SPH REIT
Market Cap
S$2.9b
Last Updated
2020/02/17 12:56 UTC
Data Sources
Company Financials +
Executive Summary
SPH REIT is a Singapore-based real estate investment trust established principally to invest in a portfolio of income-producing real estate primarily for retail purposes in Asia-Pacific, as well as real estate-related assets.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.2% per year for the next 3 years
Snowflake Analysis
Proven track record and slightly overvalued.
Share Price & News
How has SPH REIT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SK6U has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
SK6U
1.8%
SG REITs
1.4%
SG Market
1 Year Return
3.9%
SK6U
14.1%
SG REITs
-2.4%
SG Market
Return vs Industry: SK6U underperformed the SG REITs industry which returned 14.4% over the past year.
Return vs Market: SK6U exceeded the SG Market which returned -1.8% over the past year.
Shareholder returns
| SK6U | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 1.8% | 1.4% |
| 30 Day | -3.6% | -0.6% | -2.9% |
| 90 Day | -4.5% | 3.7% | -1.1% |
| 1 Year | 9.4%3.9% | 20.8%14.1% | 1.5%-2.4% |
| 3 Year | 29.0%9.8% | 50.9%25.3% | 9.7%-1.9% |
| 5 Year | 33.3%1.4% | 59.7%15.3% | 9.5%-8.9% |
Price Volatility Vs. Market
How volatile is SPH REIT's share price compared to the market and industry in the last 5 years?
Simply Wall St News
7 hours ago | Simply Wall St
Are Insiders Buying SPH REIT (SGX:SK6U) Stock?3 weeks ago | Simply Wall St
Read This Before Judging SPH REIT's (SGX:SK6U) ROE2 months ago | Simply Wall St
Could SPH REIT's (SGX:SK6U) Investor Composition Influence The Stock Price?Valuation
Is SPH REIT undervalued compared to its fair value and its price relative to the market?
36.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SK6U (SGD1.06) is trading below our estimate of fair value (SGD1.66)
Significantly Below Fair Value: SK6U is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SK6U is poor value based on its PE Ratio (18x) compared to the REITs industry average (14.8x).
PE vs Market: SK6U is poor value based on its PE Ratio (18x) compared to the SG market (13.3x).
Price to Earnings Growth Ratio
PEG Ratio: SK6U's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SK6U is overvalued based on its PB Ratio (1x) compared to the SG REITs industry average (1x).
Next Steps
Future Growth
How is SPH REIT forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-0.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SK6U's earnings are forecast to decline over the next 3 years (-0.2% per year).
Earnings vs Market: SK6U's earnings are forecast to decline over the next 3 years (-0.2% per year).
High Growth Earnings: SK6U's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SK6U's revenue (2.1% per year) is forecast to grow slower than the SG market (5.2% per year).
High Growth Revenue: SK6U's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SK6U's Return on Equity is forecast to be low in 3 years time (5.7%).
Next Steps
Past Performance
How has SPH REIT performed over the past 5 years?
-4.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SK6U has high quality earnings.
Growing Profit Margin: SK6U's current net profit margins (65%) are higher than last year (64.6%).
Past Earnings Growth Analysis
Earnings Trend: SK6U's earnings have declined by -4.6% per year over the past 5 years.
Accelerating Growth: SK6U's earnings growth over the past year (11.4%) exceeds its 5-year average (-4.6% per year).
Earnings vs Industry: SK6U earnings growth over the past year (11.4%) exceeded the REITs industry 4.2%.
Return on Equity
High ROE: SK6U's Return on Equity (5.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is SPH REIT's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: SK6U has a high level of physical assets or inventory.
Debt Coverage by Assets: SK6U's debt is not covered by short term assets (assets are 0.4x debt).
Financial Institutions Analysis
Asset Level: SK6U's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if SK6U has a sufficient allowance for bad loans.
Low Risk Liabilities: SK6U reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if SK6U has an acceptable proportion of non-loan assets held.
Low Risk Deposits: SK6U has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if SK6U has an appropriate level of bad loans.
Next Steps
Dividend
What is SPH REIT's current dividend yield, its reliability and sustainability?
