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NetLink NBN Trust
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Joelton
Supreme |
29-Aug-2026 13:32
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NetLink NBN Trust CEO on why stability is the business model Most Singaporeans have never had a reason to think about who owns the infrastructure that makes our Zoom calls, food delivery orders, or social media content consumption possible. It shows up as a single line item on a broadband bill, disappearing into the general category of &ldquo internet&rdquo . Yet somewhere behind every retailer&rsquo s technician and every router blinking to life for the first time, one company has already done the invisible work &mdash NetLink NBN Trust (NetLink). CEO Tong Yew Heng, sums up what it actually does: &ldquo NetLink is the owner and operator of the nationwide fibre network in Singapore. This fibre network is connected to homes and businesses across the island in Singapore. What we don&rsquo t do is offer an internet package to the end-user.&rdquo In other words, the company does not sell broadband services to consumers. Instead, it provides wholesale fibre services to the telcos, who in turn sell data packages to the consumer. Who actually pays, and how much This distinction matters for understanding NetLink&rsquo s revenue. Tong explains that end-users effectively pay for the service, but not directly to NetLink. Instead, telcos pay NetLink for every connection they activate. &ldquo Today, they will pay us $13.50 a month for every fibre connection that they activate,&rdquo he says. &ldquo That&rsquo s how we get our residential revenue ... for other services, they will pay a different rate, because, for example, non-residential is $55 per month.&rdquo Residential connections alone make up about 60% of total revenue, a share that has stayed relatively stable, and which Tong attributes to the fact that once a household is connected to broadband, it rarely gives up the connection. &ldquo Once an end-user gets connected to a broadband, hardly anyone will give it up even if they move to a new home, they will reconnect with a new connection,&rdquo he points out. Since Singapore&rsquo s fibre penetration is already high, Tong is candid about this ceiling for NetLink. Residential connections growth from here will be incremental rather than a step change, driven mainly by the roughly 25,000 new homes built in Singapore each year. The non-residential segment remains competitive, since businesses can switch operators or consolidate connections, and other telcos can lay their own fibre to office buildings. Tong notes this segment has seen some quarter-to-quarter softness but frames it in proportion: non-residential connections contribute only about 8% of total revenue, versus 60% from residential, and this would only be a real concern if the decline turned structural over multiple years. Not a &lsquo data centre play&rsquo Given how much investor attention data centres and AI infrastructure attract, it is worth noting how Tong positions NetLink relative to the theme. His answer is intentional and modest. He says: &ldquo I would say NetLink is not a data centre play&rdquo , but notes that rising data centre and AI-related activity is still significant, since it drives more demand for fibre connections between data centres, enterprises and cloud servers. This extends to satellite broadband as well. Asked whether services like Starlink pose a long-term threat, Tong argues Singapore&rsquo s geography works against that thesis: &ldquo It&rsquo s very different in Singapore where we don&rsquo t need that [Starlink] because everyone has access to high-quality fibre connectivity and at a very high speed.&rdquo In addition, he highlights that satellite speed is lower, latency is higher, and the cost is greater than fibre broadband in Singapore. The regulatory framework that sets the return The single mechanism most central to how NetLink makes money is what Tong calls the regulated asset base (RAB) framework, reviewed once every five years by the regulator (the Infocomm Media Development Authority, in this case). The framework lets NetLink recover both the capital expenditure (capex) and operational expenditure (opex) it invests in the network, plus a return on that capex, providing stability for investment and cash flow over the long life of the fibre assets. The most recent review was completed in 2024, resulting in a 7% pre-tax weighted average cost of capital (WACC) &mdash essentially, the rate of return the regulator allows NetLink to earn on the money it has invested in the network. Regulators typically set a lower allowed return for lower-risk businesses, since less compensation is needed to justify the investment. Tong sees the number in that light: &ldquo It is pretty good for the current environment and for a business of NetLink&rsquo s risk profile, since we generally have a lower risk profile.