Broker: Lim & Tan Securities
Date of Report: 31 July 2025

Singapore Market Review: Earnings, Dividends, and Key Institutional Moves – July 2025

Market Overview: Global Indices and Commodities Snapshot

The Singapore market remained resilient despite global headwinds. As of the latest close, the FSSTI Index stood at 4,219.4, reflecting a moderate 6.4% month-to-date rise and a robust 11.4% gain year-to-date. Comparatively, other major indices such as the Dow Jones, S&P 500, and NASDAQ posted positive YTD performances, while Hong Kong’s HSI surged 25.5% YTD, outpacing regional peers.

In commodities, gold prices edged up by 0.3% to 3,283.5, boasting a 25.1% YTD gain, while crude oil rebounded 1.1% to 70.0, narrowing its YTD loss to -2.4%. The Baltic Dry Index soared 41.6% month-to-date and an impressive 111.5% YTD, highlighting the recovery in global shipping demand.

Key Interest Rates and Market Sentiment

• 3-Month SGD SORA: 1.8 (down 0.2% daily, -10.2% MTD, -39.8% YTD)
• Singapore 10-Year Bond Yield: 2.1% (down 1.0% daily, -4.8% MTD, -26.9% YTD)
• US 10-Year Bond Yield: 4.4% (down 0.1% daily, up 3.2% MTD, -4.5% YTD)

US equities closed mixed following the Federal Reserve’s decision to hold rates steady, which left some investors disappointed and contributed to subdued trading.

CDL Hospitality Trust: Navigating a Challenging Hospitality Landscape

CDL Hospitality Trust (\$0.825, down 2.5 cents) faced a 1.8% year-on-year decline in gross revenue to S\$125.1 million for 1H 2025. This was largely due to softer performances across most portfolio markets, with the UK, Japan, and Australia being notable exceptions. The UK portfolio’s net property income (NPI) was buoyed by new inorganic contributions, including The Castings, Benson Yard, and Hotel Indigo Exeter.

• NPI fell 11.9% yoy to S\$58.6 million, with W Hotel’s ongoing renovations accounting for S\$3.2 million of the S\$7.9 million decline.
• Interest expense rose 4.3% (S\$1.0 million) due to new UK asset borrowings and post-development expensing for the UK BTR property.
• Excluding new UK assets, interest costs dropped 8.0% yoy, reflecting easing rates and active interest rate management.
• Total distribution to Stapled Securityholders for 1H 2025 was S\$25.1 million, and DPS was 1.98 cents (down 21.1% yoy).
• Singapore Hotels segment saw a 14.2% yoy RevPAR decline, attributed to a robust prior-year base and subdued corporate demand.
• Visitor arrivals grew a modest 1.9% to 8.3 million in 1H 2025, insufficient to offset softer market conditions and increased room supply.
• W Hotel renovations expected to complete by early 2026, with phased works to minimize disruptions.
• Claymore Connect mall’s NPI improved 4.6% yoy, with occupancy at 96.9% as of 30 June 2025.

Despite these challenges, Singapore’s tourism fundamentals remain strong, underpinned by infrastructure and attraction investments, a vibrant MICE pipeline, and new leisure offerings such as the Singapore Oceanarium and Minion Land at Universal Studios. The expansion of Marina Bay Cruise Centre is set to further boost connectivity.

Valuation: Market cap stands at S\$1.0 billion, trading at 26.6x forward PE and 0.7x PB, with a 4.8% dividend yield. The consensus target price of S\$0.82 suggests limited upside. The recommendation is to HOLD given the current valuation and outlook.

First REIT: Resilience Amid Currency Headwinds and Strategic Review

First REIT (S\$0.27, down 1 cent) reported a DPU of 1.13 Singapore cents for 1H 2025, down from 1.20 Singapore cents a year ago. The 2Q25 DPU was 0.55 Singapore cents, a 5.2% decline quarter-on-quarter. The Indonesian Rupiah’s depreciation against the Singapore Dollar moderated distributable income, even as Indonesian properties achieved a 5.5% rental income increase in local currency terms.

