing. • Maintain BUY with PE-based target price of S$7.90.
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| MAYBANK KIM ENG | LIM & TAN |
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Marco Polo Marine (MPM SP) A Great Few Years Ahead
Maintain BUY, raising TP to SGD0.11 from SGD0.09 MPM has partnered with Norway’s Salt Ship Design (unlisted) to construct its new CSOV Plus vessel at its Batam shipyard, starting in 2Q26, with delivery planned for 4Q28. MPM will also buy 2 AHTS vessels worth USD34m, which will increase its fleet to 21 from 19 by end-FY26. We expect these new vessels to significantly contribute to MPM’s PATMI from FY27-30 when ready. The valuations of peers in the SMID space have rerated higher due to the EQDP programme. We maintain BUY on MPM with a higher TP of SGD0.11, based on a higher 13.5x FY26E P/E (from 11x).
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Suntec REIT ($1.36, unchanged) announced improved distributable income of $52.4 million for the quarter 1 July to 30 September 2025 (“3Q 25”), 13.4% higher than the period ended 30 September 2024 (“3Q 24”). Distribution per unit (“DPU”) to unitholders was 1.778 cents or 12.5% higher year-on-year. Suntec REIT’s market cap stands at S$4bln and currently trades at 24x forward PE and 0.7x PB, with a dividend yield of 5.2%. Consensus target price stands at S$1.30, representing 4.4% downside from current share price. We maintain our HOLD recommendation on Suntec REIT given its decent yield, but fair valuations versus consensus target price. Growth is limited but its decent yield will provide support. |