&rdquo The next review is expected to be completed in 2029, and Tong says that the trust treats the process as an ongoing conversation with the regulator rather than something to prepare for only when it arrives. Reading the distribution: what the numbers actually mean For income-focused investors, the most important thing to understand is that NetLink&rsquo s distribution is not paid out of net profit, but instead paid out of cash available for distribution. Last financial year, NetLink brought in $259 million in operating cash flow, (the actual cash generated by running the business). Of that, it paid out $210 million to unitholders and kept the remaining $49 million or so to help fund new construction (capex), topped up where needed with borrowing. Net profit, by contrast, was only around $80 million. This is a much smaller number, and one that might understandably worry investors comparing it to $210 million in distributions. But the gap is explained by a single, non-cash accounting item: depreciation. NetLink&rsquo s accounts recognise about $185 million a year in depreciation and amortisation, which spreads the cost of building the fibre network over its decades-long useful life. It is a real accounting charge, but no cash actually leaves the business when it is recorded. As Tong puts it: &ldquo We have a lot of cash right after taking out all the costs, so it&rsquo s important not to focus on the smaller number, but to focus on the operating cash flows.&rdquo In other words, if you only look at net profit, NetLink&rsquo s payout looks like it exceeds what the company earns. If you look at operating cash flow instead &mdash the money that actually moves through the business &mdash the distribution is comfortably covered, with room left over to invest in the network. The risks and the reality Asked what could most affect the trust&rsquo s ability to sustain distributions, Tong doesn&rsquo t hesitate. &ldquo The most significant risk for NetLink, actually, is regulatory risk,&rdquo he says, since the rate of return set at each five-yearly review determines how much cash flow the trust generates. He points to the trust&rsquo s track record &mdash both the 2016 and 2024 reviews landed within expectations &mdash as evidence that ongoing engagement with the regulator has managed that risk so far, while stopping short of guaranteeing future outcomes. One structural feature Tong flags as easy to overlook: NetLink is a business trust with an internalised trustee-manager. &ldquo There is no external owner of the trustee manager. There are no performance fees to be paid to someone else or management fee to be paid to someone else. So, there&rsquo s total alignment of the trustee manager and the unitholders, and you save a ton of money.&rdquo Asked to sum up what investors should know before putting money into NetLink, Tong returns to a single idea: &ldquo It&rsquo s very important to understand that NetLink is the owner and operator of the fibre network, and that this fibre network is of high quality. It has a very long, useful life, and therefore will continue to generate cash flow over a long period of time.&rdquo |
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Joelton
Supreme |
08-Aug-2026 15:16
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NetLink NBN Trust records profit after tax of $18.1 mil for 1QFY2027, down 22.4% y-o-y NetLink NBN Trust (SGX:CJLU) has reported a profit after tax (PAT) of $18.1 million for 1QFY2027 ended June 30, down 22.4% y-o-y. The lower bottom line was mainly due to higher depreciation arising from a larger asset base. Revenue for the period saw a decline of 1.4% y-o-y to $101.3 million, mainly due to lower non-Regulated Asset Base (RAB) revenue, while RAB revenue remained relatively stable. NetLink NBN Trust explains that the lower non-RAB revenue was due to lower installation-related revenue and partially offset by higher ancillary project revenue. Meanwhile, EBITDA declined 4% y-o-y to $69.1 million due to higher operating expenses. EBITDA margin for the period was down by 1.8 percentage points to 68.2%. As at June 30, residential connections stood at 1,519,269, non-residential connections at 51,459, NBAP connections at 3,603, and Segment connections at 4,330. NetLink NBN Trust says that gross additions for residential connections remained stable in Q1FY2027, while non-residential connections declined due to end-user churn between Requesting Licensees. Gross debt stood at $991 million as at end-June, unchanged from end-March, while net debt over EBITDA rose to 3 times from 2.6 times over the same period. Weighted average debt maturity fell to 4.7 years from 4.9 years and 74.7% of its borrowings are on fixed rate, an increase from 48.4% from the same period. Units in NetLink NBN Trust closed unchanged at $1.01 on Aug 7. |
