Singapore Press Holdings (SPH)

[opmi]

BTW anyone know what is profit for Paragon and Clementi Mall respectively ?? Paragon seems to be around $75m...

[Drizzt]

total around 95 mil so i guess its 65 and 30.

[Penguin Papa]

I don't think their profits will be impacted significantly. They are still holding on to a 70% stake in the REIT. The tax savings and recurring management fee and distributions should be sufficient to offset the earning loss. The wonderful thing is that they managed to walk away with a large cash hoard while maintaining their profits.

(Not Vested)

I agree with Nick. Let's work out the maths...

Before the listing, rental income is $191 million, PBT of $100 million.

After the listing, assuming rental income remains the same i.e. $191 million. The estimated expenses are
- Property expense of -$48 million
- Property manager fee of -$6 million
- Finance cost of -17 million (amortizing base 900 million debt with similar SPH's average interest rate)
- REIT manager fee of -$21 million

So, the distributor income is estimated as $100 million. SPH's 70% share is $70 million. Additional fees income (from both property and REIT fee) is $27 million, so total $97 million.

$97 million (post listing) versus $100 million (pre-listing PBT)

REITS mangement fee and property management fees is 14% of revenue? Or 27% of profit? Such good business?

[opmi]

total around 95 mil so i guess its 65 and 30.

If CM is $30m, why income supprt at only $20m nia??

[Nick]

I don't think their profits will be impacted significantly. They are still holding on to a 70% stake in the REIT. The tax savings and recurring management fee and distributions should be sufficient to offset the earning loss. The wonderful thing is that they managed to walk away with a large cash hoard while maintaining their profits.

(Not Vested)

I agree with Nick. Let's work out the maths...

Before the listing, rental income is $191 million, PBT of $100 million.

After the listing, assuming rental income remains the same i.e. $191 million. The estimated expenses are
- Property expense of -$48 million
- Property manager fee of -$6 million
- Finance cost of -17 million (amortizing base 900 million debt with similar SPH's average interest rate)
- REIT manager fee of -$21 million

So, the distributor income is estimated as $100 million. SPH's 70% share is $70 million. Additional fees income (from both property and REIT fee) is $27 million, so total $97 million.

$97 million (post listing) versus $100 million (pre-listing PBT)

REITS mangement fee and property management fees is 14% of revenue? Or 27% of profit? Such good business?

The circular contains the necessary information - http://info.sgx.com/webcoranncatth.nsf/V...80047C218/$file/Circular.pdf?openelement

On pg 20, it states that assuming the transaction was completed in FY 2012, the distributable income from SPH REIT would be $115.9 million. On pg 21, it states the fair valuation of the 2 properties are $3.072 billion. There has been no revelation on the fee income structure but lets assume a fixed base fee at 0.4% of AUM and no performance fee based on NPI.

70% stake in REIT = $81.1 million
Fee Income after 17% tax = $12.3 million x 0.83 = $10.2 million
Total Net Income: $91.3 million

Hardly any difference with the pre-listing profits BUT SPH gains $700 million cash which could be used to generate additional returns ie 5% bonds could gain $35 million net income !

(Not Vested)

[Drizzt]

total around 95 mil so i guess its 65 and 30.

If CM is $30m, why income supprt at only $20m nia??

that i am not sure. who gave an income support of 20 mil?

[Penguin Papa]

I don't think their profits will be impacted significantly. They are still holding on to a 70% stake in the REIT. The tax savings and recurring management fee and distributions should be sufficient to offset the earning loss. The wonderful thing is that they managed to walk away with a large cash hoard while maintaining their profits.

(Not Vested)

I agree with Nick. Let's work out the maths...

Before the listing, rental income is $191 million, PBT of $100 million.

After the listing, assuming rental income remains the same i.e. $191 million. The estimated expenses are
- Property expense of -$48 million
- Property manager fee of -$6 million
- Finance cost of -17 million (amortizing base 900 million debt with similar SPH's average interest rate)
- REIT manager fee of -$21 million

So, the distributor income is estimated as $100 million. SPH's 70% share is $70 million. Additional fees income (from both property and REIT fee) is $27 million, so total $97 million.

$97 million (post listing) versus $100 million (pre-listing PBT)

REITS mangement fee and property management fees is 14% of revenue? Or 27% of profit? Such good business?

The circular contains the necessary information - http://info.sgx.com/webcoranncatth.nsf/V...80047C218/$file/Circular.pdf?openelement

On pg 20, it states that assuming the transaction was completed in FY 2012, the distributable income from SPH REIT would be $115.9 million. On pg 21, it states the fair valuation of the 2 properties are $3.072 billion. There has been no revelation on the fee income structure but lets assume a fixed base fee at 0.4% of AUM and no performance fee based on NPI.

70% stake in REIT = $81.1 million
Fee Income after 17% tax = $12.3 million x 0.83 = $10.2 million
Total Net Income: $91.3 million

Hardly any difference with the pre-listing profits BUT SPH gains $700 million cash which could be used to generate additional returns ie 5% bonds could gain $35 million net income !

(Not Vested)

So SPH is the winner, and the rest of REITholders are the Sxxxxxs?

[CityFarmer]

I don't think their profits will be impacted significantly. They are still holding on to a 70% stake in the REIT. The tax savings and recurring management fee and distributions should be sufficient to offset the earning loss. The wonderful thing is that they managed to walk away with a large cash hoard while maintaining their profits.

(Not Vested)

I agree with Nick. Let's work out the maths...

Before the listing, rental income is $191 million, PBT of $100 million.

After the listing, assuming rental income remains the same i.e. $191 million. The estimated expenses are
- Property expense of -$48 million
- Property manager fee of -$6 million
- Finance cost of -17 million (amortizing base 900 million debt with similar SPH's average interest rate)
- REIT manager fee of -$21 million

So, the distributor income is estimated as $100 million. SPH's 70% share is $70 million. Additional fees income (from both property and REIT fee) is $27 million, so total $97 million.

$97 million (post listing) versus $100 million (pre-listing PBT)

REITS mangement fee and property management fees is 14% of revenue? Or 27% of profit? Such good business?

The circular contains the necessary information - http://info.sgx.com/webcoranncatth.nsf/V...80047C218/$file/Circular.pdf?openelement

On pg 20, it states that assuming the transaction was completed in FY 2012, the distributable income from SPH REIT would be $115.9 million. On pg 21, it states the fair valuation of the 2 properties are $3.072 billion. There has been no revelation on the fee income structure but lets assume a fixed base fee at 0.4% of AUM and no performance fee based on NPI.

70% stake in REIT = $81.1 million
Fee Income after 17% tax = $12.3 million x 0.83 = $10.2 million
Total Net Income: $91.3 million

Hardly any difference with the pre-listing profits BUT SPH gains $700 million cash which could be used to generate additional returns ie 5% bonds could gain $35 million net income !

(Not Vested)

The estimation of REIT manager's and Trustee's fee was 0.55% of AUM (0.5% + 0.05% respectively), plus 3% performance fee on net property income i.e. $21 million

Property manager's fee was estimated base on 3% of estimated rental income i.e. $6 million.

[opmi]

total around 95 mil so i guess its 65 and 30.

If CM is $30m, why income supprt at only $20m nia??

that i am not sure. who gave an income support of 20 mil?

Sorry. the correct info:

SPH give 5 years guarantee of min $31m income for CM. But only
up to $20m total shortfalls.
(pg 12 of SPH EGM Circular)

[Dividend Warrior]

I don't think their profits will be impacted significantly. They are still holding on to a 70% stake in the REIT. The tax savings and recurring management fee and distributions should be sufficient to offset the earning loss. The wonderful thing is that they managed to walk away with a large cash hoard while maintaining their profits.

(Not Vested)

I agree with Nick. Let's work out the maths...

Before the listing, rental income is $191 million, PBT of $100 million.

After the listing, assuming rental income remains the same i.e. $191 million. The estimated expenses are
- Property expense of -$48 million
- Property manager fee of -$6 million
- Finance cost of -17 million (amortizing base 900 million debt with similar SPH's average interest rate)
- REIT manager fee of -$21 million

So, the distributor income is estimated as $100 million. SPH's 70% share is $70 million. Additional fees income (from both property and REIT fee) is $27 million, so total $97 million.

$97 million (post listing) versus $100 million (pre-listing PBT)

REITS mangement fee and property management fees is 14% of revenue? Or 27% of profit? Such good business?

The circular contains the necessary information - http://info.sgx.com/webcoranncatth.nsf/V...80047C218/$file/Circular.pdf?openelement

On pg 20, it states that assuming the transaction was completed in FY 2012, the distributable income from SPH REIT would be $115.9 million. On pg 21, it states the fair valuation of the 2 properties are $3.072 billion. There has been no revelation on the fee income structure but lets assume a fixed base fee at 0.4% of AUM and no performance fee based on NPI.

70% stake in REIT = $81.1 million
Fee Income after 17% tax = $12.3 million x 0.83 = $10.2 million
Total Net Income: $91.3 million

Hardly any difference with the pre-listing profits BUT SPH gains $700 million cash which could be used to generate additional returns ie 5% bonds could gain $35 million net income !

(Not Vested)

So SPH is the winner, and the rest of REITholders are the Sxxxxxs?

That's why DR Lee Boon Yang told the SPH shareholders at the EGM

"You can have your cake and eat it too".