Loading...
SPH REIT is a Singapore-based real estate investment trust established principally to invest, directly or indirectly, in a portfolio of income-producing real estate which is used primarily for retail purposes in Asia-Pacific, as well as real estate-related assets. The last earnings update was 45 days ago. More info.
7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
---|---|---|---|---|---|---|
SPH REIT (SK6U) | 0% | 1% | 3% | 2% | 9.1% | 5.2% |
SG REITs | -0.5% | 2.3% | 8% | 1.9% | 16.2% | 14.9% |
SG Market | 0.8% | 1% | 5.4% | -6.8% | 15% | -1.5% |
Is SPH REIT undervalued based on future cash flows and its price relative to the stock market?
Below are the data sources, inputs and calculation used to determine the intrinsic value for SPH REIT.
Data Point | Source | Value |
---|---|---|
Valuation Model | 2 Stage Free Cash Flow to Equity | |
Levered Free Cash Flow | Average of 7 Analyst Estimates (S&P Global) | See below |
Discount Rate (Cost of Equity) | See below | 8.5% |
Perpetual Growth Rate | 10-Year SG Government Bond Rate | 2.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
Data Point | Calculation/ Source | Result |
---|---|---|
Risk-Free Rate | 10-Year SG Govt Bond Rate | 2.3% |
Equity Risk Premium | S&P Global | 7.7% |
REITs Unlevered Beta | Simply Wall St/ S&P Global | 0.37 |
Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.366 (1 + (1- 17%) (33.97%)) |
0.469 |
Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (0.8 * 7.7%) |
8.46% |
Discounted Cash Flow Calculation for SGX:SK6U using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for SPH REIT is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
2019 | 2020 | 2021 | 2022 | 2023 | |
Levered FCF (SGD, Millions) | 170.99 | 173.92 | 176.58 | 182.13 | 187.87 |
Source | Analyst x2 | Analyst x3 | Analyst x3 | Est @ 3.15% | Est @ 3.15% |
Present Value Discounted (@ 8.46%) |
157.65 | 147.85 | 138.39 | 131.61 | 125.17 |
Present value of next 5 years cash flows | SGD700.68 |
Calculation | Result | |
---|---|---|
Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= SGD187.87 × (1 + 2.3%) ÷ (8.46% – 2.3%) |
SGD3,121.25 |
Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= SGD3,121.25 ÷ (1 + 8.46%)5 |
SGD2,079.55 |
Calculation | Result | |
---|---|---|
Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= SGD700.68 + SGD2,079.55 |
SGD2,780.23 |
Equity Value per Share (SGD) |
= Total value / Shares Outstanding
= SGD2,780.23 / 2,584.36 |
SGD1.08 |
Calculation | Result | |
---|---|---|
Value per share (SGD) | From above. | SGD1.08 |
Current discount | Discount to share price of
SGD1.02
= -1 x (SGD1.02 - SGD1.08) / SGD1.08 |
5.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Data Point | Source | Value |
---|---|---|
Earnings Per Share * | Company Filings (2018-11-30) in SGD | SGD0.05 |
SGX:SK6U Share Price ** | SGX (2019-02-18) in SGD | SGD1.02 |
Singapore REITs Industry PE Ratio | Median Figure of 39 Publicly-Listed REITs Companies | 13.22x |
Singapore Market PE Ratio | Median Figure of 328 Publicly-Listed Companies | 11.83x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of SPH REIT.
Calculation | Outcome | |
---|---|---|
PE Ratio | = SGX:SK6U Share Price ÷ EPS (both in SGD) = 1.02 ÷ 0.05 |
19.16x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Data Point | Source | Value |
---|---|---|
PE Ratio | See PE Ratio Section | 19.16x |
Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts |
8.6%per year |
Singapore REITs Industry PEG Ratio | Median Figure of 36 Publicly-Listed REITs Companies | 1.16x |
Singapore Market PEG Ratio | Median Figure of 128 Publicly-Listed Companies | 1.35x |
*Line of best fit is calculated by linear regression .
