Singapore Press Holdings (SPH)

I think the REIT IPO is a done deal, only thing is dunno how much special dividends can SH get?

SH may get their special dividend this year end if the REIT IPO goes through in 3Q this year.
Hopefully, SPH shareholders get to own this REIT with a dividend in specie but the chances of this is slim.

(Vested)

Hi, why will you consider the chances of this is slim?

(10-04-2013, 11:36 AM)a74henry Wrote: SH may get their special dividend this year end if the REIT IPO goes through in 3Q this year.
Hopefully, SPH shareholders get to own this REIT with a dividend in specie but the chances of this is slim.

(Vested)

Maybe SPH would let shareholders subscribe to the REIT with the dividends received in Jun 2013. Administratively, it is cumbersome.

Perhaps, if there are sufficient shareholders who request for either a dividend in specie of the REIT or the rights to subscribe for the REIT, SPH management may consider.

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Singapore Press Holdings Limited will release its financial results for the Second Quarter/Half-Year ended 28 February 2013 on Friday, 12 April 2013.

(Vested)

Q2 results released. EPS (1H) = $0.10, DPS = $0.07 (PD 23/5/13), NAV = $1.35.

The Straits Times
www.straitstimes.com
Published on Apr 13, 2013
SPH's Q2 profit falls on lower ad revenue
Property continues to shine with a stable business outlook

By Yasmine Yahya

SINGAPORE Press Holdings (SPH) is exploring new growth areas as an uncertain economic outlook continues to dampen advertisement revenue in its main media business.

The firm said yesterday that net profit for the second quarter fell 15 per cent to $71.5 million from the same period a year earlier, as overall revenue declined.

Lower advertisement sales in the three months ended Feb 28 led to a 7.1 per cent drop in newspaper and magazine revenue to $224.4 million year on year.

Circulation revenue during the second quarter also dipped, by 4.9 per cent to $47.3 million.

Investment income slowed, slipping 3.7 per cent from a year earlier to $4.2 million.

Meanwhile, the property division continued to shine.

Rental income rose 4.5 per cent to $50.2 million, on the back of higher rental rates achieved by Paragon. Income from The Clementi Mall remained stable.

SPH warned that the way ahead was paved with challenges, noting that newsprint prices may face upward pressure in the medium term, as its newsprint mill capacity has shrunk.

"The group's advertising revenue performance will be driven by market conditions and consumer sentiment in the key advertising sectors," said chief executive Alan Chan.

"Against the backdrop of evolving media consumption trends, we will continue to explore opportunities in new growth areas and other adjacent businesses, while striving for a sustained performance in the core newspaper business."

The firm said it will also maintain a conservative stance on its investment portfolio allocation, and returns are expected to be commensurate with a lower risk-return profile.

The outlook of its property business is more stable as its retail properties, Paragon and The Clementi Mall, are fully leased and continue to turn in a steady performance.

The development of Seletar Mall is in progress and is expected to be completed at the end of next year.

SPH's earnings per share stood at four cents for the second quarter, down from five cents in the same period last year.

Net asset value per share was $1.35 as of Feb 28, down from $1.39 six months before.

The directors have declared an interim dividend of seven cents a share, which will be paid on May 23.

SPH shares fell five cents to $4.60 yesterday, before the results were released, after holding steady at a 52-week high of $4.65 on Thursday.

They are still 11.5 per cent higher than a month ago, when the firm announced that it was exploring the establishment of a real estate investment trust, to be listed on the SGX mainboard.

yasminey@sph.com.sg

(13-04-2013, 08:29 AM)Musicwhiz Wrote: SPH shares fell five cents to $4.60 yesterday, before the results were released, after holding steady at a 52-week high of $4.65 on Thursday.

They are still 11.5 per cent higher than a month ago, when the firm announced that it was exploring the establishment of a real estate investment trust, to be listed on the SGX mainboard.

This REIT thingy must have been meant to act as a smokescreen for the just released 1H results.....Rather effective, I must say....

In fact, over these past few years, it is their property segment that is covering up the falling profits from the newspaper segment. With the spinoff of the properties into the reit, their falling profits will become more obvious in the future. Personally, I wont touch a company with falling profits at a p/e of more than 10. Currently, sph's valuation is around a p/e of 15-16. Very high imo

(15-04-2013, 09:51 AM)safetyfirst Wrote: In fact, over these past few years, it is their property segment that is covering up the falling profits from the newspaper segment. With the spinoff of the properties into the reit, their falling profits will become more obvious in the future. Personally, I wont touch a company with falling profits at a p/e of more than 10. Currently, sph's valuation is around a p/e of 15-16. Very high imo

PE is closer to 20 but with the current drop, moving towards 19. Very unlikely it'll hit below 10, unless the whole market become a severe bear (was close to 10 in '08 when STi -50%).

Defensive stocks such as reits, telcos, SPH, singpost, SMRT, ST Engg etc are getting overvalued.

Any small upsets can led to sharp sell offs, like what happened to SPH today, going down 5% is really a lot.



Investors that bought for the yield are getting caught.

With brokers offering blue chip margin accounts at 3.5% interest, many clients did the "yield play"

Which is to borrow at 3.5% to buy stuff like SPH and Starhub that generates a average yield of maybe 5%,in which investors profit the 1.5% spread.
Therefore a sharp drop in stock price might lead such investors into the treacherous margin call.


Sell down likely to persist for a while

Be fearful when others are greedy~