Anyone who want to invest in SMRT need to consider the above. I looked into SMRT a few times but despite the relatively good dividend record, I walked away becos SMRT operates in a highly regulated environment. LTA can and will impose additional operating requirements to appease the demanding public. My feel is that the day of 'high dividends' under Saw Phaik Huat is over. (Not veste in CDG, SBST or SMRT)
Love this paragraph.
I looked into SMRT numbers to understand why they keep claiming that they are making losses despite increasing transport fees and ever increasing population taking their trains and buses every year.
You look at their footfalls number at their stations, they are all the important ones with high retail space.
The crux is, they haven't increase much on maintenance costs and yet their margins haven't increased. With the focus on maintenance now, their margins will fall. I don't see how they will be able to maintain their dividend distribution going forward.
Frankly, at current price levels their yield isn't attractive to me.
Not vested. I prefer SBS who might have better mileage since they won the tender for DTL.
Edit: I don't support any Temasek investments mostly. The moment I see their name as a cornerstone, I close the page.