Calculation | Outcome | |
---|---|---|
PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 19.16x ÷ 8.6% |
2.23x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Data Point | Source | Value |
---|---|---|
Book Value per Share | Company Filings (2018-11-30) in SGD | SGD0.94 |
SGX:SK6U Share Price * | SGX (2019-02-18) in SGD | SGD1.02 |
Singapore REITs Industry PB Ratio | Median Figure of 40 Publicly-Listed REITs Companies | 0.95x |
Singapore Market PB Ratio | Median Figure of 434 Publicly-Listed Companies | 0.73x |
Calculation | Outcome | |
---|---|---|
PB Ratio | = SGX:SK6U Share Price ÷ Book Value per Share (both in SGD) = 1.02 ÷ 0.94 |
1.08x |
* Primary Listing of SPH REIT.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
How is SPH REIT expected to perform in the next 1 to 3 years based on estimates from 7 analysts?
Data Point | Source | Value (per year) |
---|---|---|
SGX:SK6U Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts | 8.6% |
SGX:SK6U Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts | 3.7% |
Singapore REITs Industry Earnings Growth Rate | Market Cap Weighted Average | -3.9% |
Singapore REITs Industry Revenue Growth Rate | Market Cap Weighted Average | 2.9% |
Singapore Market Earnings Growth Rate | Market Cap Weighted Average | 4.6% |
Singapore Market Revenue Growth Rate | Market Cap Weighted Average | 4.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Data Point | Source | Value |
---|---|---|
Past Financials | Company Filings (2 months ago) | See Below |
Future Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
Date (Data in SGD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
---|---|---|---|---|
2021-08-31 | 242 | 181 | 157 | 5 |
2020-08-31 | 235 | 171 | 155 | 6 |
2019-08-31 | 228 | 161 | 128 | 6 |
Date (Data in SGD Millions) | Revenue | Cash Flow | Net Income * |
---|---|---|---|
2018-11-30 | 212 | 170 | 137 |
2018-08-31 | 212 | 165 | 138 |
2018-05-31 | 212 | 161 | 156 |
2018-02-28 | 213 | 160 | 157 |
2017-11-30 | 214 | 159 | 158 |
2017-08-31 | 213 | 165 | 157 |
2017-05-31 | 212 | 164 | 133 |
2017-02-28 | 211 | 163 | 131 |
2016-11-30 | 210 | 165 | 129 |
2016-08-31 | 210 | 160 | 128 |
2016-05-31 | 208 | 163 | 154 |
2016-02-29 | 207 | 161 | 154 |
*GAAP earnings excluding extraordinary items.
Data Point | Source | Value |
---|---|---|
Past Financials | Company Filings (2 months ago) | See Below |
Future Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
All data from SPH REIT Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
Date (Data in SGD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
---|---|---|---|---|
2021-08-31 | 0.05 | 0.05 | 0.05 | 4.00 |
2020-08-31 | 0.05 | 0.05 | 0.05 | 4.00 |
2019-08-31 | 0.05 | 0.05 | 0.05 | 4.00 |
Date (Data in SGD Millions) | EPS * |
---|---|
2018-11-30 | 0.05 |
2018-08-31 | 0.05 |
2018-05-31 | 0.06 |
2018-02-28 | 0.06 |
2017-11-30 | 0.06 |
2017-08-31 | 0.06 |
2017-05-31 | 0.05 |
2017-02-28 | 0.05 |
2016-11-30 | 0.05 |
2016-08-31 | 0.05 |
2016-05-31 | 0.06 |
2016-02-29 | 0.06 |
*GAAP earnings excluding extraordinary items.
How has SPH REIT performed over the past 5 years?
All data from SPH REIT Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
Date (Data in SGD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
---|---|---|---|---|
2018-11-30 | 212.13 | 137.13 | 5.23 | |
2018-08-31 | 211.80 | 137.86 | 5.20 | |
2018-05-31 | 211.69 | 155.91 | 5.57 | |
2018-02-28 | 213.24 | 157.34 | 5.62 | |
2017-11-30 | 213.66 | 157.85 | 5.67 | |
2017-08-31 | 212.76 | 157.16 | 5.71 | |
2017-05-31 | 212.08 | 132.99 | 5.91 | |
2017-02-28 | 211.00 | 131.02 | 5.93 | |
2016-11-30 | 210.08 | 128.82 | 5.94 | |
2016-08-31 | 209.59 | 127.57 | 5.96 | |
2016-05-31 | 208.21 | 154.43 | 6.80 | |
2016-02-29 | 207.21 | 154.07 | 6.80 | |
2015-11-30 | 206.57 | 154.76 | 6.80 | |
2015-08-31 | 205.11 | 153.53 | 6.79 | |
2015-05-31 | 194.23 | 199.32 | 6.37 | |
2015-02-28 | 193.40 | 198.40 | 6.45 | |
2014-11-30 | 171.31 | 185.56 | 6.41 | |
2014-08-31 | 191.08 | 195.40 | 6.52 | |
2013-02-28 | 191.90 | 104.09 | 7.35 | |
2012-11-30 | 189.83 | 102.43 | 7.35 | |
2012-08-31 | 187.76 | 100.78 | 7.35 |
*GAAP earnings excluding extraordinary items.