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Alignment
Elite |
17-Jun-2026 18:14
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Not sure how dividend can go up if capital base is falling because depreciation is greater than capex. Any ideas? |
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Joelton
Supreme |
09-Jun-2026 10:23
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M& G Investments emerges as substantial shareholder of NetLink NBN Trust Global asset manager, M& G Investments, has emerged as a substantial shareholder of NetLink NBN Trust (SGX:CJLU) . In the filing on June 8, the asset manager has purchased 8,199,800 units for a total consideration of $8,281,798, excluding brokerage and stamp duties. This translates to an average price of $1.01. This brings its stake in NetLink NBN Trust from the previous 4.92% to 5.14%. Units in NetLink NBN Trust closed unchanged 98.5 cents on June 8. |
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Joelton
Supreme |
15-May-2026 10:59
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NetLink NBN Trust posts 1.1% rise in H2 DPU to S$0.0271 Company expects its business to &lsquo remain resilient&rsquo despite uncertainties from Middle East conflict [SINGAPORE] Fibre network operator NetLink NBN Trust posted a 1.1 per cent rise in distribution per unit (DPU) to S$0.0271 for the half-year ended Mar 31, as more government project completions drove top-line growth. H2 revenue was up 2.1 per cent to S$206.3 million, thanks to higher revenue from the ancillary project, co-location and central office segments, the company announced after trading hours on Thursday (May 14). Ancillary project revenue was driven by more government project completions, while central office revenue was driven by the recovery of higher maintenance-related costs incurred in these offices. The H2 revenue increase was partially offset by lower revenue from installations and other areas. This was due to lower orders for non-residential terminal point installations and fewer point-to-point installations, amid slower project activity. Despite the top-line growth, H2 profit after tax fell 15.1 per cent to S$39.8 million. This came amid an 8.5 per cent increase in expenses for the half-year to S$174.6 million, partly due to maintenance requirements of its new Seletar Central Office, as well as higher staff costs. For the full year, NetLink&rsquo s DPU rose 1.1 per cent to S$0.0542 cents, on the back of a 1.6 per cent revenue increase to S$413.4 million. The company noted that the Middle East conflict has introduced &ldquo renewed uncertainty, particularly from energy price volatility and supply-side pressures&rdquo . It also expects higher operating costs and depreciation from the Seletar Central Office and ongoing investments into systems and fibre network infrastructure. This is set to erode profit after tax. Nevertheless, these capital investments are &ldquo eligible for regulatory recovery in future periods&rdquo , NetLink noted. The company expects its business to &ldquo remain resilient, supported by the essential nature of its services and its regulated business model&rdquo , and for FY2027 DPU to &ldquo remain stable&rdquo relative to the latest financial year. NetLink ended Thursday flat at S$1.02. |
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JurongW
Elite |
01-May-2026 01:51
Yells: "Earnings give weight, Chart give wings" |
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NetLink NBN Management Pte. Ltd., as trustee-manager of NetLink NBN Trust, will be announcing the financial results of NetLink NBN Trust for the full year and half year ended 31 March 2026, after the close of trading on 14 May 2026. |
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JurongW
Elite |
16-Mar-2026 17:51
Yells: "Earnings give weight, Chart give wings" |
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Acquisition of 1,334,400 shares by DBS bank at $0.953 on 9 Mar 26. https://links.sgx.com/1.0.0/corporate-announcements/ECSO7VZ2UIC7BH74/878410__Netlink%2020260313_FORM%203%20final.pdf |
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Alexch
Member |
30-Jan-2026 18:37
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Seems like NetLink is a good candidate for STI march now, right? Can it replace FCT? |
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Joelton
Supreme |
30-Jan-2026 11:10
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NetLink NBN Trust&rsquo s 9-month profit down 11.8% at S$65.4 million
This was due to higher depreciation from a larger asset base and higher net finance costs
[SINGAPORE] Fibre infrastructure provider Netlink NBN Trust : CJLU +0.51% posted a 11.8 per cent drop in net profit to S$65.4 million for the nine months ended Dec 31, from S$74.1 million in the previous corresponding period.
