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UOB KAYHIAN |
UOB KAYHIAN |
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Mapletree Pan Asia Commercial Trust (MPACT SP) Green Shoots In Hong Kong And Japan
Highlights • Festival Walk recorded the second consecutive quarter of healthy tenant sales growth at 4% yoy with sustained spending on luxury goods in 1QFY27. We expect the negative reversions to gradually moderate due to healthy retail sales boosted by positive wealth effect. • Strong demand within central Tokyo has spilled over to the Makuhari submarket. MPACT has initiated discussions with several potential new tenants, including a potential replacement tenant for the entire FMB .• Singapore remains MPACT's core earnings anchor and contributed 68% of portfolio NPI in 1QFY27. Maintain BUY. Target price: S$1.71.
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Renewable Energy It Is Hot, It Is Hazy, It Is Expensive, And So, Solar Gets A Boost
Highlights • The government introduced the CRESS Acceleration Package with a lower SAC of 14 sen/kWh for firm output. This exceeded our earlier expectation of 15 sen/kwh. More importantly, this CRESS Acceleration Package mandates a 10-year PPA with COD no later than 31 Dec 28 • To meet the timeline, we expect a slew of positive CRESS announcements in the next three months. This represents a positive catalyst for Solarvest, Pekat and Northern Solar, which underpins strong earnings visibility given the doubling of the orderbook and layering of the low-margin EPCC business with higher-margin asset ownership. • Maintain OVERWEIGHT. Our sector top picks are Solarvest, Pekat Group and Northern Solar.
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| PHILLIP SECURITIES | DBS GROUP RESEARCH |
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Singapore REITs Monthly Not all doom and gloom after rate hike
▪ The S-REITs Index declined 4% in August, reversing the 3% gain in July. NTT DC REIT (NTTDCR SP, non-rated) was the best performer, rising 3.8% (-6.4% YTD), following a positive 1Q26/27 business update, with DI 10.6% above its IPO projection. Daiwa House Logistics Trust (DHLT SP, non-rated) was the worst performer, declining 17.5% (-29.2% YTD), amid concerns over JPY weakness against SGD and vacancy risk. The overseas retail REIT sub-sector was the best-performing sub-sector, declining 0.8%, while overseas commercial REITs were the weakest, declining 6.2%.
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Reset begins, but the heavy lifting remains
We currently have a BUY recommendation with a TP of SGD1.70
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| PHILLIP SECURITIES | CGS INTERNATIONAL |
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SASSEUR REIT Healthy traffic ahead of anniversary sales
• We visited the outlet malls in Chongqing Liangjiang and Chongqing Bishan before SASSR’s Anniversary Sales. Both Chongqing outlets continued to deliver steady sales growth for 2Q26 (Liangjiang +3.7% YoY, Bishan +3.5% YoY). 1H26 Portfolio Sales reached record 1H high since listing (+7.4%YoY).
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Food Empire Holdings Ltd Russia takes control of Nestle's assets
■ Russia has placed the assets of Nestle under temporary administration, a move that could eventually lead to transfer of control to Russian companies. ■ Food Empire (FEH) derived 32.7% and 33.3% of sales and net profit, respectively, from Russia in 1H26. ■ We expect a negative share price reaction but note potential for FEH to increase its market share in Russia if Nestle's operations are disrupted. ■ FEH could face a similar but lower risk of being put under temporary administration as Singapore continues to keep diplomacy with Russia open.
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