How is SPH REIT's financial health and their level of debt?
All data from SPH REIT Company Filings, last reported 2 months ago.
Date (Data in SGD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
---|---|---|---|
2018-11-30 | 2,438.16 | 895.39 | 35.23 |
2018-08-31 | 2,438.95 | 895.89 | 35.97 |
2018-05-31 | 2,426.52 | 850.31 | 51.43 |
2018-02-28 | 2,426.94 | 851.67 | 58.80 |
2017-11-30 | 2,422.57 | 853.95 | 58.14 |
2017-08-31 | 2,421.06 | 855.41 | 63.01 |
2017-05-31 | 2,390.88 | 855.18 | 66.22 |
2017-02-28 | 2,393.82 | 853.00 | 66.66 |
2016-11-30 | 2,391.45 | 852.54 | 67.59 |
2016-08-31 | 2,388.53 | 855.78 | 67.38 |
2016-05-31 | 2,387.27 | 850.20 | 72.68 |
2016-02-29 | 2,391.71 | 847.29 | 75.80 |
2015-11-30 | 2,393.40 | 845.40 | 73.13 |
2015-08-31 | 2,397.81 | 844.90 | 77.72 |
2015-05-31 | 2,354.36 | 848.89 | 80.09 |
2015-02-28 | 2,355.69 | 849.27 | 86.86 |
2014-11-30 | 2,349.53 | 853.48 | 88.39 |
2014-08-31 | 2,353.07 | 851.88 | 90.66 |
2013-02-28 | 2,231.72 | 840.89 | 43.57 |
2012-11-30 | 2,231.72 | 840.89 | 43.57 |
2012-08-31 | 2,231.72 | 840.89 | 42.39 |
What is SPH REIT's current dividend yield, its reliability and sustainability?
Data Point | Source | Value |
---|---|---|
Past Annualized Dividend Yield | S&P Global Market Data | See Below |
Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
Future Dividends per Share Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
Singapore REITs Industry Average Dividend Yield | Market Cap Weighted Average of 40 Stocks | 5.8% |
Singapore Market Average Dividend Yield | Market Cap Weighted Average of 289 Stocks | 3.9% |
Singapore Minimum Threshold Dividend Yield | 10th Percentile | 1.5% |
Singapore Bottom 25% Dividend Yield | 25th Percentile | 2.5% |
Singapore Top 25% Dividend Yield | 75th Percentile | 6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
Date (Data in SGD) | Dividend per Share (annual) | Avg. No. Analysts |
---|---|---|
2021-08-31 | 0.06 | 5.00 |
2020-08-31 | 0.06 | 7.00 |
2019-08-31 | 0.06 | 7.00 |
Date (Data in SGD) | Dividend per share (annual) | Avg. Yield (%) |
---|---|---|
2018-11-08 | 0.055 | 5.491 |
2018-10-11 | 0.055 | 5.586 |
2017-11-08 | 0.055 | 5.487 |
2017-10-09 | 0.055 | 5.459 |
2016-11-10 | 0.055 | 5.616 |
2016-10-06 | 0.055 | 5.595 |
2015-11-11 | 0.055 | 5.781 |
2015-10-12 | 0.055 | 5.743 |
2014-11-11 | 0.054 | 5.273 |
2014-10-13 | 0.054 | 5.137 |
2014-04-08 | 0.056 | 5.361 |
2014-01-09 | 0.052 | 5.302 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Ms. Mee Yin Leng, also known as Susan, has been the Chief Executive Officer of SPH REIT Management Pte Ltd - Manager at SPH REIT since 2013. Prior to joining the Manager, Ms. Leng served as the General Manager at Capitol Investment Holdings Pte. Ltd., a joint venture between Perennial (Capitol) Pte. Ltd., Chesham Properties Pte. Ltd. and Top Property Investment Pte. Ltd., from 2011 to 2012. She was responsible for the overall management of the joint venture company which won the tender to redevelop the historical site of Capitol Theatre, Capitol Building and Stamford House into an integrated mixed-use development with residential, hotel and retail components. She has 16 years of shopping centre and property development experience and eight years of accounting and finance experience. She began her career as an Auditor at Coopers & Lybrand and her last appointment was Accounting Manager with Scotts Holdings Limited before she made a career change to shopping centre management in 1992. She served as the General Manager of Scotts Shopping Centre and Director of Retail Management at Far East Organisation. She served as also the General Manager of Orchard 290 Ltd., from 1997 to 2004. She was a Pioneer Member of the management team which redeveloped Paragon and The Promenade into one fully integrated high-end premier shopping mall with a prestigious office and medical tower. Ms. Leng is a Fellow of the Chartered Association of Certified Accountants (FCCA), UK.