5.28%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SK6U's dividend (5.28%) is higher than the bottom 25% of dividend payers in the SG market (2.53%).
High Dividend: SK6U's dividend (5.28%) is low compared to the top 25% of dividend payers in the SG market (5.71%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SK6U has been paying a dividend for less than 10 years.
Growing Dividend: SK6U's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (79.4%), SK6U's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SK6U's dividends in 3 years are not forecast to be well covered by earnings (107.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.1yrs
Average management tenure
CEO
Susan Leng 0
7.1yrs
Tenure
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 Man ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer of SPH REIT Management Pte Ltd. | 7.1yrs | no data | 0.019% SGD561.7k | |
| CFO & Head of Investor Relations of SPH REIT Management Pte Ltd. | 1.1yrs | no data | no data | |
| Investment Manager of SPH REIT Management Pte Ltd | 7.1yrs | no data | no data | |
| Company Secretary of SPH REIT Management Pte. Ltd | 0yrs | no data | no data | |
| Company Secretary of SPH REIT Management Pte. Ltd | 0yrs | no data | no data |
7.1yrs
Average Tenure
Experienced Management: SK6U's management team is seasoned and experienced (7.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Non-Executive & Non-Independent Director of SPH REIT Management Pte. Ltd. | 6.7yrs | S$47.00k | 0.0073% SGD211.9k | |
| Non-Executive & Independent Director of SPH REIT Management Pte. Ltd. | 6.7yrs | S$67.00k | 0.0036% SGD106.1k | |
| Non-Executive & Independent Chairman of SPH REIT Management Pte. Ltd. | 7.1yrs | S$77.00k | 0.018% SGD529.9k | |
| Non-Executive & Non-Independent Director of SPH REIT Management Pte. Ltd. | 2.5yrs | S$47.00k | no data | |
| Non-Executive & Independent Director of SPH REIT Management Pte. Ltd. | 6.7yrs | S$65.00k | 0.0054% SGD159.0k | |
| Non-Independent Non-Executive Director of SPH Reit Management Pte Ltd | 1.3yrs | S$35.38k | no data | |
| Non-Executive & Independent Director of SPH REIT Management Pte. Ltd. | 1.4yrs | S$55.84k | no data |
6.7yrs
Average Tenure
61yo
Average Age
Experienced Board: SK6U's board of directors are considered experienced (6.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SK6U insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
SPH REIT's company bio, employee growth, exchange listings and data sources
Key Information
- Name: SPH REIT
- Ticker: SK6U
- Exchange: SGX
- Founded: 2013
- Industry: Retail REITs
- Sector: Real Estate
- Market Cap: S$2.923b
- Shares outstanding: 2.76b
- Website: https://www.sphreit.com.sg
Location
- SPH REIT
- 1000 Toa Payoh North
- News Centre
- Singapore
- 318994
- Singapore
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SK6U | SGX (Singapore Exchange) | Yes | Trust Units | SG | SGD | Jul 2013 |
| 50E | DB (Deutsche Boerse AG) | Yes | Trust Units | DE | EUR | Jul 2013 |
Biography
SPH REIT is a Singapore-based real estate investment trust established principally to invest in a portfolio of income-producing real estate primarily for retail purposes in Asia-Pacific, as well as real estate-related assets. SPH REIT has a portfolio of five assets in Singapore and Australia. Its portfolio of properties in Singapore comprises a 99-year leasehold interest in Paragon, a 99-year leasehold interest in The Clementi Mall and a 99-year leasehold interest in The Rail Mall. These Singapore properties have an aggregate net lettable area of approximately 960,000 sq. ft. In Australia, SPH REIT owns an 85% stake in Figtree Grove Shopping Centre, a freehold sub-regional shopping centre in Wollongong, New South Wales, Australia. SPH REIT also owns a 50% stake in Westfield Marion Shopping Centre, the largest regional shopping centre in Adelaide, South Australia. Both Australian properties have an aggregate gross lettable area of approximately 1.7 million sq. ft.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 12:56 |
| End of Day Share Price | 2020/02/17 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/08/31 |
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.