SPH REIT Portfolio

SPH REIT 3QFY2022 Updates

SPH REIT has provided their key business and operational updates for 3QFY2022 on 7th July 2022. The good news is that the high vaccination rates and easing of safe distancing measures has stabilized its portfolio performance.

The manager of SPH REIT shared that the overall financial performance of SPH REIT has improved. Year to date, Gross Revenue increase 0.9% y-o-y (year-on-year) to S$211.6 million.

3QFY2022 DPU (Distribution Per Unit) of 1.45 cents represents a 5.1% y-o-y increase from 3Q FY2021. Annualised distribution yield is 5.81%.

Occupancy

Overall portfolio occupancy stood healthily at 97.6% with a Weighted Average Lease Expiry (WALE) at 5.4 years.

As of 31st May 2022, the occupancy for each asset is as follows:

  • Paragon (98.6%)
  • The Clementi Mall (99.2%)
  • The Rail Mall (100.0%)
  • Figtree Grove Shopping Centre (98.5%)
  • Westfield Marion Shopping Centre (97.0%)

If you compare to 1QFY2022, occupancy was actually lower.

Lease Expiry

In terms of overall portfolio Lease Expiry by Net Lettable Area (NLA), I think there is still much to be done because 7.1% of leases are expiring in FY22.

11% of leases under Westfield Marion will expire in FY22.

SPH REIT 3QFY22 Lease Expiry

Debt

Gearing stood at 30.1% with a weighted average term to maturity at 2.6 years.

There is still S$225 million of undrawn revolving credit facility lines.

SPH REIT 3QFY22 Debt

Current Dividend Yield

Based on FY21 full year distribution of 5.4 cents and current share price of S$0.93, this translate to a current dividend yield of 5.80%.

As a dividend investor, I am glad that DPU is recovering as compared to FY21.

SPH REIT FY21 Distribution

Summary of SPH REIT 3QFY2022 Updates

Like what the manager of SPH REIT has shared, high vaccination rates and easing of safe distancing measures has contributed to its recovery.

Other than the recent Chain Offer saga that displeased its investors, the 3QFY2022 update certainly hint that there should be some upside in SPH REIT in recent months should it maintain its current performance.

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