• 1H 2025 Rental and Other Income: S\$50.5 million (-2.9% yoy)
• Indonesia: +5.5% rental income (local currency); Singapore: +2.0%; Japan: stable
• Property operating expenses: S\$1.5 million (-S\$0.2 million yoy)
• Net Property and Other Income: S\$48.9 million (-2.7% yoy)
• Finance costs: S\$10.9 million (down S\$0.4 million due to easing rates)
• Realised exchange losses: S\$1.7 million (mainly from Indonesian remittances)
• Distributable Amount: S\$23.8 million (-4.8% yoy)
• Net Asset Value per unit: 26.75 Singapore cents (down 6.5% from end-2024)

First REIT’s gearing ratio rose to 41.2%, with interest coverage at 3.7x and cost of debt at 4.8%. The trust has no refinancing needs until May 2026 and has adopted hedging strategies to manage currency and interest rate risks. As of 30 June 2025, outstanding rent from PT Metropolis Propertindo Utama totalled S\$7.0 million.

A strategic review remains ongoing, with the aim of delivering long-term value for unitholders. Macroeconomic volatility, currency depreciation (notably the IDR and JPY), and regional trade tensions remain key risks.

Valuation: Market cap is S\$566 million, trading at 1.0x PB and an 8.3% dividend yield. Consensus target price is S\$0.30 (11% upside). The recommendation is HOLD, given fair valuations, ongoing DPU pressure from currency translation, and the potential catalyst of a strategic review or asset sale.

Other Market Highlights: Dividend Leaders, Value Picks, and Fund Flows

Share Transactions and Insider Activity

Recent weeks saw notable acquisitions and disposals among key Singapore-listed companies:

Share Buybacks: Corporate Support Remains Strong

Institutional and Retail Fund Flows: Sector Dynamics and Key Movers

The week of 21 July 2025 saw institutional investors as net buyers (+S\$335.4 million), with retail investors net selling (-S\$159.6 million). Key institutional net buys included DBS, Yangzijiang Shipbuilding, SIA, City Developments, ComfortDelGro, Keppel, and ST Engineering.

Retail flows saw OCBC, Singtel, SingPost, NTT DC REIT, and Sembcorp Industries as top buys, while DBS, SIA, City Developments, Seatrium, and ComfortDelGro experienced retail selling.

Sectoral Fund Flows: Institutional and Retail Trends

Institutional investors showed strong buying in Financial Services (+178.5m), Industrials (+194.2m), and Consumer Cyclicals (+26.5m), while REITs (-45.2m), Telcos (-55.8m), and Utilities (-5.8m) saw net selling.

Retail investors were net sellers in Financial Services (-42.2m), Industrials (-136.0m), and Consumer Cyclicals (-22.4m), but were net buyers in Consumer Non-Cyclicals (+14.8m), REITs (+31.7m), and Utilities (+13.1m).

STI Constituents: Weekly Fund Flow Analysis

Upcoming Dividends and Special Distributions

What’s Ahead: Key Earnings Dates in July and August 2025

The upcoming weeks feature a packed calendar of earnings releases and dividends from major names including Raffles Medical, SIA, Mapletree Industrial, First REIT, Keppel, Elite UK REIT, Seatrium, OCBC, DBS, UOB, Wilmar, City Developments, and many more.

SGX Watch-List: Companies Under Regulatory Scrutiny

32 companies are currently on the SGX Watch-List, including recent additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. The list reflects ongoing regulatory oversight and the need for investors to monitor developments closely.

Macro Market News: Infrastructure, Cybersecurity, and Geopolitics

On the global front, private and public infrastructure remain attractive asset classes, with private infrastructure delivering higher operational efficiency and inflation hedging. Recent cybersecurity concerns surfaced as Microsoft identified Chinese state-sponsored hackers exploiting flaws in SharePoint software, affecting over 60 entities globally, including US government agencies.

While the full extent of data breaches remains under investigation, these incidents underscore the persistent risks faced by governments and corporations in an increasingly digital and geopolitically sensitive environment.

Conclusion: Navigating Uncertainty with Selectivity and Strategic Positioning

The Singapore market’s YTD performance underscores its resilience, but external headwinds, currency volatility, and sector-specific challenges demand a selective and strategic approach from investors. Dividend leaders and value picks present attractive options, while ongoing corporate actions, regulatory developments, and macro risks require vigilant monitoring. As earnings season continues, market participants should stay attuned to both company fundamentals and broader geopolitical dynamics.