Lim & Tan Securities
Date of Report: 5 August 2025

Singapore Market Insights August 2025: REITs, Institutional Flows, and Key Corporate Moves

Market Overview: STI, Global Indices & Commodities Snapshot

The Singapore market continues to demonstrate resilience, with the FSSTI Index closing at 4,197.2, posting a one-day gain of 1.0%, a month-to-date increase of 0.6%, and a solid year-to-date climb of 10.8%. Major global indices reflected upbeat sentiment, with the S&P 500 and Nasdaq surging 1.47% and 1.95% respectively. The Dow Jones also moved higher by 1.34%. Notably, the Hang Seng Index boasts an impressive year-to-date rally of 23.3%.

Commodities saw mixed action: Gold advanced 0.1% to 3,377.5, up 28.7% YTD, while crude oil slipped 1.5% to 66.3, down 7.6% YTD. The Baltic Dry Index, a gauge of shipping costs, continued its strong momentum, up 102.4% YTD.

CapitaLand Ascendas REIT (CLAR): Resilience Amidst Market Uncertainty

Key Highlights:

• Distributable income for 1H 2025: S\$331.1 million (+0.1% YoY)
• DPU: 7.477 cents (-0.6% YoY) due to enlarged unit base
• Gross revenue: S\$754.8 million (-2.0% YoY)
• Net property income: S\$523.4 million (-0.9% YoY)
• Portfolio WALE: 3.7 years, with 1,790 tenants across 20+ industries
• Strong balance sheet and liquidity

CLAR maintained stable distributable income, underscoring the strength of its diversified portfolio and capital management. The slight dip in DPU was attributed to an enlarged unit base following a private placement to fund recent acquisitions. Revenue and NPI saw minor declines, mainly due to the divestment and decommissioning of several properties in Australia, Singapore, the US, and the UK, partially offset by new US property acquisitions.

Portfolio Expansion & Redevelopments:

• Acquired DHL Indianapolis Logistics Center (US) for S\$153.4 million
• Acquisitions of 9 Tai Seng Drive (Tier III data centre) and 5 Science Park Drive (premium business space) in Singapore, totaling S\$724.6 million, approved by unitholders and expected to complete in 2H 2025
• Redevelopment of 1 Science Park Drive (life sciences/business space), completed at S\$883.0 million, 95% committed or in advanced negotiations

With 67% of assets to be anchored in Singapore post-acquisition, CLAR remains well-positioned to weather market volatility, backed by its long WALE and diversified tenant base. At S\$2.88, it trades at a 1.3x P/B, 18-19x forward PE, and a 5.2% dividend yield, with a target price of S\$3.15 (12.5% upside). The stock is rated “Accumulate on Weakness.”

Lendlease REIT: Stable Distributions, Strong Singapore Retail Exposure

Key Highlights:

• FY2025 gross revenue: S\$206.5 million (-6.5% YoY)
• Net property income: S\$148.8 million (-10.0% YoY)
• Proforma revenue (ex-supplementary rent): +1.1% YoY
• DPU for 2H FY2025: 1.80 cents (+1.8% YoY)
• Committed occupancy: 92.1%
• WALE: 7.2 years (NLA), 4.9 years (GRI)
• Retail occupancy >99%, rental reversion +10.2%
• Market cap: S\$1.4 bln, trades at 0.6x PB, dividend yield 6.4%
• Consensus target price: S\$0.63 (11.5% upside)

Lendlease REIT navigated a challenging year with stable core operational metrics. After adjusting for one-off supplementary rent recognized in FY2024, both gross revenue and NPI posted slight year-on-year increases. Property expenses rose mainly due to a provision for doubtful debts tied to Cathay Cineplexes, but were otherwise stable.

The REIT’s debt remains secured with 68% hedged to fixed rates and a manageable average cost of 3.46%. Singapore retail assets, comprising over 85% of the portfolio post-Jem Office divestment, continue to show robust operational performance, with healthy tenant retention and footfall. Management expects lower interest rates to further support future distributions. The recommendation is to “Accumulate” based on stable fundamentals and attractive yield.

Other Notable Companies: High Dividend Yields, Low Valuations

Highest Consensus Forward Dividend Yields (%):

• DFI Retail Group: 14.23
• Frasers Logistics Trust: 6.86
• DBS Bank: 6.42
• Mapletree Industrial Trust: 6.29
• Mapletree Pan Asia Comm Trust: 6.15

Lowest Consensus Forward P/E (X):

• Yangzijiang Shipbuilding: 7.74
• Jardine Matheson: 10.16
• UOB Bank: 10.30
• Thai Beverage: 10.32
• OCBC Bank: 10.39

Lowest Trailing P/B (X):

• Hongkong Land: 0.45
• UOL Group: 0.51
• Jardine Matheson: 0.60
• City Developments: 0.63
• Mapletree Pan Asia Comm Trust: 0.72

Lowest Trailing EV/EBITDA (X):

• Yangzijiang Shipbuilding: 4.29
• Genting Singapore: 5.78
• DFI Retail Group: 6.66
• Venture Corp: 9.52
• Thai Beverage: 9.83

Key Corporate Actions: Acquisitions, Disposals, and Share Buybacks

• Addvalue Tech: Insider Vimesh Piyush acquired 4 million shares, raising stake to 5.05%.
• Sanli Environmental Engineering: Tan Kim Seng bought 2 million shares; Sim Hock Heng disposed of 10.5 million shares.
• Indofood Agri Resources: PT Indofood Sukses Makmur Tbk increased its stake to 85.87%.
• Singapore Shipping Corp: Ow Chio Kiat bought 2.5 million shares, raising stake to 44.39%.
• Notable share buybacks: OCBC, DBS, Keppel Ltd, Olam, HK Land, Global Investment Limited, and others conducted sizeable buybacks, reflecting management’s confidence in their respective companies.

Institutional and Retail Fund Flows: Shifting Market Dynamics

Institutional investors were net sellers in the week of 28 July 2025 (-S\$494.6m), a reversal from the prior week’s net buy. In contrast, retail investors turned net buyers (+S\$380.8m), rebounding from the previous week’s net sell. The top institutional net buy was iFast Corporation (S\$64.0m), while DBS saw the largest net institutional sell (-S\$135.9m). Conversely, SIA was the top retail net buy (S\$225.6m), with iFast Corporation leading retail net sells (-S\$102.1m).

Sector flows highlight strong retail appetite for financial services and real estate, while institutions trimmed exposure to banks and technology.

Macro Developments: US, China, and India

Global fixed income strategists recommend staying overweight duration and long curve steepeners amid slowing global growth but no imminent recession. G7 central banks are expected to adopt neutral stances, supporting expectations of a soft landing. China’s Chery Automobile is set to supply technology and components to India’s JSW Group for a new-energy vehicle brand launch by 2027, marking a major technology transfer despite bilateral investment restrictions.

Dividends, Special Distributions & Key Corporate Dates

A range of companies announced dividend payouts and special distributions. Notable upcoming ex-dividend dates and payment timelines include:

A comprehensive calendar of earnings releases spans major blue chips, including UOB, DBS, Genting, SGX, CapitaLand entities, Wilmar, Venture, City Developments, and more throughout August.

SGX Watch-List: Companies to Monitor

32 companies are currently under the SGX Watch-List due to various compliance triggers. Recent additions include Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.

Conclusion

Singapore’s financial markets showcase strength and adaptability, led by resilient REITs, robust retail investor participation, and active corporate maneuvers. Investors should monitor evolving sector dynamics, dividend opportunities, and the shifting landscape of institutional and retail fund flows for optimal positioning in the months ahead.