SPH REIT unit price sinks 2.68% after it posted a DPU of 1.39 cents for Q3

The group which owns retail malls in Singapore including the Paragon Mall at Orchard Road and The Clementi Mall, said the distribution per unit for the third quarter was 1.5% higher that a year ago.

Mall landlord SPH REIT saw its unit price fall by 2.68% on Friday after it posted a distribution per unit (DPU) of 1.39 Singapore cents for the third quarter and an increase in net property income from a year ago at S$46.3 million.

The group which owns retail malls in Singapore including the Paragon Mall at Orchard Road and The Clementi Mall, said the DPU for the third quarter was 1.5% higher that a year ago.

The payment date for the DPU for the quarter is on August 22, 2019, SPH REIT said.

SPH REIT unit price down by 2.68%

The REIT hit a year-to-date high of S$1.12 on Thursday before falling 2.68% or 3 Singapore cents to S$1.09 at around 2.45pm Singapore time on Friday, as some investors took their bets off the table on the last trading day of the week.

Year-to-date, units of SPH REIT have gained by 9%, from S$1.00 on January 1, 2019.

Net property income up 14.2%, occupancy rate “high” at 99.0%

Net property income, meanwhile, increased by S$5.8 million or 14.2% from the previous quarter, mainly due to contributions from The Rail Mall in Singapore and Figtree Grove Shopping Centre in Australia, the group said.

SPH REIT’s properties maintained a “high occupancy” at 99.0% as of the third quarter, however, in the second quarter, the group had reached an occupancy of 99.2%.

The group’s overall portfolio received a positive rental reversion of 8.4%, which is consistent with the first half of this year.

In the nine months of the financial year ended May 31, 2019, the group said its DPU rose to 4.14 Singapore cents, up from 4.11 Singapore cents in the same nine months a year ago.

The annualized distribution yield is down by 4.1% from the previous year, at a rate of 5.32% for the nine month period ended May 31, 2019, compared to 5.55% in the corresponding period a year ago.

‘For this quarter we also benefited from the contributions from The Rail Mall and Figtree Grove Shopping Centre, which we acquired in 2018…Our focus remains to drive long-term value of our properties and deliver sustainable returns for our unitholders,’ said Ms Susan Leng, the chief executive of SPH REIT Management.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.