SPH Reit Paragon

SPH REIT FY2022 Results

Paragon

On 8th October 2022, SPH REIT announced its FY2022 results for the 12
months ended 31 August 2022. The overall positive financial results were a little surprising to me.

I believe the improvement was because its assets (Paragon) in Singapore benefited from the easing of COVID-19 restriction measures and thus saw improvements both in footfall and tenant sales. International tourists arrival also play a part for its improving financial results.

SPH Reit FY22 Financial Results

As you can see from the table below, gross revenue increased 1.7% year on year to S$281.9 million and net property income (“NPI”) increased 3.5% year on year to S$209.7 million.

SPH REIT had also declared a distribution per unit (“DPU”) of 1.39 cents for 4Q FY 2022 which will be paid to unitholders on 25th November 2022.

Full year distribution ended 31 August 2022 Distribution Per Unit (“DPU”) was 5.52 cents, an increase of 2.2% year on year.

FY22
(S$’000)
FY21
(S$’000)
Change
Gross Revenue 281,856 277,179 1.7%
Net Property Income 209,701 202,627 3.5%
Income available for distribution 160,671 157,803 1.8%
Distribution to Unitholders 154,811 150,160 3.1%
Distribution Per Unit (“DPU”) (cents) 5.52 5.40 2.2%

Occupancy

Overall portfolio occupancy remained strong at 97.5%.

I believe occupancy will continue to improve as SPH REIT has reported tenant sales for Paragon and The Clementi Mall registering improvements by 25.6% year on year and 8.8% year on year, respectively.

Debt

Gearing stood low at 30.0%. If you have been following SPH REIT, you will know that SPH REIT has always keep its gearing at very low levels.

71% of the borrowings are based on fixed rate and remaining 29% at floating rate.

Current Dividend Yield

Based on the current share price of S$0.89 and FY22 full year distribution of 5.52 cents, this translate to a current dividend yield of 6.20%.

Summary of SPH REIT FY2022 Results

In summary,

  • Gross revenue increased 1.7% year on year to S$281.9 million.
  • Net property income (“NPI”) increased 3.5% year on year to S$209.7 million.
  • Full year DPU increase 2.2% year on year.
  • Overall portfolio occupancy remained strong at 97.5%.
  • Gearing stood low at 30.0%.
  • Attractive current dividend yield of 6.20%.

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