SPH REIT 3QFY19 DPU is 1.39 Cents

I have recently added SPH REIT into my stock portfolio. SPH REIT has announced their 3QFY19 financial results on 11th July 2019 which kind of surprised me as their 3QFY19 financial results were pretty good and better as compared to the same quarter in FY18. Distribution Per Unit (DPU) increased  by 1.5%. Gross Revenue increased by 12.7% and Net Property Income increased by 14.2%.

Below are the 3QFY19 financial results.

3QFY19 Financial Results

3QFY19
(S$’000)
3QFY18
(S$’000)
Change
Gross Revenue 58,333 51,769 12.7%
Net Property Income 46,328 40,559 14.2%
Distributable Income 35,953 35,205 2.1%
Distribution Per Unit (“DPU”) (cents) 1.39 1.37 1.5%

YTD 3QFY19 Financial Results

YTD3QFY19
(S$’000)
YTD3QFY18
(S$’000)
Change
Gross Revenue 170,261 158,840 7.2%
Net Property Income 133,969 125,017 7.2%
Distributable Income 106,995 105,532 1.4%
Distribution Per Unit (“DPU”) (cents) 4.14 4.11 0.7%

Occupancy

Occupancy stood at a high of 99%.

We all know that rental reversions show whether new leases signed in the quarter have higher rental rates or lower rental rates. Investors should look out for positive rental reversion.

The Clementi Mall and The Rail Mall recorded positive rental reversion of 5.8% and 9.1% respectively for YTD FY19. This means that the new leases signed in the quarter for The Clementi Mall and The Rail Mall were 5.8% and 9.1% higher respectively in terms of rental rates as compared to previous tenants on average.

The overall portfolio registered a positive rental reversion of 8.4%.

Gearing Ratio

Currently, gearing stood at 30.1% and thus there is still a lot of room for further debt to fund future acquisitions.

The Weight Average Debt Maturity is 1.8 years. I consider this as short and this is something investors should monitor and keep a watch out for in an unfavourable economy. However, if you look at the below Debt Maturity Profile, S$280 million of debt in 2020 have fixed interest rate which means the interest expense is pretty much stable which means no surprises till then.

Summary

The current dividend yield for SPH REIT is 5.04% based on 5.54 cents paid out in FY18 and the current share price of S$1.10.

In the presentation slides, it mentioned about Right of First Refusal (ROFR) about The Seletar Mall which has maintained high occupancy since its opening in November 2014. This has been a hot speculation topic for decades among investors of SPH REIT. We shall see whether if there are acquisition plans by SPH REIT in FY19 which will further add value to this gem.

Screening For Dividend Stocks In July 2019

How do you find stocks to buy on the stock market? One of the way is to use a stock screener. There are several websites that offer such a tool to screen for stocks using conditions that you can set such as dividend yield, P/E ratio, P/B ratio and Market Capitalization etc. Some website that offers such a tool are Singapore Exchange, FSMOne and StocksCafe.

For myself, I prefer to run my dividend stocks screening using StocksCafe as it allows me to save the conditions that I can pre-set. You can check out my review here on the StocksCafe Dividend Stocks Screener (Read more: Screening For Dividend Stocks Using Stocks Cafe Stock Screener).

Here are the results generated on 2nd July 2019 ordered from the highest current dividend yield to the lowest. Read More

Screening For Dividend Stocks In May 2019

I have recently added SPH Reit to my wife’s stock portfolio which has been on my watch list for quite some time. It is time to hunt for dividend yielding stocks to add to my watch list so that I can add them to either my or my wife’s stock portfolio when the opportunity arises.

One of the ways to hunt for dividend yielding stocks is to ran a stocks screener. I am currently using Stocks Cafe Stocks Screener as it allows me to save the conditions I have set to screen for dividend yielding stocks.

Here are the results ordered from the highest current dividend yield to the lowest.

Name Current Yield % P/E P/B Market Cap
Manulife Reit USD 8.736 15.7 1.047 1.1B
Haw Par 8.406 17.99 1.101 3.2B
Cromwell Reit EUR 8.367 10.36 0.956 1.1B
OUE Commercial Reit 6.891 10.02 0.701 1.4B
OUE Hospitality Trust 6.772 17.91 0.955 1.3B
Capita Retail China Trust 6.768 10.99 0.949 1.5B
Frasers Commercial Trust 6.531 9 0.938 1.3B
Far East Hospitality Trust 6.061 14.16 0.755 1.2B
Mapletree Industrial Trust 5.818 12.65 1.399 3.9B
CDL Hospitality Trust 5.752 17.58 1.05 1.9B
Oxley 5.688 5.82 0.937 1.3B
Ascendas-iTrust 5.682 6.56 1.471 1.3B
SingTel 5.521 16.68 1.785 51.6B
Suntec Reit 5.429 17.13 0.874 4.9B
DBS 5.409 12.34 1.472 70.6B
Hong Leong Finance 5.376 10.48 0.655 1.2B
SPH REIT 5.337 19.44 1.108 2.7B
Ascendas Reit 5.292 18.56 1.44 9.4B
Frasers Logistics and Industrial Trust AUD 5.116 12.58 1.327 2.5B
Mapletree NAC Trust 5.093 6.87 0.955 4.4B
Frasers Logistics and Industrial Trust 5.092 12.27 1.294 2.4B
SPH 5.081 14.97 1.151 4B
Frasers Centrepoint Trust 5.051 13.21 1.142 2.2B
Fortune Reit HKD 5.037 3.27 0.614 19.7B

Manulife Reit that appears in the top of the list looks interesting. Honestly, I have not done any research or read up on Manulife Reit yet but I do know a few financial bloggers holding the Reit. At 8.736% current dividend yield, this deem attractive to me but of course we all know that the higher the dividend yield, the higher the risk.

I do not know every stocks that appear in the above list but it serves as a good base to start researching deeper into them.

Please take note that the above is not a recommendation to buy or sell.

Happy hunting for dividend stocks!