SingPost: Property spin-off a bonus; buy for defensiveness The buoyant mood in Singapore’s property sector means that this could bean opportunetime for SingPostto spin offsome of its assets; it may even receive an offer thatis hard to resist. The group has about61 postoffices and weestimate that about 16 or so arepotentially saleable. However, the jewel in itsbook is the Singapore Post Centre (SPC). We estimate that the SPC is worth S$765m based on its currentmixofindustrial, office and retail use,butthe valuemayincrease to aboutS$1.56b if the building is converted to full commercial use. However,putting marketsentimentaside,the group maynotbe in a rush to unlock valueas it is currentlycash-rich. Hence we regard a spin-offas a bonus; and investors should focus on more fundamental factorssuch as thecompany’sdefensive nature and consistentdividends. Maintain BUYwith S$1.14 fair value estimate.