Singapore Press Holdings (SPH)

(25-06-2013, 12:11 AM)Dividend Warrior Wrote: Delay another year.

Then, maybe can even include Seletar Mall in the IPO.

Official statement was “monitoring the market conditions and will make an announcement at the appropriate time.”. I am yet to catch any news and statement saying delay for a year?

(27-06-2013, 09:59 PM)CityFarmer Wrote: Official statement was “monitoring the market conditions and will make an announcement at the appropriate time.”. I am yet to catch any news and statement saying delay for a year?

That's just his conjecture.

Suggestion to DW: Again try to be more substantive in your post. You can post something along the line of 'I dun think delaying the REITs IPO is a bad idea. If they delayed it by a year, they can enlarged the portfolio and inject Selatar Mall. This may enhance the investment merits of the REIT and deflect criticism that the REIT has only 2 properties.'

See the difference?

Power of Semantics!!!

The cake is here...

SPH REIT Preliminary Prospectus (9 July 2013).pdf (6311 Kb) Lodged

(09-07-2013, 06:10 PM)swakoo Wrote: The cake is here...

SPH REIT Preliminary Prospectus (9 July 2013).pdf (6311 Kb) Lodged

Thanks for the update.

SPH announced that SPH REIT Management has today lodged the preliminary prospectus of SPH REIT with the Monetary Authority of Singapore in connection with its IPO.

(09-07-2013, 06:10 PM)swakoo Wrote: The cake is here...

SPH REIT Preliminary Prospectus (9 July 2013).pdf (6311 Kb) Lodged

Thanks for sharing. Date of IPO will still be dependent upon the market condition.

5.5 to 6% yield, would it be considered attractive?

Source: moneymind

Singapore Press Holdings Files REIT IPO Prospectus to Singapore Central Bank: Dow Jones

Singapore Press Holdings Ltd. (T39.SG) Tuesday filed its prospectus to the central bank for an up to 554 million Singapore dollar (US$433 million) initial public offering after a three-week delay, in a sign that recent volatile equities markets are on the mend.

The company, Singapore's largest publishing firm, is seeking to list its two shopping malls through a real estate investment trust and has kept a price range of S$0.85-S$0.90 per unit.

The prospectus showed that Singapore Press Holdings has got five cornerstone investors who have agreed to subscribe to 251 million units. The company is offering another 308.88 million units to institutional and retail investors. Cornerstone investors generally agree to subscribe and hold on to shares, expressing confidence in the company.

Singapore Press Holdings is reviving an IPO that it had originally attempted last month but delayed as stock markets around the global fell. The MSCI Asian stock market index is now up 1.7% year to date but much lower than the 4.4% gain it saw during the January to May period before the June sell-off. For instance, the Singapore Straits Times Index is now up 0.8% after it fell 4.3% last month.

June was a very bad month for equities markets the world over after the U.S. Federal Reserve said it may start winding down its bond buying later this year. Worries over China's slowing economic growth have also darkened investors' mood.

The IPO, if successful, will be the first since April, when Asian Pay Television Trust listed its Taiwan broadband communications business through a US$1 billion offering

It will be interesting to see how much over subscribed the IPO will be. It will be a sign of how much is the retail investor still hungry over yields (so check the public oversubscription number as a barometer for market sentiments for those investing in yield-related equities)

5.5-6.0% for SPH REIT is actually not that bad; if you compare it against capita Mall (4.9%) and Fraser retail reit (5.4%). Of course SPH is going to benefit more since it is selling 99 years of a freehold at a high valuation and many other factors that forumers have mentioned. Its prospective yield is close to the yields of other retail reits in the market. Est DPU is 4.95 cents. So using the 4.9 - 5.4% yield range (as of 9 July), I get a price range of $0.90-$1.01.

In my opinion, you would be better off buying SPH itself rather than the REIT if we ignore the valuation factor of SPH and just focus on yield.

Dividend for the past 8 years :

2012 - S$0.24
2011 - S$0.24
2010 - S$0.31
2009 - S$0.26
2008 - S$0.27
2007 - S$0.32
2006 - S$0.27
2005 - S$0.31

Assuming minimum dividend of S$0.24 based on closing price of S$4.26, SPH yield would be 5.63%.

Furthermore after listing the REIT, SPH is giving out S$0.18 dividend per share and this is 4.22% one-off yield.