The Weekly Nibble: Best Dividend Shares
- Original Post from The Motley Fool Sg

Here are some of the most popular articles that have appeared on The Motley Fool Singapore’s website for the week.


Singapore’s Top 5 Dividend Shares Among the World’s Best


Do you like income stocks?


In this article, I looked at the top five Singapore-listed companies that are part of the FTSE All-World High Dividend Yield Index sporting the highest dividend yields. The FTSE All-World High Dividend Yield Index contains 1,389 globally-listed shares that have a higher-than-average dividend yield. The index does not include real estate investment trusts (REITs) and stocks that are forecast to pay no dividend over the next 12 months.


Companies discussed in the article include Hutchison Port Holdings Trust (SGX: NS8U), StarHub Ltd (SGX: CC3), Singapore Telecommunications Limited (SGX: Z74), M1 Ltd (SGX: B2F) and Venture Corporation Ltd (SGX: V03).


2 Singapore REITs I Am Watching This Week


My Foolish colleague, Jeremy Chia, touched on why he kept a lookout for two REITs – Keppel DC REIT (SGX: AJBU) and CapitaLand Mall Trust (SGX: C38U) – when they released their earnings during the week.


Keppel DC REIT released its earnings on 22 January while CapitaLand Mall Trust announced its financial results on 23 January.


3 Singapore Blue Chips That Have More Than Doubled Their Profits In The Last Decade


In this piece, Lawrence Nga explored a total of three Straits Times Index (SGX: ^STI) stocks that have more than doubled their profits in the last 10 years. Do jump into the article to know what the companies are.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.


$STI(^STI.IN) $Keppel DC Reit(AJBU.SI) $M1(B2F.SI) $CapitaMall Trust(C38U.SI) $StarHub(CC3.SI) $HPH Trust USD(NS8U.SI) $Venture(V03.SI) $SingTel(Z74.SI)

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The Week Ahead: Singtel, SATS And Singapore Airlines
- Original Post from The Motley Fool Sg

So, now we know. US importers that bring Chinese-made goods into America must pay a tariff of 25% on some US$200 billion worth of items,rather than just 10%. China is unlikely to take this lying down. It has threatened to retaliate. We wait with bated breath.


Staying in America, retail sales for April could provide some clues to the impact of higher import prices on consumer spending. They are expected to show a sharp drop in growth from the previous month.


But retail sales growth in China in April could be almost unchanged from the previous month at 8.7%. Malaysia will report retail sales for March. It is expected to have grown 7.7% from a year ago, which would be slower than the 8.5% in February. Malaysia is also expected to say that the economy grew at an annualised rate of 4.5% in the first quarter.


The annual rate of inflation in the eurozone could have moderated to just 0.7% in April. Meanwhile, the second estimate of economic growth is expected to confirm that the economic bloc expanded 1.2%.


India, which is at the tail end of a general election, is expected to say that the rate of inflation for April was marginally higher at 2.97%. In March, the retail prices inflation rate climbed to a five-month high of 2.86%.


And just as India’s election draws to a close, Australia will hold its federal election on 18 May. It is essentially a battle between the incumbent Liberal party led by Scott Morrison and the centre left Labor Party, headed by former union leader Bill Shorten.


On the earnings front, investors will be hoping that Singtel (SGZ: Z74) can break five straight quarters of falling profits. In February, the telecom operator said net profits fell 14.2% in the third quarter.


In February, Singapore Airlines (SGX: C6L) reported a 27% drop in third-quarter income. But group revenue rose 7%, despite flat average ticket prices.


Meanwhile, SATS (SGX: S58) said profit rose 3.5% in the third quarter thanks to improvements in both food solutions and gateway services. It said it plans to build new central kitchens in China to supply fast casual restaurants in key cities.


There are also results from Golden Agri-Resources (SGX: E5H), ComfortDelGro (SGX: C52), Singapore Technologies Engineering (SGX: S63). City Developments (SGX: C09) and Sembcorp Industries (SGX: U96) are also pencilled in for numbers.


The Motley Fool’s purpose is to help the world invest, better. Click here nowfor your FREE subscription to Take Stock - Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock - Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.



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Starhub Ltd’s Q1 2019 Earnings Update: Revenue Grew but Profit Fell
- Original Post from The Motley Fool Sg

Last Friday, StarHub Ltd(SGX: CC3) released its 2019 first-quarter earnings update. As a quick introduction, StarHub is one of the three companies in the telecommunication industry.


Here, let’s look at 10 important things from the earnings update.



  1. Revenue for the quarter was up 6% year-on-year to S$597 million. Yet, service revenue declined 1% year-on-year to S$444 million.

  2. Operating profit was down 14% year-on-year to S$72 million.

  3. Quarterly earnings before interest tax depreciation and amortisation (EBITDA) improved 5% year-on-year to S$162 million.

