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SPH REIT’s Annual Report: 29 Key Numbers Investors Should Know

Credit: SPH REIT Management Pte Ltd.

SPH REIT (SGX: S63) released its annual report earlier this month.

SPH REIT is a real estate investment trust (REIT) with two malls located in Singapore. We can learn more from SPH REIT’s annual report. With that in mind, here’re 29 key figures investors should note:

  1. As of 31 August 2016, SPH REIT has two properties with a net lettable area of 903,837 square feet (sqft), valued at $3.23 billion. Paragon, its upscale mall, has a retail space of 488,243 sqft and medical space of 223,096 sqft. Clementi Mall, a mid-market suburban mall, has a net lettable space of 192,498 sqft.  
  2. Paragon had 34.6% of its rental income from the luxury brands, mainly in the jewellery & watches segment, and 18.5% from the medical suite & office segment. It also houses Crystal Jade Golden Palace which was awarded Michelin One-Star in July this year. Clementi Mall, on the other hand, had 33.3% of its rental income from the food & beverage segment and 29.4% from the lifestyle segment.
  3. Both Paragon and Clementi Mall maintained 100% committed occupancy for the fiscal year ended 31 August 2016 (FY2016). SPH REIT has a base of 454 tenants from a wide variety of sectors. The top 10 tenants contributed 24.2% of gross rental income for the month of August 2016.
  4. For FY2016, Paragon secured a 76% retention rate for the 100 new or renewed leases. Meanwhile, Clementi Mall could only manage a 50% retention rate for its 24 new or renewed leases in FY2016. The weighted average lease expiry (WALE) was 2.3 years (by net lettable area).
  5. Let’s move on the REIT’s debt profile. SPH REIT has a gearing ratio of 25.7% and interest coverage ratio of six times. The all-in average cost of debt stood at 2.82% at the end of August this year. SPH REIT’s average term to maturity of its debt was 3.1 years. Furthermore, 85.9% of its loans are on a fixed rate basis. Investors should note that there is no debt due in FY2017, but some 38% or $320 million of its outstanding debt comes due in FY2018.
  6. SPH REIT also provided a few benchmarks for comparison on its yield. SPH REIT had a distribution yield of 5.7% at the end of August this year. The FTSE Straits Times REIT Index dividend yield was a touch higher at 5.8% while the Straits Times Index (SGX: ^STI) dividend yield was 4%.  

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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.