This was due to higher depreciation from a larger asset base and higher net finance costs, and was partially offset by a higher income tax credit, said the trust in a bourse filing on Thursday (Jan 29).
Depreciation and amortisation rose 6 per cent to S$138.9 million, compared with S$131.1 million the previous year.
Revenue rose 1.6 per cent year on year to S$313 million, from S$308.2 million. This was due to higher co-location revenue and higher ancillary project revenue, but was partially offset by lower connections, lower ducts and manholes service revenue and lower central office revenue.
Total connection numbers &ndash comprising residential and non-residential connections &ndash dipped slightly.
Residential connections hovered at around 1.5 million, similar to last year, while non-residential connections fell to 52,574 from 53,454.
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Joelton
Supreme |
04-Nov-2025 09:53
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NetLink Trust posts 10.2% drop in H1 profit to S$43.5 million on higher depreciation
Revenue is up 1.1% year on year at S$207.1 million
[SINGAPORE] Fibre network provider NetLink NBN Trust : CJLU +0.51% on Monday (Nov 3) posted a 10.2 per cent drop in net profit to S$43.5 million for the half-year ended Sep 30, from S$48.5 million in the previous corresponding period.
Its trustee-manager said this was mainly due to higher depreciation and amortisation, primarily from its Seletar Central Office, which opened in October this year.
However, the manager added in a bourse filing that this was partially offset by a higher income tax credit.
Earnings per share stood at S$0.0112 for the first half of FY2026, down from S$0.0124 the previous year.
Revenue rose 1.1 per cent to S$207.1 million, from S$204.8 million a year earlier.
The manager said the increase was mainly driven by higher ancillary project revenue from the completion of more government projects during the period.
Stronger co-location revenue supported by higher rack space take-up and a one-off cost recovery related to the upgrade of the Nationwide Broadband Network, which now supports speeds of up to 10 Gbps, also boosted income.
The manager also announced a distribution per unit of S$0.0271 for the half-year, 1.1 per cent higher than the previous corresponding period&rsquo s S$0.0268.
The manager said that despite a volatile global environment marked by geopolitical tensions and economic uncertainty, the group&rsquo s resilient business model &ndash supported by regulated price certainty under the revised Interconnection Offer framework &ndash continues to deliver stable revenue and operating cash flow.
It added that the fibre network provider has taken proactive steps to strengthen its balance sheet.
These include establishing a new three-year S$120 million sustainability-linked revolving credit facility (SLRCF) in July 2025, and refinancing its existing SLRCFs through the issuance of S$300 million in 10-year fixed-rate notes at 2.65 per cent in September 2025.
Also, NetLink Trust issued S$300 million of Qualifying Project Debt Securities to NetLink NBN Trust, a move expected to enhance the group&rsquo s tax efficiency over time.
While the group continues to improve efficiency and manage costs, operating pressures and higher depreciation from ongoing fibre network investments have affected profit margins.
However, the statement said that these investments are part of its regulated asset base and qualify for recovery.
Nevertheless, the group remains focused on expanding its network to meet rising demand across residential, commercial, and other segments, while exploring new opportunities in telecoms and infrastructure-related businesses, it added.
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Joelton
Supreme |
08-Oct-2025 11:34
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NetLink opens S$110 million Seletar Central Office to serve northern Singapore
The facility will benefit upcoming developments including the North-South Corridor and 40,000 new homes
[SINGAPORE] Internet service provider NetLink NBN Trust : CJLU +0.52% opened a S$110 million new central office in Seletar on Tuesday (Oct 7), its trustee-manager said in a statement on the same day.
The central office will support NetLink&rsquo s fibre network infrastructure in Singapore&rsquo s northern and north-western regions, which are expected to undergo significant development, noted the trustee-manager.
This marks the 11th central office of the government-backed nationwide broadband network (NBN), which NetLink provides the infrastructure for, it added.