  4. Service segment’s EBITDA margin for the quarter improved from 31.7% last year to 33.7% this quarter.

  5. Profit attributable to investors fell by 14% year-on-year to S$54.0 million.

  6. Free cash flow grew from S$10 million a year ago to S$21 million this quarter.

  7. As of 31 March 2019, net debt stood at S$857 million and the debt-to-EBITDA ratio was 1.49. Net debt and debt-to-EBITDA ratio were S$862 million and 1.52, respectively, as of 31 December 2018.

  8. For the quarter, revenue from sales of equipment and Enterprise business were up by 33% and 14%, respectively, as compared to the same period last year. On the other hand, revenue for Mobile and Pay TV were down by 5% and 12%, respectively, as compared to last year.

  9. Starhub declared a dividend per share of 2.25 cents in the quarter.

  10. The telco also gave the following outlook guidance for 2019:


“Based on the current outlook, we expect the Group’s 2019 service revenue to be stable to a decline of 2% YoY. Group service EBITDA margin is expected to be between 30% to 32% (after SFRS(I) 16 adoption).


In 2019, CAPEX commitment, excluding spectrum payment of S$282.0 million, is expected to be between 11% to 12% of total revenue. The Group intends to pay-out at least 80% of net profit attributable to shareholders (adjusted for one off, non-recurring items), as dividend. For FY2019, the Group intends to pay a dividend of at least 9 cents per ordinary share, at a rate of 2.25 cents per quarter. Any payment above 9 cents would occur in the last quarterly payment.”


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebook to keep up-to-date with our latest news and articles.


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CapitaLand Mall Trust’s 2019 Q1 Earnings: Increase in DPU
- Original Post from The Motley Fool Sg

CapitaLand Mall Trust (SGX: C38U) is a retailreal estate investment trust (REIT) that owns 15 shopping malls in Singapore, including Bugis Junction, Westgate, and Plaza Singapura.


This morning, CapitaLand Mall Trust announced its financial results for its first quarter ended 31 March 2019.


Financial highlights


Gross revenue for the reporting quarter increased by 10% year-on-year to S$192.7 million. The improvement was mostly due to the acquisition of the remaining 70% balance of Westgate in November 2018. Westgate contributed S$19.1 million to gross revenue. On a like-for-like basis (which also excludes Westgate), gross revenue inched up by 1.2% year-on-year, which is still commendable.


Meanwhile, net property income grew 11.5% to S$140.1 million, and distributable income to unitholders climbed 7.4% to S$106.3 million. Consequently, distribution per unit (DPU) went up by 3.6% to 2.88 Singapore cents.


As of 31 March 2019, CapitaLand Mall Trust had a net asset value (NAV) per unit of S$2.04 and a gearing ratio of 34.4%. In comparison, at the end of 2018, the retail REIT had S$2.02 in NAV per unit and 34.2% in gearing.


Operational highlights


The following slide summarises CapitaLand Mall Trust’s operational performance for the first quarter of 2019:Source: CapitaLand Mall Trust FY 2018 earnings presentation


CapitaLand Mall Trust’s portfolio occupancy rate stood at 98.8%, at the end of March 2019, down from 99.2% at the end of last year. Shopper traffic rose 2% year-on-year, but tenants’ sales per square foot inched down by 0.4%.


Looking ahead


Funan, which has been undergoing redevelopment since July 2016, is slated to open in the middle of this year. The mall is around 90% leased and is expected to contribute progressively to CapitaLand Mall Trust’s earnings from the second half of 2019.


Tony Tan, chief executive of CapitaLand Mall Trust’s manager, added:


“Amidst slowing down of the global and Singapore economies, we remain cautious in our outlook. The coming on stream of new retail space of about 1 million square feet (excluding Funan) in Singapore this year is expected to intensify competition among shopping malls. We will stay proactive in our asset and investment management, and continually evaluate opportunities to grow and enhance CMT’s portfolio. These include potential enhancement initiatives for CMT’s older assets, as well as acquisition and redevelopment opportunities.”


At CapitaLand Mall Trust’s current unit price of S$2.34, it has a price-to-book ratio of 1.15 and a distribution yield of 5.0%.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.


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The Week Ahead: CMT, SGX and Venture Corporation
- Original Post from The Motley Fool Sg

The Singapore earnings season will step up a notch with seven Straits Times Index (SGX: ^STI) pencilled in for results.


CapitaLand Mall Trust (SGX:C38U) increased its fourth-quarter distribution by 3.1% in January. The owner of 15 Singapore shopping malls said it was aware of the slowdown in the global economy and uncertainty in the interest-rate environment.


Both revenue and bottom-line profit increased in the second-quarter at Singapore Exchange (SGX:S68). They were driven by a jump in demand for derivatives. It was the second consecutive quarter of record performance for the derivatives business.


