Singapore Stock Market News

SPH REIT - Stable but priced in

StockFanatic
Publish date: Tue, 14 Apr 2015, 01:00 PM
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SPH REIT's results were in line, with 2Q/1HFY15 DPUs at 26%/50% of our full-year forecast.

The positives of the results are
1) full occupancy,

2)improved NPI margin from cost savings and

3) 11% portfolio reversion for 10% of the portfolio by NLA.

Moving forward, we expect the portfolio to remain stable with minimal rental reversion for FY8/15 and limited supply of retail space along Orchard Road. Maintain Hold as we believe the positives have been priced in at 1.15 FY15 P/BV and with a 5.1% FY15 dividend yield. We increase our DDM-based target price slightly as we roll forward our valuation.
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