Highlights

SGX Stocks and Warrants

Author: kimeng   |   Latest post: Mon, 6 Apr 2020, 2:47 PM

 

SPH REIT: In-line Set of Results

Author:   |    Publish date:


  • High portfolio occupancy rate of 99.3%
  • Positive rental reversions for Singapore portfolio
  • Higher FV estimate of S$1.13

1QFY20 Results Within Expectations

SPH REIT’s 1QFY20 results came in within expectations. Gross revenue grew by S$6.3m or 11.8% YoY to S$60.1m and net property income (NPI) increased by S$5.2m or 12.4% YoY to S$47.0, on the back of higher contributions from Paragon and Figtree Grove Shopping Centre, Australia which was acquired on 21 Dec 2018. DPU reported a growth of 3% YoY to 1.38 S cents, which was inline, at 24% of our initial full-year estimate. Gearing ratio remained healthy at 26.8% and average cost of debt was 2.91% as at 31 August 2019.

Singapore Portfolio Remained Healthy

Overall portfolio committed occupancy remained strong at 99.3%. SPH REIT’s three assets in the Singapore portfolio reported positive rental reversions of 10.9% and high occupancy rate of 99.4%, while Figtree Grove Shopping Centre’s occupancy remained strong at 99.2% in 1QFY20. For Paragon, its rental reversions came in at +10.7%, representing 5.5% of NLA.

For The Clementi Mall and The Rail Mall, they reported positive rental reversions of +10.6% and +12.8% respectively, representing 2.5% and 19.6% of the property’s NLA each. As for NPI, Paragon and The Clementi Mall saw an increase of 5.4% and 3.9% respectively, while The Rail Mall’s NPI remained flat.

Completion of Second Acquisition in Australia

The acquisition of a 50.0% interest in Westfield Marion Shopping Centre, Australia, was completed in Dec 2019. The acquisition was financed through a combination of the proceeds from the S$300m of perpetual securities, proceeds from the private placement of 156,645,000 units at an issue price of S$1.050 per unit and debt. The manager expects DPU accretion of 1.6% for this deal and an implied NPI yield of 5.6%. After factoring this development in our model, our fair value estimate increases slightly from S$1.10 to S$1.13. Maintain HOLD.

Source: OCBC Research - 13 Jan 2020

Share this
Labels: SPHREIT

Related Stocks

Chart Stock Name Last Change Volume 
SPHREIT 0.70 +0.02 (2.94%) 3,956 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
 
 

196  69  103  735 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 IREIT Global 0.52-0.02 
 Rex Intl 0.102+0.007 
 Thomson Medical 0.054+0.008 
 ESR-REIT 0.245-0.005 
 Genting Sing 0.69+0.04 
 CapitaMall Trust 1.62+0.10 
 Medtecs Intl 0.10+0.005 
 SingTel 2.61+0.03 
 ThaiBev 0.635+0.035 
 Mapletree Com Tr 1.58+0.08 
Partners & Brokers