Venture Corporation (SGX: V03) posted a slump in fourth-quarter net profit and a drop in revenue. But it said that there has been increased increased interest from businesses looking to relocate production to South-east Asia.


Updates are also expected from Dairy Farm International (SGX: D05), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07) and Hutchison Port Holdings (SGX: NS8U).


On the economic front, growth in the US economy could have slowed from 2.2% in the fourth quarter of 2018 to 2% in the first three months of 2019. The 4% growth rate once touted by the Trump administration now seems like an ellusive dream.


Australian inflation could have moderated to 1.5% in the first quarter from 1.8% last time. That could give the Reserve Bank of Australia some wiggle room to cut rates if needed.


Speaking of interest rates, Bank Indonesia should keep its benchmark reverse repo rate unchanged at 6%. The bank said the rate should maintain the attractiveness of the domestic market for foreign investors.


Elsewhere, the Bank of Japan is expected to keep interest rates on hold at minus 0.1%. The bank is also expected to continue buying Japanese Government Bonds, exchange-traded funds and Japan REITs.


And finally, Singapore’s core consumer prices inflation rate could have increased to 1.7% in March from 1.5% a month earlier.


The Motley Fool’s purpose is to help the world invest, better. Click here nowfor your FREE subscription to Take Stock — Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock — Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


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5 Takeaways from Keppel DC REIT’s 2019 First-Quarter Earnings
- Original Post from The Motley Fool Sg

Keppel DC REIT (SGX: AJBU) released its 2019 first-quarter earnings update yesterday evening. The REIT currently owns 15 data centres across eight countries that are worth a total of S$2 billion as of 31 March 2019.


Here are eight key takeaways from Keppel DC REIT’s latest earnings update:


1. Gross revenue for 2019’s first-quarter continued to show good growth, rising by 26.4% year on year to S$48.0 million. This was due to contributions from the acquisitions of Maincubes Data Centre in Offenbach am Main, Germany, as well as Keppel DC Singapore 5, in 2018. Property expenses rose by 22.5%, resulting in net property income registering growth of 26.8% to S$43.2 million. Distribution income and distribution per unit (DPU) for the reporting quarter rose by 30% and 6.7%, respectively, to S$27.1 million and 1.92 Singapore cents. Keppel DC REIT’s unit price closed at S$1.49 on 15 April 2019; at that price, the REIT has an annualised distribution yield of 5.2%.


2. Keppel DC REIT’s property portfolio is worth S$2 billion at the end of 2019’s first-quarter, of which the bulk, 51%, is in Singapore. Total exposure to Asia is 67.4%, while the remaining 32.6% is in Europe (see the portfolio breakdown below). The REIT’s occupancy rate rose slightly from 93.1% in the previous sequential quarter to 93.2%, but the weighted average lease expiry (WALE) declined from 8.3 years to 8.0 years.




Source: Keppel DC REIT 2019 first-quarter earnings presentation


3. The REIT is performing enhancement works to three of its assets at the moment:


a) At Keppel DC Singapore 3, retrofitting works are under way to cater for a client’s expansion, and completion is expected in mid-2019.

b) At Keppel DC Dublin 1, asset enhancement works are ongoing to improve energy efficiency, and completion is expected in 2020.

c) At Keppel DC Dublin 2, the REIT is carrying out power upgrade and fit-out works for client expansion, and completion is expected in the second half of 2019.


4. Aggregate leverage for the REIT has inched up slightly from 30.8% in the fourth quarter of 2018 to 32.5% in the reporting quarter, due to higher gross borrowings. This still leaves considerable room for the REIT to borrow more for acquisitions as its leverage is below the regulatory gearing-ceiling of 45%. During 2019’s first-quarter, Keppel DC REIT issued €50 million worth of 7-year floating rate notes that will come due in 2026. This debt-issue lowered Keppel DC REIT’s cost of debt from 1.9% in the previous sequential quarter to 1.7%, and increased the average debt tenor from 3 years to 3.3 years. The REIT’s interest coverage ratio also improved from 11.4 times to 12.9 times.


5. Keppel DC REIT shared that total mobile data traffic is expected to increase by 31% annually to reach 136 exabytes per month by the end of 2024. Mordor Intelligence also expects the cloud gaming market to grow at 15% per year between 2018 and 2023. These two trends alone bode well for the demand for data centres to grow steadily over the medium term at least, which will underpin growth for the REIT.


Stop worrying about the uncertain REITs market with our new Complete Guide To Buying The Best Singapore REITs. We give you 3 quick ways to easily value your REITs so you save tons of research time. Value your REITs today so you know exactly when to buy, sell or hold. Simply enter your email here and we will rush the 42-page PDF immediately to your inbox...for FREE!


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The Motley Fool Singapore contributor Royston Yang contributed to this article. Royston owns shares in Keppel DC REIT.


The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore writer Chong Ser Jing does not own shares in any of the companies mentioned.


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