SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

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

Capitaland Integrated Commercial Trust (CICT) reported a net property income (NPI) increase of 66% YoY to S$247mn ($186mn) and gross revenues of S$334.8mn ($253mn), up 64% YoY. The increase in revenues and NPI were mainly due to ‘higher integrated development performance’ compared to the previous year and factoring in income contribution from office assets. The Singapore REIT (Term of the day, explained below) said that portfolio occupancy stood at 95.9%. After issuing two long-tenor notes through its S$7bn ($5.3bn) multicurrency MTN programme in Q1, the trust’s average term to maturity extended to 4.4Y in March, compared to 4.1Y at end-2020.

CICT’s SGD bonds were trading stable with its 3.65% Perp at 101.42, yielding 3.21%.

Suntec REIT reported distributable income from operations at S$58.1mn ($43.9mn) and NPI of S$59.5mn ($44.9mn), up 5.4% and 10.2% YoY translating to a distribution per unit (DPU) of 2.045 cents, up 16.2% YoY. Revenues were almost flat with lower occupancy in Suntec City Office and Mall with higher rent helping offset some of the reduction. Suntec’s weighted average debt maturity stood at 2.94Y vs. 3.01Y end-2020 with total debt outstanding at S$4.88bn ($3.7bn).

Suntec’s SGD bonds were flat with its 3.8% Perp at 99.53, yielding 3.92%.

Ascendas REIT reported Q1 portfolio occupancy at 90.6%, falling from 91.7% end-2020. The company said it has a healthy aggregate leverage of 38%, though it was higher than 32.8% as at end-2020. Ascendas said that demand in Singapore was expected to remain subdued as companies were cautious amid global uncertainties. They noted that their weighted average debt maturity was stable at 3.3Y adding that green financing accounted for about 16% of total borrowing of S$6.3bn ($4.8bn).

Ascendas’ SGD bonds were unchanged with its 3% Perp at 100.83, yielding 2.8%.

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