The NBN is the network through which ultra-high-speed Internet access is delivered throughout the country. NetLink has designed, built and operated Singapore&rsquo s fibre network infrastructure since 2008.
The new central office is expected to serve about 40,000 new homes across the Woodlands North, Woodlands Regional Centre, Kranji, Chencharu and Sembawang North areas, as well as next-generation industrial districts such as the Sungei Kadut Eco-District.
It will also provide coverage to transport and infrastructure projects including the North-South Corridor and the Johor Bahru-Singapore Rapid Transit System Link.
NetLink&rsquo s trustee-manager said that the central office will support the NBN&rsquo s overall resiliency by strengthening network redundancy and expanding coverage.
&ldquo The Seletar Central Office adds important capacity to the NBN, ensuring that the northern region&rsquo s new housing, transport and industrial developments are well-supported with reliable, future-ready fibre connectivity,&rdquo said Tong Yew Heng, chief executive of the trust.
The trustee-manager added that it would continue to work alongside government, community and industry stakeholders to support the country&rsquo s Smart Nation initiatives and digital infrastructure needs.
&ldquo By providing robust and scalable fibre network infrastructure, the Seletar Central Office will help enable these communities and enterprises to connect, innovate, and thrive in a digital economy,&rdquo the statement noted.
In 2024, the Infocomm Media Development Authority had announced a S$100 million upgrade to the NBN, for it to run at higher speeds of up to 10 gigabits per second.
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Alignment
Elite |
31-Aug-2025 19:49
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True! Better to be lucky than good! |
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tritonyeah666
Elite |
31-Aug-2025 18:39
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as long as the share price trends up, thats all that matters lol |
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Alignment
Elite |
02-Aug-2025 13:33
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Difficult for DPU to trend up if capex is less than drepreciation. |
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Joelton
Supreme |
01-Aug-2025 11:03
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NetLink Trust reports 9.2% fall in Q1 FY2026 earnings to S$23.3 million on lower Ebitda, expanded asset base
But its revenue was up 1.9% year on year at S$102.8 million Ebitda took a dip of 1.9% to S$70 million
[SINGAPORE] The manager of NetLink NBN Trust on Thursday (Jul 31) reported a 9.2 per cent fall in its Q1 FY2026 earnings to S$23.3 million, from S$25.7 million in Q1 FY2025.
Revenue for the period rose 1.9 per cent to S$102.8 million from S$100.9 million the year before. This was driven by higher ancillary project and installation-related revenue.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) fell 1.9 per cent to S$72 million in Q1 FY2026, from S$73.4 million in Q1 FY2025. This came on the back of higher operating expenses and an expanded asset base, resulting in the fall in earnings.
There was a slight decline in total connection numbers &ndash comprising residential and non-residential connections &ndash in the quarter. This was mainly the result of housekeeping efforts: licensees were asked to remove inactive residential connections in the non-residential segment, the drop was the result of end-user churn among licensees.
The declines were partially offset by continued growth in non-building address points and segment connections, fuelling demand by Smart Nation and enterprise infrastructure projects.
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kopi_man
Member |
09-Jul-2025 17:21
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Did anyone attend the briefing organised by SIAS for Netlink Trust? Care to share what you learned? Thanks |
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Joelton
Supreme |
20-May-2025 11:31
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Analysts stay upbeat on NetLink despite FY2025 earnings dip
Analysts remain moderately optimistic about NetLink NBN Trust even though its FY2025 ebitda declined 1.5% y-o-y to $288.1 million due to lower revenue, lower non-operating income and higher operating expenses.
Revenue dipped 1% y-o-y to $407 million due to a drop in ancillary project revenue from fewer work orders alongside a slight dip in regulated asset base (RAB).
Under the RAB model, NetLink has secured a 7% regulatory return for the five-year period beginning April 2024, unchanged from the previous term. Residential connection prices have been cut by 2% to $13.50 per link, and non-building access points (NBAP) rates fell 4.5% to $70.50.