Average tenure of the SPH REIT management team in years:
Average tenure and age of the SPH REIT board of directors in years:
SPH REIT (SGX:SK6U) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … Today we will examine SPH REIT’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … SPH REIT generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating
Simply Wall St - – Full articleWhile some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every SGD1 worth of equity in the company, it was able to earn SGD0.056. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleSPH REIT's (SGX:SK6U) most recent earnings update in August 2018a … signalled … business
Simply Wall St - – Full articleLarge companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at the our data on the ownership groups (below), it's seems that.
Simply Wall St - – Full articleAs SPH REIT (SGX:SK6U) announced its recent earnings release on 31 August 2018, … analyst consensus outlook appear … with profits predicted to drop by -6.3% next year.
Simply Wall St - – Full articlereal estate investment trust (REIT) based in Singapore, Singapore. … A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent … FFO is a cleaner and more representative figure of how much SK6U actually makes from its day-to-day operations, compared to net income, which can be affected by one-off activities or non-cash items such as depreciation.
Simply Wall St - – Full articleWhile some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every SGD1 worth of shareholders' equity, it generated SGD0.064 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIf you are currently a shareholder in SPH REIT (SGX:SK6U), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … SPH REIT generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … There are two methods I will use to evaluate the quality of SPH REIT’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability
Simply Wall St - – Full articleSPH REIT is a S$2.54b. … real estate investment trust (REIT) based in Singapore, Singapore. … REIT shares give you ownership of the company than owns and manages various income-producing property, whether it be commercial, industrial or residential.
Simply Wall St - – Full articleand want to begin learning the link between SPH REIT (SGX:SK6U)’s return fundamentals and stock market performance. … SPH REIT (SGX:SK6U) delivered an ROE of 6.48% over the past 12 months, which is relatively in-line with its industry average of 7.25% during the same period. … But what is more interesting is whether SK6U can sustain or improve on this level of return
Simply Wall St - – Full article
SPH REIT is a Singapore-based real estate investment trust established principally to invest, directly or indirectly, in a portfolio of income-producing real estate which is used primarily for retail purposes in Asia-Pacific, as well as real estate-related assets. Its portfolio of properties comprises a 99-year leasehold interest in Paragon commencing on 24 July 2013, a 99-year leasehold interest in The Clementi Mall commencing on 31 August 2010 and a leasehold interest in The Rail Mall with remaining lease tenure of about 28 years. Valued at S$3.368 billion with an aggregate net lettable area of approximately 960,000 sq. ft, the properties have a committed occupancy of 99.2% and have a diverse and high quality tenant base of about 500 local and international retailers and medical specialists. On 21 December 2018, SPH REIT completed the acquisition of 85% stake in Figtree Grove Shopping Centre, a freehold sub-regional shopping centre in Wollongong, New South Wales, Australia. Valued at A$206.0 million with an aggregate gross lettable area of approximately 236,000 sq. ft, the property has a committed occupancy of 98.5%.
Name: | SPH REIT |
SK6U | |
Exchange: | SGX |
Founded: | 2013 |
SGD2,636,051,857 | |
2,584,364,566 | |
Website: | http://www.sphreit.com.sg |
Address: |
SPH REIT 1000 Toa Payoh North, News Centre, Singapore, 318994, Singapore |
Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
---|---|---|---|---|---|---|---|
SGX | SK6U | Trust Units | Singapore Exchange | SG | SGD | 24. Jul 2013 |
Retail REITs | |
Real Estate |
Area | Date (UTC time) |
---|---|
Company Analysis updated: | 2019/02/18 13:01 |
End of day share price update: | 2019/02/18 00:00 |
Last estimates confirmation: | 2019/01/10 |
Last earnings filing: | 2019/01/04 |
Last earnings reported: | 2018/11/30 |
Last annual earnings reported: | 2018/08/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.