SPH REIT
SK6U.SI
SPH REIT: 3QFY16 results within our expectations
- SPH REIT reported a steady set of 3QFY16 results which met our expectations.
- Gross revenue grew 1.9% YoY to S$52.2m. This was driven by Paragon (+2.4% YoY to S$42.5m), as gross revenue for The Clementi Mall (TCM) fell marginally by 0.2% YoY to S$9.7m.
- DPU of 1.36 S cents represented YoY growth of 0.7%.
- For 9MFY16, SPH REIT’s gross revenue rose 2.0% to S$157.4m, while its DPU inched up 0.2% to 4.09 S cents. These formed 74.5% and 74.3% of our FY16 forecasts, respectively.
- Both Paragon and TCM achieved full occupancy, as at 30 Jun 2016.
- Rental reversions came in at 4.9% for Paragon and 4.5% for TCM for 9MFY16, and this culminated in overall portfolio rental reversions of 4.9%.
- On the flipside, visitor traffic to SPH REIT’s malls declined 2.2% on a YoY basis for 9MFY16 given the soft retail environment.
- Given this in-line set of results, we maintain our forecasts, HOLD rating and S$0.99 fair value estimate on SPH REIT.
Wong Teck Ching Andy CFA
OCBC Securities
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http://www.ocbcresearch.com/
2016-07-08
OCBC Securities
SGX Stock
Analyst Report
0.99
Same
0.99
