SPH Reit

[Mustank]

Money making opportunity!!! HUAT AH HUATAHHHH!!!!!!!

 

http://www.asiaone.com/News/Latest%2BNews/...528-425516.html

 

SINGAPORE - Singapore Press Holdings (SPH) will seek to raise about $1.048 billion in a real-estate investment trust (Reit) listing, the company said yesterday.

 

It will inject two of its retail properties - The Clementi Mall and Paragon, worth a total of $3.07 billion - into SPH Reit.

 

The announcement was made after the company received Eligibility to List approval from the Singapore Exchange yesterday.

 

"SPH Reit will be established to principally invest, directly and indirectly, in a portfolio of income-producing real estate, used primarily for retail purposes in Asia-Pacific, as well as real estate-related assets," the company said in a statement.

 

The Reit listing is scheduled for July, subject to an extraordinary general meeting on June 18 to get the approval of SPH's shareholders to establish the trust.

 

Approval will also be sought for a special cash dividend of $0.18 to be distributed to SPH shareholders.

 

Upon the Reit's listing, 99-year leasehold interests in Paragon and The Clementi Mall will be sold to the Reit's trustee, for an aggregate value of $3.07 billion.

 

Paragon, an upscale retail mall in Orchard Road, has been valued by Knight Frank at $2.5 billion and The Clementi Mall, a mid-market suburban mall, at $570.5 million.

 

SPH said it will hold about 70 per cent of the Reit's units, giving it continued majority ownership of the properties.

 

Mr Tony Mallek, SPH's chief financial officer, said that of the $1.04 billion raised, $360 million will be used to pay off loans, and $290 million will be used to pay the special dividend to shareholders.

 

The Reit listing is also expected to strengthen SPH's balance sheet.

 

If the Reit initial public offering had been completed on Aug 31 last year, it is estimated that SPH's net gearing would have decreased from 40.6 per cent to 9.3 per cent before payment of the special dividend. The net asset value would have increased by more than 63 per cent, from $1.39 to $2.27 per share.

 

SPH chief executive Alan Chan said: "The special dividend will reward shareholders for their investment in the SPH Group and, through SPH's stake in SPH Reit, they will continue to benefit from the establishment of SPH Reit."

 

SPH is a media organisation whose portfolio also includes properties, broadcasting, and events and outdoor advertising.

 

Asked what the future holds for SPH's business strategy, Mr Chan said the print business will remain its "mainstay", as the bulk of revenue and profits comes from newspapers and magazines.

 

On whether SPH will look into investing in residential properties, he said: "Our mainstay is on retail properties because they present a constant stream of income...whereas residential properties are one-off affairs."

 

 

[Kangadrool]

Received "free" Keppel REITS until I dunno (until SGX sent me letter say got some shares credited into my account).

 

Looks like REITS too hot liao. Better be careful.

[Porker]

I don't ever see news agencies in other countries dabbling in real estate. Singapore is probably the one and only special kid out there.

 

What has the direction of the business come to really? Are they more interested in generating news for the public or making $$$

 

The outstanding $400mil can be used to fund $800mil worth of developments [rolleyes]

[Mustank]

I don't ever see news agencies in other countries dabbling in real estate. Singapore is probably the one and only special kid out there.

 

What has the direction of the business come to really? Are they more interested in generating news for the public or making $$$

 

The outstanding $400mil can be used to fund $800mil worth of developments [rolleyes]

 

singpost doing not bad

their core function revenue cheong

 

http://www.asiaone.com/A1Business/News/Sto...127-398265.html

 

Singapore Post has reported lower third-quarter profit, citing higher costs for business development and property-related expenses.

 

Net profit fell 5.1 per cent to $39.5 million, or 1.889 cents per share, from $41.6 million, or 2.2 cents per share, a year earlier.

 

The company said yesterday that the weaker performance was largely due to higher corporate costs for the transformation and development of businesses, lower other income and higher property-related expenses.

 

Turnover rose 14.5 per cent to $171 million for the three months ended Dec 31, 2012 on the back of e-commerce activities and contributions from its newly acquired printing and transactional mail business, Novation Solutions.

 

"While we are seeing encouraging results from our transformation efforts, our traditional mail business continues to be under pressure - particularly domestic mail volume, which saw its fifth consecutive quarter decline," said SingPost CEO Wolfgang Baier.