The impact of the lower interconnect rates will be offset by growth in connection volumes over the next four years, notes DBS Group analyst Sachin Mittal, who reiterates his &ldquo buy&rdquo call with an unchanged target price of 98 cents.
NetLink&rsquo s forward yield of 5.9% implies a spread of 330 basis points over the 10-year Singapore government bond yield of 2.6%, above the four-year average of 319 bps. &ldquo We expect NetLink&rsquo s distribution per unit (DPU) to rise by 1% to 2% annually over the next few years, and the yield spread to narrow towards 250 bps, to reflect the resilient nature of its distributions,&rdquo Mittal writes in a note dated May 16.
CGS International analysts Lim Siew Khee and Li Jiali also maintain &ldquo add&rdquo on NetLink with an unchanged target price of $1.
They expect residential connections, which accounted for 60.5% of FY2025 revenue, to rise in line with the uptrend housing numbers in Singapore. Contribution from the co-location segment is also expected to pick up as NetLink&rsquo s Seletar Central Office becomes operational.
&ldquo While ancillary project revenue in FY2025 is lower by 27% y-o-y, [Netlink&rsquo s] management remains optimistic it will see positive contribution from this in FY2026, citing the ongoing construction activities in Singapore,&rdquo state the CGSI analysts.
Moreover, the analysts expect lower capital expenditure (capex) for network upgrading works in FY2026, in comparison to capex in FY2024 and FY2025. &ldquo Fixed rate borrowing stood at 70.1% as of March 25 and is expected to increase to 80% after June 2025, according to NetLink. The effective average interest rate dipped by 3bp in 4QFY2025. Management expects it to remain largely stable at this level.&rdquo
Meanwhile, PhillipCapital analyst Paul Chew maintains his &ldquo neutral&rdquo stance on NetLink with the same target price of 87 cents.
While growth is expected to pick up in FY2026 on the back of higher residential and non-residential connections, Chew notes that free cash flow (FCF) will stay negative in the near term due to elevated capex for network upgrades to support 10 Gbps bandwidth and IT systems.
The $510 million term loan at a 1.1% interest rate is due for refinancing in mid-2026, too. &ldquo If we assume a 2% point rise in interest cost, the incremental interest expenses are around $10 million,&rdquo Chew estimates.
He adds that the increased capex will not translate into higher immediate revenue. &ldquo The higher capex is guaranteed a regulatory revenue, but no incremental revenue. Returns are from maintaining current connection rates. The new central office in Seletar will not generate rental revenue, unlike existing locations.&rdquo
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Joelton
Supreme |
16-May-2025 12:04
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NetLink NBN Trust&rsquo s net profit slips 6.9% to S$46.9 million for H2 FY2025
Revenue for the half is down 1.8% year on year to S$202.2 million
[SINGAPORE] Internet service provider NetLink NBN Trust : CJLU 0% posted a 6.9 per cent decrease in net profit to S$46.9 million for the second half ended Mar 31, 2025.
NetLink&rsquo s earnings were impacted by higher depreciation and amortisation, lower income tax credit and higher finance costs, it said in a regulatory filing on Thursday (May 15).
Revenue for the half was down 1.8 per cent year on year to S$202.2 million, primarily due to a S$3.2 million reduction in ancillary project turnover from fewer work orders. The availability of project opportunities fluctuates from year to year, it added.
Distribution per unit edged up by 1.1 per cent to S$0.0268 from S$0.0265. The business trust has a policy to distribute all of its cash available on a semi-annual basis. Depreciation and amortisation expenses increased by S$3.6 million, in line with continued network assets expansion.
Income tax credit dipped by S$1 million due to a reversal of current and deferred tax expenses from finalisation of tax assessments for prior periods. Finance costs were S$500,000 higher, despite a slightly lower average interest rate, largely due to a S$46 million loan drawdown during the period
Net profit for FY2025 stood at S$95.4 million, 7.6 per cent lower compared to FY2024, driven by increased depreciation and amortisation, and higher finance costs. Revenue was S$407 million, 1 per cent lower, primarily due to S$6.2 million lower ancillary project revenue from fewer work orders.
