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CGS INTERNATIONAL |
UOB KAYHIAN |
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Seatrium Ltd Building its orderbook bit by bit
■ We estimate a S$400m-500m contract value for STM’s conversion and integration work on five Powerships for Karpowership. ■ This brings YTD order wins to c.S$3.3bn including Golar FLNG LOI. STM is also reportedly bidding for EPCI work for QatarEnergy (est. c.S$500m). ■ 3Q26 business update to be out on 19 Nov. Maintain Add. Catalysts: final contract from Golar and sizeable orders worth over S$1bn.
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REITs Data Centre REITs: Value Emerges After The Carnage
Highlights • Uncertain commercial returns, heavy capital requirements and rising borrowing costs have hurt leveraged neocloud providers and delayed DC IPOs. Established hyperscalers remain better positioned thanks to diversified earnings and stronger cash flows. • Power shortages, tighter financing and environmental opposition are slowing new development, which reinforce the value proposition of operational DCs and efforts to backfill vacant capacity. AI’s benefits remain intact, but infrastructure investment needs to be spread over a longer period of time. • Maintain OVERWEIGHT. NTTDCR (BUY/Target: US$1.29) offers the highest FY27 DPU yield of 9.4%. KDCREIT (BUY/Target: S$2.83) has a resilient Singapore-centric portfolio and is well supported by sponsor Keppel.
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| UOB KAYHIAN | UOB KAYHIAN |
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Suntec REIT (SUN SP) 3Q26: Expression Of Interest Exercise To Divest Australia Assets
Highlights • Suntec City Mall maintained its stellar performance with NPI growth of 11.6% yoy in 3Q26. Its occupancy was stable at 98.6%, and rental reversion strengthened to 11.2%. Tenant sales psf grew an impressive 10% yoy. • SUN has launched expression of interest for 177 Pacific Highway and 21 Harris Street in Sydney and 477 Collins Street in Melbourne, which are valued at S$1,037m in aggregate. The exercise should conclude in Nov 26. • SUN trades at steep 32% discount to NAV. Maintain BUY. Target price: S$1.67.
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Keppel DC REIT (KDCREIT SP) 9M26: Completes Acquisition Ahead Of AI Funding Squeeze
Highlights • KDCREIT achieved rental reversion of 16% in 3Q26, driven by lease renewal in Singapore and Australia. NPI grew 13% yoy in 9M26 due to positive reversions, rental escalations and acquisition of Tokyo DC 3. • KDCREIT continues to build scale in hyperscale DCs. Potential acquisitions from sponsor pipeline, such as SGP9 in Singapore and a DC in Western Tokyo, are likely to materialise in 2028. • KDCREIT has a resilient Singapore-centric portfolio and is well supported by sponsor Keppel. Maintain BUY. Target price: S$2.83.
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| PHILLIP SECURITIES | PHILLIP SECURITIES |
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Frasers Centrepoint Trust Record FY26 DPU, AEIs to drive growth
SINGAPORE | REAL ESTATE (REIT) | FY26 RESULTS ▪ 2H26/FY26 DPU of 6.21/12.35 Singapore cents was 2.6%/2% higher YoY, in line with our estimates and forming 50%/99% of our FY26e forecast, despite S$7.6mn in distributable income retention in FY26. 2H26/FY26 NPI grew 12%/16% YoY, driven by the full-year contribution from Northpoint City South Wing following its acquisition in May 2025 and organic rental growth.
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Singapore Air Transport – Sep26 Passenger capacity expanding in lieu of 4Q demand
• In Sep26, the aviation sector largely continued its decline. CAO dropped significantly (- 7.5%), followed by SATS and SIA at -2.3% and -0.7%, respectively. SIA Engineering increased incrementally by 1.0%. We believe CAO's decline reflects sustained high jet fuel prices feeding through cost of sales. With its lower-cost inventory used, the benefit from cheaper procurement has faded, and future jet fuel procurement will likely be at current elevated costs.
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