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SPH REIT

SGX:SK6U
Snowflake Description

Limited growth unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SK6U
SGX
SGD3B
Market Cap
  1. Home
  2. SG
  3. Real Estate
Company description

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 17 days ago. More info.


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SK6U Share Price and Events
7 Day Returns
-1%
SGX:SK6U
-1.1%
SG REITs
0.3%
SG Market
1 Year Returns
4.5%
SGX:SK6U
2.4%
SG REITs
-6.2%
SG Market
SK6U Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SPH REIT (SK6U) -1% 0% 2% 4.5% 8.9% 5.1%
SG REITs -1.1% -0.1% 4.9% 2.4% 13.4% 11.6%
SG Market 0.3% 3.1% 3.7% -6.2% 8.5% -3%
1 Year Return vs Industry and Market
  • SK6U outperformed the REITs industry which returned 2.4% over the past year.
  • SK6U outperformed the Market in Singapore which returned -6.2% over the past year.
Price Volatility
SK6U
Industry
5yr Volatility vs Market

SK6U Value

 Is SPH REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SPH REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SPH REIT.

SGX:SK6U Discounted Cash Flow Data Sources
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 7.1%
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.

Calculation of Discount Rate/ Cost of Equity for SGX:SK6U
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.54
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.538 (1 + (1- 17%) (40.37%))
0.811
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (0.811 * 5.96%)
7.14%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SGX:SK6U DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 7.14%)
2019 171.00 Analyst x2 159.61
2020 173.90 Analyst x3 151.50
2021 176.50 Analyst x3 143.52
2022 179.48 Est @ 1.69% 136.22
2023 182.84 Est @ 1.87% 129.52
2024 186.50 Est @ 2% 123.31
2025 190.40 Est @ 2.09% 117.50
2026 194.50 Est @ 2.16% 112.04
2027 198.78 Est @ 2.2% 106.87
2028 203.21 Est @ 2.23% 101.98
Present value of next 10 years cash flows SGD1,282.07
SGX:SK6U DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SGD203.21 × (1 + 2.3%) ÷ (7.14% – 2.3%)
SGD4,299.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD4,299.52 ÷ (1 + 7.14%)10
SGD2,157.61
SGX:SK6U Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD1,282.07 + SGD2,157.61
SGD3,439.68
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD3,439.68 / 2,584.36
SGD1.33
SGX:SK6U Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD1.33
Current discount Discount to share price of SGD1.04
= -1 x (SGD1.04 - SGD1.33) / SGD1.33
21.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SPH REIT is available for.
Intrinsic value
22%
Share price is SGD1.04 vs Future cash flow value of SGD1.33
Current Discount Checks
For SPH REIT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SPH REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SPH REIT's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SPH REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SPH REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:SK6U PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-28) in SGD SGD0.05
SGX:SK6U Share Price ** SGX (2019-04-22) in SGD SGD1.04
Singapore REITs Industry PE Ratio Median Figure of 39 Publicly-Listed REITs Companies 13.52x
Singapore Market PE Ratio Median Figure of 328 Publicly-Listed Companies 13.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SPH REIT.

SGX:SK6U PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:SK6U Share Price ÷ EPS (both in SGD)

= 1.04 ÷ 0.05

21.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SPH REIT is overvalued based on earnings compared to the SG REITs industry average.
  • SPH REIT is overvalued based on earnings compared to the Singapore market.
Price based on expected Growth
Does SPH REIT's expected growth come at a high price?
Raw Data
SGX:SK6U PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
10.1%per year
Singapore REITs Industry PEG Ratio Median Figure of 37 Publicly-Listed REITs Companies 2.08x
Singapore Market PEG Ratio Median Figure of 119 Publicly-Listed Companies 1.63x

*Line of best fit is calculated by linear regression .