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Joelton
Supreme |
05-Apr-2025 12:03
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CGSI raises NetLink NBN Trust target price to $1, calling it a &lsquo 6% defensive dividend play&rsquo
CGS International analysts Lim Siew Khee and Li Jialin are maintaining &ldquo add&rdquo on NetLink NBN Trust with a higher target price of $1 from 95 cents previously, calling it &ldquo a 6% defensive dividend play to own&rdquo .
NetLink is a &ldquo non-index, liquid play with a steady earnings profile&rdquo , say the CGSI analysts, with &ldquo strong&rdquo distribution per unit (DPU) visibility for FY2025 to FY2027, backed by &ldquo steady growth in operating cashflow&rdquo .
In addition, Lim and Li believe investor interest in NetLink could increase as it was re-included on the Straits Times Index (STI) reserve list in March.
&ldquo With the launch of the $5 billion MAS Equity Market Development Fund, we believe non-index, liquid stocks with stable DPU profiles could be appealing to investors. NetLink&rsquo s 6% dividend yield in FY2025 is on par with S-REITs&rsquo average yield of 6.2%,&rdquo they add.
Residential connections made up 60% of NetLink&rsquo s revenue for 9MFY2025 ended Dec 31, 2024. As the sole provider of residential fibre networks in Singapore, NetLink had some 1.52 million residential connections as of 3QFY2025, 0.7% higher compared to end-FY2024.
In the past three years, NetLink has seen residential connections growing at 1.5% p.a. According to the Housing Development Board (HDB), public housing stock could increase by 1.8% (or approximately 20,000 units) each year from 2021 to 2027.
&ldquo We believe NetLink&rsquo s residential connections will follow the uptrend in housing numbers and it will continue to see stable revenue growth,&rdquo say the CGSI analysts.
NetLink also engages in the diversion, installation and leasing of co-location and central offices to telcos, which are often required in construction, infrastructure and township projects.
According to the Building and Construction Authority (BCA), total construction demand from 2026 to 2029 could reach an average of $39 billion to $46 billion p.a., supported by developments like MRT projects and public housing.
&ldquo We believe this bodes well for NetLink as it grows its non-regulated asset base (non-RAB) revenue through incremental projects and network coverage expansion,&rdquo say the CGSI analysts.
According to Lim and Li, NetLink&rsquo s gearing is likely to hover around 30.6%, with 72% of the debt fixed and cost of debt at 2.72% as of end-2024. NetLink&rsquo s management will refinance some of its existing hedges in FY2026.
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Joelton
Supreme |
07-Mar-2025 11:36
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NetLink NBN Trust to replace ComfortDelGro on STI reserve list
There will be no change to the index&rsquo s constituents
INTERNET service provider NetLink NBN Trust : CJLU 0% will replace transport company ComfortDelGro : C52 +2.11% on the Straits Times Index&rsquo s (STI) reserve list, following the index&rsquo s March 2025 quarterly review.
There will be no change to the STI, said the index&rsquo s administrator, FTSE Russell, on Thursday (Mar 6).
The STI reserve list is made up of the five highest ranking non-constituents of the STI by market capitalisation. Stocks on the reserve list will replace any STI constituents that become ineligible as a result of corporate action before the next review, which will take place in June 2025.
The other four companies on the reserve list are CapitaLand Ascott Trust : HMN +0.58%, Keppel DC Real Estate Investment Trust (Reit) : AJBU -1.9%, Keppel Reit : K71U -0.61% and Suntec Reit : T82U 0%.
The changes take effect at the start of business on Mar 24.
FTSE Russell partners the Singapore Exchange and SPH Media Trust to jointly calculate the STI.
The STI is used as the basis for a range of financial products including exchange-traded funds, warrants, futures and other derivatives.
It is reviewed quarterly in accordance with the index ground rules, and to facilitate the inclusion of eligible initial public offering stocks.
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