BY OUR ESTIMATES, developers on the SGX have spent S$242m in 3Q15 to repurchase their shares; this is the highest quarterly figure seen since 2013 and more than eight times the previous high in 4Q13. ![]() We highlight that GLP begun repurchasing its shares on 3 Aug 2015 and have since went into the market 35 times to purchase approximately 96m shares worth S$213m. With its firm balance sheet and significant capital headroom, we believe GLP repurchasing its current shares trading at a 34% discount to its RNAV and 15% discount to book represents an effective use of capital which is accretive to shareholders. Wing Tai similarly entered the market four times in 3Q15 to repurchase S$1.0m of shares after a recent downturn in its share price. ![]() We will view any further share repurchases by both companies near current levels to be firm positives. Maintain BUY on GLP [FV: S$3.07] and Wing Tai [FV: S$2.58]. |