SGX:SK6U

Stock Analysis Report

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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. More Details


Snowflake Analysis

Second-rate dividend payer with moderate growth potential.

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 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SK6U's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

SK6U

-0.2%

SG REITs

1.3%

SG Market


1 Year Return

-13.9%

SK6U

-13.0%

SG REITs

-1.6%

SG Market

Return vs Industry: SK6U matched the SG REITs industry which returned -13% over the past year.

Return vs Market: SK6U underperformed the SG Market which returned -1.6% over the past year.


Shareholder returns

SK6UIndustryMarket
7 Day1.2%-0.2%1.3%
30 Day1.2%-3.6%2.2%
90 Day1.2%-0.2%6.6%
1 Year-11.3%-13.9%-8.4%-13.0%3.5%-1.6%
3 Year-3.8%-16.1%17.3%-2.3%-7.2%-18.6%
5 Year12.1%-12.6%45.6%7.6%17.0%-4.4%

Long-Term 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

Valuation

Is SPH REIT undervalued compared to its fair value and its price relative to the market?

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SK6U (SGD0.84) is trading below our estimate of fair value (SGD1.34)

Significantly Below Fair Value: SK6U is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SK6U is unprofitable, so we can't compare its PE Ratio to the SG REITs industry average.

PE vs Market: SK6U is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SK6U's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SK6U's PB Ratio (0.8x) is in line with the SG REITs industry average.


Next Steps

Future Growth

How is SPH REIT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SK6U is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SK6U is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SK6U's is expected to become profitable in the next 3 years.

Revenue vs Market: SK6U's revenue (3.8% per year) is forecast to grow slower than the SG market (9.1% per year).

High Growth Revenue: SK6U's revenue (3.8% 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 (5.8%).


Next Steps

Past Performance

How has SPH REIT performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SK6U is currently unprofitable.

Growing Profit Margin: SK6U is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SK6U is unprofitable, and losses have increased over the past 5 years at a rate of 11.5% per year.

Accelerating Growth: Unable to compare SK6U's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SK6U is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-29.3%).


Return on Equity

High ROE: SK6U has a negative Return on Equity (-2.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is SPH REIT's financial position?


Financial Position Analysis

Short Term Liabilities: SK6U's short term assets (SGD114.6M) do not cover its short term liabilities (SGD295.5M).

Long Term Liabilities: SK6U's short term assets (SGD114.6M) do not cover its long term liabilities (SGD1.1B).


Debt to Equity History and Analysis

Debt Level: SK6U's debt to equity ratio (46.5%) is considered high.

Reducing Debt: SK6U's debt to equity ratio has increased from 35.2% to 46.5% over the past 5 years.

Debt Coverage: SK6U's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: SK6U is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SK6U's dividend (3.26%) is higher than the bottom 25% of dividend payers in the SG market (1.88%).

High Dividend: SK6U's dividend (3.26%) is low compared to the top 25% of dividend payers in the SG market (4.82%).


Stability and Growth of Payments

Stable Dividend: SK6U has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SK6U has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65%), SK6U's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SK6U's dividends in 3 years are forecast to be covered by earnings (93.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Susan Leng

8.17yrs

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

NamePositionTenureCompensationOwnership
Mee Yin Leng
Chief Executive Officer of SPH REIT Management Pte Ltd.8.17yrsno data0.022%
SGD 515.6k
Hsien Yiao Kuah
CFO & Head of Investor Relations of SPH REIT Management Pte Ltd.2.17yrsno datano data
Qinyin Zheng
Investment Manager of SPH REIT Management Pte Ltd8.17yrsno datano data
Ya Li Cher
Company Secretary of SPH REIT Management Pte. Ltdno datano datano data

8.2yrs

Average Tenure

Experienced Management: SK6U's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
May Ling Lim
Non-Executive & Non-Independent Director of SPH REIT Management Pte. Ltd.7.75yrsS$44.65k0.0072%
SGD 168.1k
Tit Koon Soon
Non-Executive & Independent Director of SPH REIT Management Pte. Ltd.7.75yrsS$63.65k0.0036%
SGD 84.0k
Horn Kee Leong
Non-Executive & Independent Chairman of SPH REIT Management Pte. Ltd.8.17yrsS$73.15kno data
Yat Chung Ng
Non-Executive & Non-Independent Director of SPH REIT Management Pte. Ltd.3.58yrsS$44.65kno data
Hwee Song Chua
Non-Independent Non-Executive Director of SPH Reit Management Pte Ltd2.33yrsS$44.65kno data
Sheau Farn Hoo
Non-Executive & Independent Director of SPH REIT Management Pte. Ltd.2.5yrsS$57.00kno data
Soh Loh
Non-Executive & Independent Director SPH REIT Management Pte Ltd.1.17yrsno datano data

3.6yrs

Average Tenure

59yo

Average Age

Experienced Board: SK6U's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$2.334b
  • Shares outstanding: 2.78b
  • Website: https://www.sphreit.com.sg

Location

  • SPH REIT
  • 1000 Toa Payoh North
  • News Centre
  • Singapore
  • 318994
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SK6USGX (Singapore Exchange)YesTrust UnitsSGSGDJul 2013
50EDB (Deutsche Boerse AG)YesTrust UnitsDEEURJul 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 es...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 11:04
End of Day Share Price2021/03/08 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.