SPH REIT Full Year DPU for FY19 Up 1.1%

I was extremely busy with work this month and thus didn’t have time and energy to catch up on the financial results of the stocks and REITs that I have held in my stock portfolio. Earlier this year, I have added SPH REIT to my stock portfolio. SPH REIT currently makes up 11% of my entire stock portfolio.

On 10th October 2019, SPH REIT announced their 4QFY19 financial results. The results are inline with my expectations. The most important of all, Distribution Per Unit (“DPU”) increased by 2.1% to 1.46 cents.

The full year Distribution Per Unit (“DPU”) continued its growth by 1.1% to reach 5.60 cents for FY19.

4QFY19 Financial Results

4QFY19
(S$’000)
4QFY18
(S$’000)
Change
Gross Revenue 58,374 52,962 10.2%
Net Property Income 45,809 40,979 11.8%
Distributable Income 35,368 34,576 2.3%
Distribution Per Unit (“DPU”) (cents) 1.46 1.43 2.1%

Full Year FY19 Financial Results

FY19
(S$’000)
FY18
(S$’000)
Change
Gross Revenue 228,635 211,802 7.9%
Net Property Income 179,779 165,996 8.3%
Distributable Income 144,790 142,310 1.7%
Distribution Per Unit (“DPU”) (cents) 5.60 5.54 1.1%

Gearing Ratio

The debt gearing currently stood at 27.5%. I personally felt the gearing ratio is low for a retail REIT and there is definitely further room for more acquisitions.

Occupancy Rate

Overall portfolio occupancy stood at 99.1%. This is at healthy levels and I shall not drill into the details here.

Visitor traffic and tenant sales annual trend

The assets in SPH REIT enjoys an increasing visitor traffic year on year. As we can see below, tenant sales is also increasing year on year. When sales are stable, it is likely tenants will continue to renew their rental. This provides some form of stability in SPH REIT.

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