SGX:SK6U PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.44x ÷ 10.1%

2.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SPH REIT is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on SPH REIT's assets?
Raw Data
SGX:SK6U PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-28) in SGD SGD0.94
SGX:SK6U Share Price * SGX (2019-04-22) in SGD SGD1.04
Singapore REITs Industry PB Ratio Median Figure of 41 Publicly-Listed REITs Companies 0.96x
Singapore Market PB Ratio Median Figure of 432 Publicly-Listed Companies 0.75x
SGX:SK6U PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:SK6U Share Price ÷ Book Value per Share (both in SGD)

= 1.04 ÷ 0.94

1.11x

* Primary Listing of SPH REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SPH REIT is overvalued based on assets compared to the SG REITs industry average.
X
Value checks
We assess SPH REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. SPH REIT has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SK6U Future Performance

 How is SPH REIT expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SPH REIT expected to grow at an attractive rate?
  • SPH REIT's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • SPH REIT's earnings growth is expected to exceed the Singapore market average.
  • SPH REIT's revenue growth is positive but not above the Singapore market average.
Annual Growth Rates Comparison
Raw Data
SGX:SK6U Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:SK6U Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 10.1%
SGX:SK6U Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 3.3%
Singapore REITs Industry Earnings Growth Rate Market Cap Weighted Average -3.1%
Singapore REITs Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.9%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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.

Analysts growth expectations
Raw Data
SGX:SK6U Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:SK6U Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-08-31 242 177 157 5
2020-08-31 237 175 156 6
2019-08-31 229 165 129 6
SGX:SK6U Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-02-28 217 171 125
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SPH REIT's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
  • SPH REIT's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:SK6U Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month 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 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:SK6U Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-08-31 0.05 0.07 0.05 5.00
2020-08-31 0.05 0.07 0.05 5.00
2019-08-31 0.05 0.06 0.05 5.00
SGX:SK6U Past Financials Data
Date (Data in SGD Millions) EPS *
2019-02-28 0.05
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

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SPH REIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SPH REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Singapore market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Singapore market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SPH REIT has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SK6U Past Performance

  How has SPH REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SPH REIT's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SPH REIT's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • SPH REIT's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • SPH REIT's 1-year earnings growth is negative, it can't be compared to the SG REITs industry average.
Earnings and Revenue History
SPH REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SPH REIT Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:SK6U Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-28 216.66 125.14 5.43
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.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SPH REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SPH REIT used its assets less efficiently than the SG REITs industry average last year based on Return on Assets.
  • SPH REIT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SPH REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SPH REIT has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SK6U Health

 How is SPH REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SPH REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SPH REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • SPH REIT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of SPH REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SPH REIT Company Filings, last reported 1 month ago.

SGX:SK6U Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-28 2,441.59 1,095.57 44.99
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
  • SPH REIT's level of debt (44.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.7% vs 44.9% today).
  • Debt is not well covered by operating cash flow (15.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.9x coverage).
X
Financial health checks
We assess SPH REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SPH REIT has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SK6U Dividends

 What is SPH REIT's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.33%
Current annual income from SPH REIT dividends. Estimated to be 5.55% next year.
If you bought SGD2,000 of SPH REIT shares you are expected to receive SGD107 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SPH REIT's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.5%).
  • SPH REIT's dividend is below the markets top 25% of dividend payers in Singapore (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:SK6U Annualized Past and Future Dividends
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 41 Stocks 5.7%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 278 Stocks 3.9%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.6%
Singapore Bottom 25% Dividend Yield 25th Percentile 2.5%
Singapore Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:SK6U Future Dividends Estimate Data
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
SGX:SK6U Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2018-11-08 0.055 5.431
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 >

  • Whilst dividend payments have been stable, SPH REIT has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but SPH REIT only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of SPH REIT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess SPH REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SPH REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SPH REIT has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SK6U Management

 What is the CEO of SPH REIT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Susan Leng
TENURE AS CEO 6.3 years
CEO Bio

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.

CEO Compensation
  • Insufficient data for Susan to compare compensation growth.
  • Insufficient data for Susan to establish whether their remuneration is reasonable compared to companies of similar size in Singapore.
Management Team Tenure

Average tenure of the SPH REIT management team in years:

6.3
Average Tenure
  • The average tenure for the SPH REIT management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Susan Leng

TITLE
Chief Executive Officer of SPH REIT Management Pte Ltd.
TENURE
6.3 yrs

Benjamin Kuah

TITLE
CFO & Head of Investor Relations of SPH REIT Management Pte Ltd.
TENURE
0.3 yrs

