On Jun 13, The Straits Trading Company : S20 -0.68% independent and non-executive director Tan Tiong Cheng acquired 30,000 shares of the company for a consideration of S$90,300, at an average price of S$3.01 per share. This increased his direct interest in the conglomerate-investment company from 0.03 per cent to 0.04 per cent. He is also an independent and non-executive director of UOL Group, the lead independent director of Heeton Holdings, and a non-executive independent director of Amara Holdings.

 

The same session also saw Straits Trading Company independent and non-executive director Chua Tian Chu acquire 7,000 shares of the company at S$3.00 per share.

 

Chua last acquired shares in the company in March, and both directors acquired shares in the company in January. 

 

On Mar 9, The Straits Trading Company Straits Trading: S20 +0.32% independent and non-executive director Chua Tian Chu acquired 5,000 shares of the company with a consideration of S$15,250 at S$3.05 per share.

 

This followed his acquisition of 10,000 shares of the company at S$3.21 per share on Jan 18. Chua maintains a 0.01 per cent total interest in The Straits Trading Company. He was appointed to the board of of the company in January 2018.

CONGLOMERATE The Straits Trading Company reported a net profit of S$234.3 million for the full year ended Dec 31, 2021, higher than the S$51.5 million posted the year before.

 

This was largely due to net fair value gains from investment properties and higher contributions from its wholly owned subsidiary Straits Real Estate and associates and joint ventures from its real estate segment, the group announced on Thursday (Feb 24).

 

The group has proposed a dividend of 8 Singapore cents per share for FY2021, higher than the 6 cents the year before.

 

Revenue was up 28.4 per cent to S$396.6 million for FY202, from S$308.9 million the previous year.

 

Earnings per share worked out to 57.6 Singapore cents per share versus 12.7 cents previously.

 

The group' s real estate segment reported a higher net profit of S$232.7 million compared with S$69.8 million the previous year.

 

This was mainly attributed to fair value gains from the portfolios of Australian and Korean logistics properties under Straits Real Estate, properties in Singapore under Straits Developments and higher contribution from an associate, ARA Asset Management.

 

However, its hospitality segment reported a loss for 2021 as its hospitality associate Far East Hospitality Holdings continues to suffer from the impact of the prolonged pandemic.

 

Its resources arm, Malaysia Smelting Corporation posted a net profit S$20.7 million for FY2021, higher than S$3.3 million for FY2020, bolstered by an increase in tin prices and strong growth in physical tin demand globally.

 

As at Dec 31, 2021, Straits Trading' s net asset value per share stood at S$4.35, higher than the S$3.78 in FY2020.

THE Straits Trading Company is acquiring two freehold office buildings in Australia for about A$150 million (S$143.9 million) through its wholly-owned unit, Straits Real Estate (SRE).

 

The transaction involves 1010 La Trobe Street, 192 Harbour Esplanade, and 163 parking bays in Melbourne - all located in Docklands, which is next to the city' s central business district.

 

1010 La Trobe is a 9-storey, freehold Grade-A office building with net lettable area (NLA) of 15,354 square metres (sq m). It is now fully occupied, with key tenants being the Department of Home Affairs and Victoria Rail Track, a state-owned enterprise that owns all rail and tram lines, land and rail infrastructure of the state of Victoria.

 

192 Harbour Esplanade is a freehold 5-storey Grade-A office building with NLA totalling 5,779 sq m. It is adjacent to 1010 La Trobe and majority-occupied by government-owned enterprise National Broadband Network Company, which manages Australia' s national wholesale broadband network.

 

In a filing to the Singapore Exchange on Friday, Straits Trading said that both properties are supported by strong transport nodes, with a tram station providing quick access to the CBD. The properties are a short walk to the Southern Cross Station, Melbourne' s hub for regional rail lines.

 

It added: " The transaction is in line with the group' s business expansion plans and is reflective of SRE' s confidence in post-Covid recovery of Melbourne commercial real estate.

 

" In addition to strong recurring income, the properties present value-add opportunities, including a planned upgrading at 1010 La Trobe, which will include a new end-of-trip facility, redesigned ground floor lobby and refurbishment of communal facilities on each floor."

 

The transaction will be funded by internal resources and bank borrowings.

 

The company had previously outlined to shareholders its strategy of redeploying capital from its existing property portfolio of high-quality, but low yielding investment properties into potentially higher-return, real estate opportunities through SRE.

 

SRE' s assets under management (AUM) is expected to grow from about S$2.3 billion as at December last year to S$3.5 billion over the next few years, Straits Trading said.

 

Desmond Tang, chief executive of SRE, said that the business will continue to seek opportunities for enhanced returns in key markets.

The Straits Trading Company

 

On Jan 19, The Straits Trading Company Straits Trading: S20 0% independent and non-executive director Tan Tiong Cheng acquired 20,000 shares of the company for a consideration of S$64,000, in a married deal at S$3.20 per share.

 

This increased his direct interest in the conglomerate-investment company from 0.03 per cent to 0.04 per cent.

 

His preceding acquisitions were on Dec 20, with 10,000 shares acquired at S$3.30 per share, between Dec 3 and 7, with 13,200 shares acquired at S$3.38 per share, and on Oct 5 with 30,000 shares acquired at S$3.05 per share.

 

Tan is also an independent and non-executive director of UOL Group, the lead independent director of Heeton Holdings, and a non-executive independent director of Amara Holdings.

 

On Jan 18, The Straits Trading Company independent and non-executive director Chua Tian Chu also acquired 10,000 shares of the company at S$3.21 per share.

 

Chua was appointed to the board of The Straits Trading Company in January 2018.

 

Separately, The Straits Trading Company announced a share placement exercise on Jan 18, to broaden the institutional and individual investor base.

 

The placement shares, representing in aggregate approximately 6.39 per cent of the total existing issued shares of Straits Trading Company, will increase the free float of the stock from approximately 25.33 per cent to 29.82 per cent, and is expected to improve trading liquidity.