SPH REIT (SGX:SK6U)'s Full Year DPU Dropped 54% Due To Rental Waiver

SPH REIT (SGX:SK6U)'s full year DPU was down 54% to 2.72¢. It is currently trading at 3.2% yield based on the last traded share price of $0.86 on 7 Oct.

Key Highlights:

  • Distribution per unit (DPU) and Dividend Yield (3.2%)

  • Price to book ratio (0.95)

  • Gearing (30.5%)

  • Interest coverage ratio (4.7x)

  • Portfolio occupancy rate (97.8%)

  • Growth catalyst

Background of SPH REIT

SPH REIT is a REIT that manages retail properties in the Asia-Pacific region. Currently, its portfolio consists of five assets in Singapore (Paragon, The Clementi Mall and The Rail Mall) and Australia (Figtree Grove Shopping Centre and Westfield Marion Shopping Centre). 

SPH REIT’s sponsor is Singapore Press Holdings Limited (SGX: T39) which has a 69.8% interest in SPH REIT.

1. Distribution per unit and dividend yield

In its 2H 2020 result, SPH REIT's net property income dropped 14.9% to S$78.4m. This was partly due to the $31.8m rental waivers and relief to its Singapore tenants during this Covid-19 period. Based on its latest price, the REIT is currently trading at about 3.2% dividend yield. Before the recent sharp drop in DPU due to Covid-19, the REIT has been maintaining very consistent DPU over the years.

2. Price to book ratio