UOL Group (UOL)

REITs have had a good run, yield compression may have come to an end

(Nov 18): Yields on 10-year Singapore Government Securities have been rising, albeit gently from a low base (see Chart 1). Similarly, yields on 10-year US Treasuries are also rising, from a low of 1.4% in September to 1.945% as at Nov 11 (see Chart 2). On Oct 30, the US Federal Reserve, through a statement by the Federal Open Market Committee, announced a 25-basis-point cut in the Fed funds rate to 1.5% to 1.75%.


Singapore economy seen softening; UOL, UIC gain on Marina Square deal

SINGAPORE (Apr 22): The latest economic data released this past week paints a softer outlook. Non-oil domestic exports (NODX) data for March released on April 17 indicates Singapore growth contracted 11.7% y-o-y, a sharp swing from the growth of 4.8% y-o-y in February. This is the biggest monthly fall since October 2016. 


Property sector kept at 'overweight' by CGS-CIMB as URA unveils 2019 draft master plan

SINGAPORE (Mar 28): CGS-CIMB Securities is maintaining its “overweight” on property developers given higher possibility of unlocking value from older commercial assets.

This follows the release of URA's Draft Master Plan 2019 on Wednesday which envisions a more sustainable and liveable city state of the future.

Key strategies in the draft include broadening developments across the eastern, western and northern parts of the island to tap global gateway connections as well as increasing capacity at Paya Lebar Air Base and Greater Southern Waterfront.

Sales momentum to turn cold; en-bloc activity to wane as developers rethink strategies

SINGAPORE (July 6): After warning of “market exuberance” in the property market for the past six months, the Singapore government has finally raised Additional Buyer’s Stamp Duty (ABSD) rates by 5 ppts and tightened Loan-to-Value (LTV) limits by 5 ppts.

In terms of demand, sales momentum is expected to turn cold. According to a Friday report by DBS Group Research, the combined impact of these measures raises the cost of ownership on an assumed $1.5 million property purchase by $75,000 for first-time buyer and $150,000 for investor.

CGS-CIMB 'overweight' on developers as latest GLS holds private housing supply steady

SINGAPORE (June 28): Under the latest 2H18 land sale programme, the Singapore government has released land sites for a total of 8,040 residential units -- 2,775 confirmed and 5,335 reserve, 930 hotel rooms and 124,200 sqm of commercial space.

In all, seven sites were carried over from the 1H18 programme and seven new parcels were introduced.

Opportunity to buy Singapore developers opens up on share price-fundamentals divergence

SINGAPORE (June 27): The divergence between the share price performances of Singapore developers and their actual business fundamentals has presented buying opportunities for investors, says OCBC Investment Research, who continues to hold a positive view on the outlook of the local property market.

UIC's 1Q earnings up 1% at $60.2 mil

SINGAPORE (Apr 27): UIC, the property group 49.8% owned by UOL, reported a 1% rise first quarter earnings to $60.2 million from $59.4 million on lower cost of sales and lower other losses.

Revenue fell 37% to $165.7 million from a restated $264.5 million a year ago mainly due to lower sales recognition from trading properties.

Revenue recognised from the sales of trading properties at $20.8 million was lower by 84% as the group's development projects were completed by October 2017 and substantially sold in 2017.

UOL kept at ‘buy’ by Maybank on doubling of sales pipeline

SINGAPORE (Apr 27): Maybank is maintaining UOL at “buy” after a consortium led by the group emerged as the sole bidder for a city fringe site at a government land tender.

With the latest deal, the developer has effectively doubled its saleable resource that could yield 1,125 housing units, says Maybank. The $1.035 billion price tag translates into a reasonable land rate of $1,138 psf ppr, based on a maximum GFA of 84,551 sqm.

The price paid is significantly lower than $1,515 psf that CapitaLand paid for the redevelopment site at Pearl Bank Apartments.

Property sector kept at 'overweight' by CIMB with UOL and CityDev as top picks

SINGAPORE (Apr 3): CIMB is maintain the property and development sector at "overweight" with UOL and City Developments as top picks after q-o-q private homes price hike came in strongest in nearly eight years.

"We maintain our 2018 projections of 5% price appreciation and volume demand to reach 11,000-12,000 units," says analyst Lock Mun Yee who estimates Singapore-listed property stocks are currently trading at a 35% discount to RNAV.

Developers turning more cautious when replenishing landbanks, says DBS

SINGAPORE (Feb 19): DBS says developers are turning more choosy in adding to their Singapore landbank.

They are also becoming more cautious in their pricing strategy after more land sites were awarded at reserve price levels rather than at a premium.

Property sales were off to a good start in January as total transactions -- primary and secondary markets --  doubled compared to a year ago, says lead analyst Derek Tan in a Monday report.

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