Temasek’s Mapletree posts first loss since 2004 on office slump

Bloomberg
·1-min read
FILE PHOTO: Signage for Mapletree Investments Pte is displayed atop the company's building in Mapletree Business City in Singapore, on Thursday, June 13, 2019. Revenue edged down to S$2.8 billion. (Photo: Wei Leng Tay/Bloomberg)
FILE PHOTO: Signage for Mapletree Investments Pte is displayed atop the company's building in Mapletree Business City in Singapore, on Thursday, June 13, 2019. Revenue edged down to S$2.8 billion. (Photo: Wei Leng Tay/Bloomberg)

By Low De Wei

(Bloomberg) — Mapletree Investments Pte, a real estate firm owned by Singapore state investor Temasek Holdings Pte, recorded a loss for the first time in two decades, after bearing the brunt of a global commercial property downturn.

The loss was S$577.2 million ($428 million) for the fiscal year ended in March after accounting for tax and non-controlling interests, reversing a S$1.2 billion profit from a year earlier. Revenue edged down to S$2.8 billion.

The firm said prolonged work-from-home trends hit commercial properties in most Western markets, hurting its office portfolio in the US, Europe and Australia. A hike in interest rates also led to revaluation losses. The Singapore-based firm is the latest in a line of major property investors that are suffering from the downturn in global commercial properties.

It last recorded a net loss in the fiscal year that ended in March 2004.

While the company has pivoted to markets including Japan, a sizable chunk of Mapletree’s S$77.5 billion assets under management are in North America and China.

Mapletree said it will prioritize core sectors including logistics, student housing, data centers and offices, and start more development funds. It will also explore opportunities to acquire prime office space in gateway cities that are less affected by remote work.

©2024 Bloomberg L.P.

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Apple's China smartphone shipments drop 6.7% as Huawei surges, data shows

    BEIJING (Reuters) -Apple's smartphone shipments in China fell by 6.7% in the second quarter of 2024, as the tech giant faced intensifying competition from rivals like Huawei, according to data from market research firm Canalys. Apple's total shipments for the quarter ending in June stood at 9.7 million units, down from 10.4 million units in the same quarter last year, Canalys data shows. In contrast, Huawei's smartphone shipments surged 41% year-on-year to 10.6 milion in the quarter, bolstered by the launch of its new Pura 70 series in April.

  • Broadcom Inc. (AVGO) Suffers a Larger Drop Than the General Market: Key Insights

    Broadcom Inc. (AVGO) closed at $149.26 in the latest trading session, marking a -1.37% move from the prior day.

  • TSMC leads chipmaker plunge as trade resumes after typhoon pause

    Taiwanese giant TSMC tumbled with several other leading chip makers Friday as traders returned from a typhoon-imposed two-day break to play catch-up with a global tech rout.The rally in all things tech helped TSMC, which is also listed in New York, to briefly break the US$1 trillion market capitalisation barrier this month, putting it ahead of Tesla as the seventh most valuable technology firm. 

  • Compared to Estimates, MarineMax (HZO) Q3 Earnings: A Look at Key Metrics

    Although the revenue and EPS for MarineMax (HZO) give a sense of how its business performed in the quarter ended June 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

  • Biggest US tech sell-off for over a decade reflects impatience over AI profits

    The Nasdaq and S&P 500 have suffered their worst single-day decline since 2022 - led by underwhelming financial results from Tesla and Alphabet, the owner of Google. The sell-off points to wider concerns surrounding the high valuations of a handful of tech giants, and how vulnerable the wider US market is to their fate. The so-called "magnificent seven" of high-performing tech stocks are Microsoft, Amazon, Google Parent - Alphabet - Tesla, Facebook (aka Meta), Nvidia, and Apple.

  • Fed's preferred inflation gauge shows prices rose at slowest pace since March 2021

    The latest reading on the Fed Reserve's preferred inflation gauge comes just days before the Fed's next policy meeting as investors look for clues on when interest rate cuts might begin.

  • Investors Heavily Search Baidu, Inc. (BIDU): Here is What You Need to Know

    Baidu Inc. (BIDU) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

  • Capgemini forecasts surprise revenue fall on automotive, aerospace downturn

    French IT group Capgemini forecast a surprise fall in annual revenue on Friday, citing a downturn in the automotive and aerospace sectors, sending its shares tumbling more than 9%. Shares of Capgemini fell 9.4% by 0728 GMT to hit the bottom of the CAC40 index, after the Paris-based group said it now expects its organic sales to fall between 0.5% and 1.5% in 2024, compared with the 0-3% rise previously forecast. "The slope of recovery in the second half will be affected by the recent deterioration of the outlook in the automotive and aerospace sectors and the slower recovery in financial services," CEO Aiman Ezzat said in a statement.

  • Automakers hit 'significant storm,' as buyers reject lofty prices at time of huge capital outlays

    Investors are punishing automakers' stocks this week after second-quarter earnings reports exposed industrywide issues of slowing sales and high prices, just as the companies are having to spend huge sums to make new electric and gas vehicles. Ford Motor Co., which reported a drop in second-quarter earnings due electric-vehicle losses and persistently high warranty costs, led the declines. Carlos Tavares, CEO of Jeep and Ram maker Stellantis, said a significant auto-industry storm he's been warning about for several years has arrived.

  • Revolut secures UK banking licence after three-year wait

    A licence means the company will be able to hold customer deposits, and offer lending products like credit cards, personal loans, or mortgages.

  • Columbia Banking (COLB) Q2 Earnings Top Estimates

    Columbia Banking (COLB) delivered earnings and revenue surprises of 17.54% and 0.56%, respectively, for the quarter ended June 2024. Do the numbers hold clues to what lies ahead for the stock?

  • 3 BlackRock Mutual Funds to Buy With Rate Cuts on the Horizon

    Invest in BlackRock mutual funds like BMCAX, BATPX and MRBVX for high returns and risk reduction as the first rate cut appears on the horizon.

  • Should Vanguard Russell 1000 ETF (VONE) Be on Your Investing Radar?

    Style Box ETF report for VONE

  • Singapore home prices slow, rents fall in cooling market

    Singapore private home prices rose less than estimated and rents edged down in the second quarter, following government efforts to tame the real estate boom.

  • Altria (MO) Hits 52-Week High: Time to Cash In or Hold Steady?

    Altria's (MO) strategic moves into smoke-free products offer growth potential, though the declining cigarette business raises concerns.

  • Insured losses from CrowdStrike outage could reach $1.5 billion, CyberCube says

    Global insured losses from last week's massive IT outage are likely to range from $400 million to $1.5 billion, cyber analytics firm CyberCube said on Thursday. A software bug in cyber security firm CrowdStrike's quality-control system caused the software update that crashed computers globally, the U.S. firm said this week, as losses mount following disruption to services from aviation to banking. The outage may be the single largest cyber insurance loss, CyberCube said in a statement.

  • What's Going on With the Mag 7?

    While the stocks have faced pressure as of late, their fundamentals remain strong beneath the hood, with outlooks also remaining positive.

  • US economy grows faster than expected in Q2, GDP rises 2.8%

    The US economy grew faster than expected in the second quarter, as GDP rose at an annualized pace of 2.8% compared to the estimated 2%. Yahoo Finance Markets Reporter Josh Schafer breaks down the print and what it signals about the overall state inflation as the Federal Reserve eyes a September interest rate cut. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl

  • Earnings Preview: Redwood Trust (RWT) Q2 Earnings Expected to Decline

    Redwood Trust (RWT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • All You Need to Know About Banco Santander (SAN) Rating Upgrade to Strong Buy

    Banco Santander (SAN) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).