 

Revenue from its mail division grew 20.5 per cent year-on- year to $118.1 million.

 

Excluding the contributions by Novation Solutions, mail revenue growth would have been 15.1 per cent.

 

Logistics revenue rose 10.9 per cent to $63.2 million, while the retail business contributed $21.1 million to revenue, a gain of 19.8 per cent.

 

Total expenses increased 19.8 per cent to $137.1 million, due mainly to higher labour and volume-related costs.

 

Depreciation and amortisation expenses, too, went up with a one-time write-off of intangible assets relating to a release agreement with an associated company. For the nine-month period, net profit edged 0.9 per cent lower to $110.4 million, while revenue was up 10.1 per cent at $476.3 million.

 

The group had a net cash position of $154.1 million, pending the use of the funds for investment opportunities.

 

SingPost has embarked on a series of growth initiatives, such as acquisition opportunities in Singapore and the region. It is also focusing on cost management and investing in new technologies to enhance productivity, given the inflationary environment and rising labour-related expenses.

 

SingPost kept its interim quarterly dividend unchanged at 1.25 cents per share.

 

The counter closed one cent higher at $1.21 yesterday.

 

 

[Mustank]

i think smrt should buy some property also to supplement their income

[Duckduck]

i think smrt should buy some property also to supplement their income

 

thats how HK MTR operates thats y they dont stinge on maintenance...

[Darryn]

Received "free" Keppel REITS until I dunno (until SGX sent me letter say got some shares credited into my account).

 

Looks like REITS too hot liao. Better be careful.

 

Was reported last week that REITS are supposed to be flat for a while...

 

[inlinesix]

I don't ever see news agencies in other countries dabbling in real estate. Singapore is probably the one and only special kid out there.

 

What has the direction of the business come to really? Are they more interested in generating news for the public or making $$$

 

The outstanding $400mil can be used to fund $800mil worth of developments [rolleyes]

To unlock market value of these property lah. Currently, these 2 properties are held at cost if i rem correctly.

[Wyfitms]

I don't ever see news agencies in other countries dabbling in real estate. Singapore is probably the one and only special kid out there.

 

What has the direction of the business come to really? Are they more interested in generating news for the public or making $$$

 

The outstanding $400mil can be used to fund $800mil worth of developments [rolleyes]

 

lure of easy money is too much to resist.

 

very good for the shareholders

 

and of course, snr mgt can now declare special bonus for the huge profit once it is sold. Plus now they can charge the mom & pop unitholders exorbitant AM fees, acquisition fees, leasing fees etc

[Porker]

To unlock market value of these property lah. Currently, these 2 properties are held at cost if i rem correctly.

 

Makes sense to unlock and pare down debt but I think its really a smokescreen to enter the market

[inlinesix]

Makes sense to unlock and pare down debt but I think its really a smokescreen to enter the market

Time to buy SPH share. Dividend may increase.

[Porker]

What's the % of the dividend to the share price?

[Icu]

Makes sense to unlock and pare down debt but I think its really a smokescreen to enter the market

 

Actually, Paragon is free-hold property so SPH is "leasing it" out to the trust listing for a 99-year period tenure after which they would assume full ownership again.

Shrewd move by SPH I would say (though it's kinda' long overdue).

 

 

[Rezorn86]

it will be money making if study their last finance report, like debt-equity ratio, pb ratio n etc. if it is lower to a certain percentage then it is a money making company for us(investor).

[Kurty]

how do we apply for the SPH Reit? never apply for IPO before

[Wyfitms]

Actually, Paragon is free-hold property so SPH is "leasing it" out to the trust listing for a 99-year period tenure after which they would assume full ownership again.

Shrewd move by SPH I would say (though it's kinda' long overdue).

 

long overdue? i think this is actually the best time ever for them..

 

yields are at all time low.

[Wyfitms]

i recall vaguely that the clementi mall deal was overpaid... and anchor tenant was ntuc fairprice!

 

now they are gonna bring in the suckers to pay for their mistakes

[Rezorn86]

how do we apply for the SPH Reit? never apply for IPO before

can buy from Credit Suisse, DBS and Oversea-Chinese Banking Corp trading account.

 

but don't rush for IPO first be patient, cos normally buying it from IPO is not really that worth it.

Edited May 28, 2013 by Rezorn86