A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Singapore-based real estate developers OUE and Heeton warned of reporting an annual loss for 2020 via exchange filings. OUE said that the annual loss is primarily attributable to the S$ 435.4mn ($328mn) in net fair value losses on its investment properties. About 60% of this, S$298.9mn ($225mn) is related to the sale in September last year of the US Bank Tower, which is a Class A office property in Los Angeles. OUE also attributed the annual losses to the ongoing pandemic, due to which it had put in place support measures such as rental reliefs, rent deferment, rental rebates and flexible payment schemes. The company had reported a profit of S$321.8mn ($242mn) in 2019. OUE is scheduled to release its earnings on February 24. OUE’s SGD 3.75% bonds due 2022 and 4% bonds due 2025 are currently trading at 101.19 and 101.43 currently.

Heeton said that its expected annual net operating loss is primarily due to the adverse impact of the pandemic. The company said that travel restrictions have led to its malls and hotels witnessing a decline in rentals, room occupancies and rates, and corresponding revenue across the locations it operates in worldwide. This comes after it reported a 56.6% decline in revenues to S$12.7mn ($9.6mn) and a net loss of S$8.1mn ($6mn) for the first half of last year. Heeton’s SGD 6.08% 2021s and 6.8% 2023s are currently trading at 97.96 and 98.39 on the secondary markets.

Show Buttons
Hide Buttons