SPH REIT’s Business: 3 Things Investors Might Not Know, But Ought To

SPH REIT (SGX: SK6U) is a real estate investment trust (REIT) focused around properties used mainly for retail purposes in Asia Pacific.

The REIT is an owner of two retail real estate properties in Singapore, namely Paragon and Clementi Mall . SPH REIT’s sponsor and main shareholder is Singapore Press Holdings Limited (SGX: T39).

Here are three pieces of useful information about the REIT that many investors may not be aware of:

  1. SPH REIT may be focused on retail malls, but a closer look reveals a high concentration on two particular segments: luxury brands, jewellery & watches and medical suite / office. The former makes up 28% of the REIT’s trade mix by gross rental income. The latter makes up 15%.
  2. Paragon has close to 490,000 square feet (sqft) of retail space and over 220,000 sqft of medical suite / office space. Clementi Mall has above 190,000 sqft of retail space. That’s not the only difference, Paragon attracted visitorship of 18.3 million for the fiscal year ended 31 August 2016 (FY2016). Meanwhile Clementi Mall netted 30 million visitors during the same timeframe.
  3. The visitorship may be higher at Clementi Mall, but Paragon is by far the biggest contributor to the REIT. Paragon netted $170 million in gross revenue and $132 million in net property income (NPI). On the other side, Clementi Mall accounted for $39 million in gross revenue and $28.6 million in NPI.  

If you like to learn more about SPH REIT, click here and here.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.