S-REITs - Week 28 - 2024

( YTD: +2.05% | 5D: +9.94%)

11 July -  Keppel DC REIT enters Japan with acquisition of a hyperscaler data centre in Tokyo

• Strategic expansion into Japan, the second largest data centre market in Asia
  
  
• DPU-accretive acquisition of Tokyo Data Centre 1; with opportunity for positive rental reversion
  
  
• Assets under management will increase to $3.8 billion, portfolio will enjoy further income diversification and a higher occupancy of 98.2% post-acquisition

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( YTD: -21.84% | 5D: +6.25%)

11 July - Responses to Substantial and Relevant Questions from Unitholders for the Annual General Meeting on 17 July 2024

• The queries posted was mainly on China properties in the portfolio
  

Question 1

On Page 49 of the annual report, under 'Lease Expiry Profile - SUA vs. MTB Breakdown (By NLA)', it was noted that 29.6% of leases are due for renewal in the coming financial year 2024/25, which is a rather significant portion. Notably, 13.2% of these leases are in China.

(i) Have lease negotiations started, and if so, what is the current progress?

(ii) Considering the current challenges in China's logistics sector and the fact that 13.2% of leases there will expire in the coming financial year, what is the likelihood of tenants renewing their leases? Additionally, does the management anticipate further declines in rental reversion?

Question 2

Will MLT be affected by a sharp drop in occupancy in China, given the challenges in the logistics and warehouse business there?

Question 3

For China-based assets, what types of tenants do we have? E.g., e-commerce, industrial, retail, etc. etc. Does MLT have some of the transnational e-commerce players as tenants? What would drive the recovery of the logistics assets in China?

Question 4

How about assets in Hong Kong? Is the market situation different or similar to China (mainland)?

Question 5

How do macro drivers such as supply chain reconstitution and manufacturing relocation impact MLT’s business and investment decisions? What are we doing to soften the impact and benefit from the changes?

Read the reply here

( YTD: -40.83% | 5D: +15.18%)

10 July - Completion of Divestment of One Town Center In Boca Raton, Florida

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12 July - Announcement In Relation To PRIME's US$600 Million Credit Facilities

The Manager is in the final legal documentation stage for the refinancing of the Facility and one of the four lenders in the syndicate has requested additional time to finalise their internal documentation for the refinancing.

In this regard, the administrative agent (acting on behalf of all the lenders) has recommended, and the Manager and all the lenders have agreed to amend the maturity date of the current Facility to 19 August 2024 to facilitate this request.

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