Key Indices
Top Stories
Sector Update | Banking
- The US and Japan are confronted with rising bond yields and a surge in interest payments. Both the US and Japan have not entered a fiscal or sovereign debt crisis, but they are starting to feel the financial strains. The upward pressure on bond yields is exacerbated by elevated energy prices caused by the Middle East conflict, which is likely to be prolonged, as the US finds it increasingly difficult to extricate itself. Downgrade to MARKET WEIGHT.
Company Results | NTT DC REIT (NTTDCR SP/BUY/US$0.95/Target: US$1.31)
- Portfolio occupancy would have increased 3.3ppt to 99.2% if we include committed leases that have yet to commence. Most of these new leases are expected to contribute to revenue starting 3QFY27. NTTDCR has debt headroom of US$261m based on gearing of 40%, which could be utilised to acquire a hyperscale 24MW data centre in Frankfurt, Germany. Maintain BUY with target price at US$1.31.
Company Results | United Hampshire US REIT (UHU SP/BUY/US$0.51/Target: US$0.69)
- Portfolio occupancy remained high at 97.6%, and WALE was stable at 7.9 years for Grocery & Necessity properties. Tenants providing essential services accounted for 58.5% of gross rental income. Valuation is attractive with a 2026 DPU yield of 9.0% (Kimco Realty: 4.7% and Regency Centers: 4.0%). Maintain BUY. Target price: US$0.69.
Market Spotlight
- US stocks were higher on Friday, with all indices rising as materials, healthcare and financials sectors rose. There were more advancers than decliners on both the NYSE and NASDAQ.
- The FSSTI rose 17.05 points to 5,688.96, supported by strength in DBS and OCBC Bank, with both mid- and small-cap indices rising with a broad market advance on S$1.98b turnover.
Technical Analysis
DBS Group (DBS SP)
- Trading Buy Range: S$75.88-75.90
Sembcorp Industries (SCI SP)
- Trading Buy Range: S$5.97-5.98
Top Stories
Sector Update | Banking
- The US and Japan are confronted with rising bond yields and a surge in interest payments. Both the US and Japan have not entered a fiscal or sovereign debt crisis, but they are starting to feel the financial strains. The upward pressure on bond yields is exacerbated by elevated energy prices caused by the Middle East conflict, which is likely to be prolonged, as the US finds it increasingly difficult to extricate itself. Downgrade to MARKET WEIGHT.
Company Results | NTT DC REIT (NTTDCR SP/BUY/US$0.95/Target: US$1.31)
- Portfolio occupancy would have increased 3.3ppt to 99.2% if we include committed leases that have yet to commence. Most of these new leases are expected to contribute to revenue starting 3QFY27. NTTDCR has debt headroom of US$261m based on gearing of 40%, which could be utilised to acquire a hyperscale 24MW data centre in Frankfurt, Germany. Maintain BUY with target price at US$1.31.
Company Results | United Hampshire US REIT (UHU SP/BUY/US$0.51/Target: US$0.69)
- Portfolio occupancy remained high at 97.6%, and WALE was stable at 7.9 years for Grocery & Necessity properties. Tenants providing essential services accounted for 58.5% of gross rental income. Valuation is attractive with a 2026 DPU yield of 9.0% (Kimco Realty: 4.7% and Regency Centers: 4.0%). Maintain BUY. Target price: US$0.69.
Market Spotlight
- US stocks were higher on Friday, with all indices rising as materials, healthcare and financials sectors rose. There were more advancers than decliners on both the NYSE and NASDAQ.
- The FSSTI rose 17.05 points to 5,688.96, supported by strength in DBS and OCBC Bank, with both mid- and small-cap indices rising with a broad market advance on S$1.98b turnover.
Technical Analysis
DBS Group (DBS SP)
- Trading Buy Range: S$75.88-75.90
Sembcorp Industries (SCI SP)
- Trading Buy Range: S$5.97-5.98
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
