Happy times are here again as Singapore looks towards a recovery.
With the further easing of restrictions last week, many can finally look forward to larger gatherings and overseas travel.
Businesses are also poised to benefit from this move.
With travel and tourism set to rebound, consumer demand should also stay high.
Many stocks have already run up in anticipation of this recovery as investors look ahead to better earnings and dividends.
A group of stocks recently hit a year-high due to the tide of rising optimism.
The question of whether their run can continue should hinge on whether there are catalysts or sustainable trends that can power earnings and cash flow into the future.
Here are three stocks that hit a 52-week high recently.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT that owns a portfolio of 24 properties — 20 in Singapore, two in Frankfurt, Germany, and two in Sydney, Australia.
CICT’s properties are worth around S$22.9 billion as of 25 March 2022.
The REIT’s units recently hit a 52-week high of S$2.31 and are up around 12.2% year to date.
CICT had reported a strong set of earnings for fiscal 2021 (FY2021) ended 31 December 2021.
Gross revenue surged by 75.1% year on year to S$1.3 billion while net property income (NPI) jumped 85.5% year on year to S$951 million.
The better performance was due to the merger of both CapitaLand Mall Trust and CapitaLand Commercial Trust.
Distribution per unit (DPU) rose 19.7% year on year to S$0.104, giving the REIT’s units a trailing distribution yield of 4.5%.
CICT recently announced the acquisition of a 70% interest in 79 Robinson Road, a Grade A office building located in Tanjong Pagar.
This purchase should add 2.9% to the REIT’s DPU.
Last month, CICT also announced the completion of its divestment of JCube, a shopping mall located in Jurong.
These moves are part of the REIT’s strategy to recycle capital from lower-yielding assets to higher-yielding ones.
Meanwhile, CapitaSpring, Singapore’s newest skyscraper which is jointly owned by CICT, CapitaLand Development and Mitsubishi Estate Co., Ltd, announced its completion in early February with 93% in leasing commitments.
Suntec REIT (SGX: T82U)
Suntec REIT is a commercial and retail REIT that owns Suntec City, Singapore’s largest integrated commercial development, and interests in other commercial assets in Singapore, Australia and the UK.
Its units recently hit a 52-week high of S$1.80 and are up close to 17% year to date.
The REIT reported a respectable performance for FY2021.
Gross revenue increased by 13.5% year on year to S$358.1 million while NPI jumped 27.4% year on year to S$254.6 million.
New contributions from the Minster Building in the UK as well as contributions from Suntec REIT’s Australian assets led to better performance.
DPU improved by 17.1% year on year to S$0.08666, giving the REIT’s units a trailing distribution yield of 4.8%.
Suntec REIT’s gearing stood at 43.7% along with a cost of debt of 2.35%.
The recovery in tenant sales at Suntec City Mall has been encouraging and occupancy has also improved to 95% as of 31 December 2021.
SIA Engineering Company Ltd (SGX: S59)
SIA Engineering Company Ltd, or SIAEC, is a provider of aircraft maintenance, repair and overhaul (MRO) services.
The group has a client base of more than 80 international airlines and provides line maintenance services at more than 25 airports in seven countries.
SIAEC’s share price recently hit a 52-week high of S$2.67 and is up almost 23% year to date.
The group reported recovery for its business for the first nine months of fiscal 2022 (9M2022).
Revenue increased by 23.2% year on year to S$403.5 million while operating loss nearly halved year on year to S$14.5 million.
However, the share of profits from associates and joint ventures surged by 64.4% year on year to S$66.9 million, allowing SIAEC to report a net profit of S$58.2 million.
Looking ahead, the reopening of borders and introduction of a vaccinated travel framework to replace the previous vaccinated travel lanes system should bode well for the group’s MRO business.
Just this week, SIAEC signed a memorandum of understanding for hangar facilities in Subang, Malaysia as part of the expansion of its regional base maintenance network.
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Disclaimer: Royston Yang owns shares of Suntec REIT.