Singapore Press Holdings or Singapore Pseudo-retail Holdings

June 19, 2012 at 2:37 pm Leave a comment

CIMB wrote a nice report about SPH and labelled it as “pseudo retail REIT”, that’s what i thought too. However, SPH bought its retail properties at rather high prices. Anyway, with interest in community newspapers growing again after Buffett bought some, SPH stock could see better days ahead apart from being defensive. Obituary section is a cash cow monopoly for them considering an ageing society and people have no choice but to pay up.

Extracted from The Edge Singapore article
“Singapore Press Holdings is becoming increasingly like a retail real estate investment trust (REIT), CIMB Research said, noting its growing retail property arm and stable media business, as well as typical payouts of more than 90%.

While SPH’s newspaper and magazine segment is expected to remain dominant and underpin cash flows, CIMB said growth is likely to come increasingly from the firm’s retail malls.

“With a growing property arm, we do not dismiss the possibility of a spin-off or sale of assets to a REIT over the longer term,” CIMB said, adding that SPH has a strong balance sheet and limited cash-call risks.

CIMB said revenue compound annual growth rate for SPH’s “gem asset”, Paragon shopping mall in Singapore, stood at 8.3% over 2006-2011, outstripping growth for comparable assets under retail Singapore REITs.

It expected similar success for SPH’s Clementi Mall during its first renewal cycle and for Sengkang Mall on completion”

Disclaimer:I am vested in SPH

Entry filed under: Investing. Tags: .

Fengshui gets a makeover- IPO Neratel takeover failure-blessing in disguise

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Recent Posts

June 2012
M T W T F S S
« May   Jul »
 123
45678910
11121314151617
18192021222324
252627282930  

Archives

Blog Stats

  • 37,441 hits

%d bloggers like this: