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ChilliCrab_

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SPH has awaken. New acquire and possibly REITS to come. Extra income coming in!

But ah, if SPH list reit, what should they name it? SPH Commercial Trust (SPHCT)?
 

Dividends Warrior

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SPH has awaken. New acquire and possibly REITS to come. Extra income coming in!

But ah, if SPH list reit, what should they name it? SPH Commercial Trust (SPHCT)?

DW REIT :D

Bcos it will be the very first IPO DW will press press press!!!!!!! :s12::s12:
 

iCuteCube

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$60m may not be a fair pricing, however we need to look at it from monopoly perspective which most ppl can't see or sees no value in monopoly. I believed all of us had once played monopoly, imagine a strong player got more cards and start to build houses, the revenue increase if anyone stopped at their plot of property.

They set up stproperty to fight against propertyguru.
Then they set up stcars to fight against sgcarmart. Knowing that SGCM is still one of the top Singapore car website. Having owning HWZ forum, and now SGCM, i guess there is still possible growth in their advertise sector in the virtual world.

Now, maybe many could not sees a value, but on a personal basics i kinda support this decision. Like sometime ago Clementi Mall which is bought at high price had sparks many debates, but look at Clementi Mall growth now? Well, let's monitor in the next few years on their results, but SPH is definitely in my radar list on their future REITs movement as well.
 

dork32

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anyone noe why sph go up so much today? cannot be purchase of sgcarmart, right?
 

whizzard

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Here's a summary of a research report on the topic.

This is just the first step of what is likely to turn out to be a multi-year value unlocking process. SPH’s confirmation of a retail REIT spin-off in the future adds another, more exciting dimension to the stock.

The proposed REIT can fetch a potential distribution yield of 5.6%, relatively attractive when compared to the average S-REIT yield of 5.3% at this end of the yield compression cycle and even lower returns from fixed income. The market now expects a special dividend from the spinoff, which is estimated at SGD1b (SGD0.63 a share) assuming tax savings from a REIT structure and debt repayment.

Dividend yield still looks attractive at 5.7% even after recent share price surge. However, it does not have a long enough tail of injectable assets and concerns over SPH’s waning media business.

Not many details are available yet on SPH’s proposed retail REIT, but Paragon and Clementi Mall are the two most likely assets in the initial portfolio. Seletar Mall is unlikely to be considered as it is still under development, but could be saved for future injection. SPH shareholders could receive special dividends or REIT units post the spinoff.

• Paragon: A freehold property with an estimated net lettable area (NLA) of 700,600 sq ft, of which 70% is for retail and the remaining 30% for office and medical suites. The fair market valuation of this asset as of Aug 2012 is SGD2.43b.

• Clementi Mall: A leasehold suburban retail mall with an estimated NLA of 194,000 sq ft. SPH holds a 60% stake in the mall. The fair market valuation of this asset as of Aug 2012 is SGD598m.

Since REITs are exempt from corporate tax, SPH shareholders stand to enjoy tax-saving benefits from the REIT spinoff. In FY8/12, Paragon and Clementi Mall together contributed SGD190m in operating income. The two properties were valued at SGD3,028m, implying a gross cap rate of 6.3%. Assuming full tax savings of 17% (corporate tax rate) being released following the duo’s injection into a REIT, it will mean SGD32m in additional income (assuming full tax pass-through to future unitholders). The total capital value of Paragon and Clementi Mall will then inch up to SGD3,540m – at the same implied cap rate. On a per share basis, the potential tax savings can unlock roughly SGD0.30 a share for shareholders.
 

clearsky2007

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SPH slowly creeping up. Now 4.62 at all time high. Really tempted to sell :s12:, but got interim dividends in May 13. :s22:
What do you is the target price? :)
 

whizzard

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SPH slowly creeping up. Now 4.62 at all time high. Really tempted to sell :s12:, but got interim dividends in May 13. :s22:
What do you is the target price? :)

Err, $4.62 is not the all-time high. If you have the 10-year chart, believe the 10-year high was achieved in Oct 2005. I only have the closing prices on my chart, not the intra-day prices and the closing high on 7 Oct 2005 was $4.72 (the intra-day should be higher).

Anyway, ride the potential unlocking of value via their REIT (if they decide to pursue it).
 

iCuteCube

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SPH is underperformed according to those research paper.

STI components consist of many blue chip stocks, and SPH, Starhub are one of those few underperformed stocks, while STI is hovering around 3300 level.

My opinion is to keep it first, as i don't see anything stock is good enough to sell my SPH to rebalance. Unless you foresee a better performing stock, you want to change your position, otherwise, stay.
 
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