SPH: Better investment than retail S-REITs?

SPH is still my largest investment in a Singapore blue chip and it is an important part of my high yield portfolio. CIMB now suggests that investing in SPH is better than investing in retail S-REITs. It would be a happy coincidence for me if CIMB should be right as my only exposure to retail S-REITs is a small long position in Suntec REIT, much smaller than my investment in SPH.

Singapore Press Holdings is becoming increasingly like a retail real estate investment trust (REIT), CIMB Research said, noting its growing retail property arm and stable media business, as well as typical payouts of more than 90%...


The broker also said SPH is a cheaper alternative for investors seeking exposure to retail Singapore REITS after the stock’s underperformance, offering yields of 6.4% versus an average of 6.1% for retail Singapore REITs...


CIMB said revenue compound annual growth rate for SPH’s “gem asset”, Paragon shopping mall in Singapore, stood at 8.3% over 2006-2011, outstripping growth for comparable assets under retail Singapore REITs.


Related post:
SPH: Interim dividend of 7c per share.

CIMB says SPH a “pseudo retail REIT”. It upgraded its rating on SPH to outperform from neutral and raised its price target to $4.19 from $4.13.
Tuesday, 19 June 2012

© 2012 - The Edge Singapore

Singapore property prices to stay resilient?

If the latest report by Maybank is correct, then, the expected 20 to 30% decline in Singapore property prices over the next couple of years might not transpire. The expectation is now for a mere 10% decline in property prices over the next 18 months. This suggests that any dip in prices could see showflats packed with buyers again.

Related post:
Affordability of housing in Singapore.

Singapore residential sector to see soft landing. Shares in CapitalMalls Asia have jumped nearly 32% this year, while CapitaLand rose 22% and Keppel Land is up nearly 39%.
Tuesday, 19 June 2012

© 2012 - The Edge Singapore