Belinda Zheng

TITLE
Investment Manager of SPH REIT Management Pte Ltd
TENURE
6.3 yrs

Wai Pun Lim

TITLE
Company Secretary of SPH REIT Management Pte Ltd

Siew Kim Khor

TITLE
Company Secretary of SPH REIT Management Pte Ltd

Long Loh

TITLE
Head of Facilities & Project Management - SPH Retail Property Management Services Pte Ltd
Board of Directors Tenure

Average tenure and age of the SPH REIT board of directors in years:

5.8
Average Tenure
60
Average Age
  • The tenure for the SPH REIT board of directors is about average.
Board of Directors

Horn Kee Leong

TITLE
Chairman of the Board of SPH REIT Management Pte. Ltd.
COMPENSATION
SGD77K
AGE
66
TENURE
6.3 yrs

Tit Koon Soon

TITLE
Non-Executive & Independent Director of SPH REIT Management Pte. Ltd.
COMPENSATION
SGD67K
AGE
67
TENURE
5.8 yrs

David Chia

TITLE
Independent Director of SPH REIT Management Pte. Ltd.
COMPENSATION
SGD65K
AGE
63
TENURE
5.8 yrs

Ginney Lim

TITLE
Non-Executive & Non-Independent Director of SPH REIT Management Pte. Ltd.
COMPENSATION
SGD47K
AGE
57
TENURE
5.8 yrs

Yat Chung Ng

TITLE
Non-Executive & Non-Independent Director of SPH REIT Management Pte. Ltd.
COMPENSATION
SGD47K
AGE
56
TENURE
1.7 yrs

Sheau-Farn Hoo

TITLE
Non-Executive & Independent Director of SPH REIT Management Pte. Ltd.
TENURE
0.6 yrs

Hwee Song Chua

TITLE
Non-Independent Non-Executive Director of SPH Reit Management Pte Ltd
AGE
50
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
X
Management checks
We assess SPH REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SPH REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SK6U News

Simply Wall St News

What Kind Of Shareholders Own SPH REIT (SGX:SK6U)?

A look at the shareholders of SPH REIT (SGX:SK6U) can tell us which group is most powerful. … Taking a look at our data on the ownership groups (below), it's seems that. … Let's take a closer look to see what the different types of shareholder can tell us about SK6U

Simply Wall St -

What You Need To Know Before Investing In SPH REIT (SGX:SK6U)

real estate investment trust (REIT) based in Singapore, Singapore. … 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 … For SK6U, its FFO of S$165m makes up 108% of its gross profit,

Simply Wall St -

Why SPH REIT’s (SGX:SK6U) Cash Is A Factor You Need To Consider

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 -

A Note On SPH REIT's (SGX:SK6U) ROE and Debt To Equity

While 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 -

SPH REIT (SGX:SK6U): Poised For Long-Term Success?

SPH REIT's (SGX:SK6U) most recent earnings update in August 2018a … signalled … business

Simply Wall St -

Do Institutions Own Shares In SPH REIT (SGX:SK6U)?

Large 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 -

SPH REIT (SGX:SK6U): Set To Experience A Decrease In Earnings?

As 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 -

One Metric To Rule Them All: SPH REIT (SGX:SK6U)

real 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 -

SPH REIT (SGX:SK6U) Has A ROE Of 6.4%

While 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 -

Does SPH REIT (SGX:SK6U) Generate Enough Cash?

If 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 -

SK6U Company Info

Description

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. SPH REIT has a portfolio of four assets in Singapore and Australia. Its portfolio of properties in Singapore 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 99-year leasehold interest in The Rail Mall commencing on 18 March 1947. Valued at S$3.368 billion as at August 2018 with an aggregate net lettable area of approximately 960,000 sq. ft. In Australia, SPH REIT owns a 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 as at October 2018 with an aggregate gross lettable area of approximately 236,000 sq. ft.

Details
Name: SPH REIT
SK6U
Exchange: SGX
Founded: 2013
SGD2,713,582,794
2,584,364,566
Website: http://www.sphreit.com.sg
Address: SPH REIT
1000 Toa Payoh North,
News Centre,
Singapore,
318994,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX SK6U Trust Units Singapore Exchange SG SGD 24. Jul 2013
Number of employees
Current staff
Staff numbers
0
SPH REIT employees.
Industry
Retail REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 12:58
End of day share price update: 2019/04/22 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/04/05
Last earnings reported: 2019/02/28
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.