CapitaLand Ascendas REIT (CLAR) - CLAR is executing a S$381.5 million divestment program to enhance its portfolio by selling older properties and reinvesting in newer, higher-yielding assets [2][4] - The sale of 30 Tampines Industrial Avenue 3 was completed for S$23.0 million, achieving a 5% premium to valuation, with additional properties expected to fetch S$306.0 million at a 6% premium [3][4] - The divestment program is expected to yield an average 7% premium to valuation and 17% above acquisition cost, with proceeds reinvested into five new properties worth S$1.3 billion, offering yields of 6-7% [4][6] - CLAR's portfolio occupancy remains stable at 91.3%, with rental reversions of 7.6% in Q3 2025 indicating sustained demand [7] Keppel Ltd - Keppel Ltd has unlocked S$14 billion in asset monetization since 2020, with S$2.4 billion in assets monetized during the first nine months of 2025 [8][9] - The company plans to divest M1's telco business for S$1.3 billion, expected to release close to S$1 billion in cash, while retaining M1's ICT services arm [9] - Keppel's Real Estate division has monetized around S$830 million worth of assets in 2025, with expectations for additional deals exceeding S$500 million [10] - Since 2022, Keppel has returned S$6.6 billion to shareholders, achieving an annualized total shareholder return of 38% [11][12] Mapletree Logistics Trust (MLT) - MLT is pursuing a portfolio rejuvenation strategy, identifying S$1.0 billion worth of older assets for divestment, with a target of S$100 million to S$150 million in divestments for the current financial year [13][14] - The DPU for Q2 FY26 fell 10.5% year on year to S$0.01815, primarily due to the absence of one-off divestment gains [15] - MLT's strategy involves selling assets with limited redevelopment potential and reinvesting in modern logistics facilities to improve long-term demand and rental growth [17] Overall Market Insights - Singapore's blue-chip stocks, including CLAR, Keppel, and MLT, are adapting through capital recycling and portfolio reshaping to prepare for long-term growth [18]

Core Insights - The commercial real estate sector, particularly warehouses, has experienced a slowdown, but recent reports from Prologis indicate a positive outlook and recovery potential for the industry [1][2] Company Performance - Prologis reported a strong quarterly performance that has shifted investor sentiment positively, suggesting that the challenging times may be behind the company [1][2] - The CEO of Prologis described the current market setup as one of the most compelling in 40 years, indicating a significant turnaround in sentiment [2] Market Dynamics - The commercial real estate market saw a rise in vacancy rates from approximately 4% to 7.5% due to overbuilding in anticipation of e-commerce demand during the pandemic [3] - Currently, the market is at a trough, with signs of demand returning, particularly from companies with strong balance sheets [4][5] Supply and Demand - There is an expectation of curtailed supply due to high replacement costs and regulatory opposition to new logistics facilities, which may enhance pricing power for existing properties [4][5] - Prologis has 1.3 billion square feet of space that is expected to benefit from the strengthening market, with active development in logistics and data centers [6] Regional Insights - Leasing momentum is strong globally, with particular excitement in Latin America, where e-commerce is just beginning to take off [7][8] - Nearshoring of manufacturing is benefiting countries like Mexico and Brazil, contributing to increased demand for logistics space [8][9] Data Center Development - Prologis is focusing on data centers, emphasizing the importance of reliable power and the challenges in the supply chain for components needed in these facilities [10][11] - The company has a competitive advantage due to its balance sheet, allowing it to pre-commit to purchasing components, which facilitates faster delivery for customers [12] Renewable Energy Strategy - Prologis has integrated renewable energy solutions into its operations, utilizing underutilized roof space for energy generation, which has proven to be a cost-effective strategy [13][14] - The company is also focusing on on-premise energy generation, which is becoming increasingly important due to environmental constraints on centralized energy production [15] E-commerce Trends - The e-commerce sector is experiencing a multiplier effect, with increasing customer expectations for delivery speed and variety, necessitating more real estate closer to customers [15]

Group 1: Goodman Group (GMG) - Goodman Group's share price has decreased approximately 5.9% since the beginning of 2025, making it the largest ASX-listed property group in 2025 with operations across multiple continents including Australia, New Zealand, the UK, Japan, the US, and Brazil [1] - The company specializes in warehouses, large-scale logistics facilities, and business and office parks, aiming to build long-term relationships with customers and deliver high-quality assets [2] - The current dividend yield for Goodman Group shares is around 0.88%, which is lower than its 5-year average of 1.28%, indicating a potential decline in dividends or an increase in share price [6] Group 2: Sonic Healthcare (SHL) - Sonic Healthcare, listed in April 1987, is one of the largest pathology businesses globally, with operations in Australia, New Zealand, Europe, and North America, offering services such as laboratory medicine, pathology, diagnostic imaging, and corporate medical services [3][4] - The current price-sales ratio for Sonic Healthcare shares is 1.19x, which is below its 5-year long-term average of 1.94x, suggesting that SHL shares may be undervalued [7] - Sonic Healthcare focuses on acting in the best interests of doctors and patients, striving for medical excellence and being a desirable workplace [4]