3 Things That Investors Should Know About Singapore Press Holdings Limited Now

Singapore Press Holdings Limited (SGX: T39), or SPH in short, is a publisher of major newspapers in Singapore such as The Straits Times, The Business Times, Berita Harian, Lianhe Zaobao, and more.

It is also in the real estate business and has interests in other activities such as events management and online car portals. As part of the firm’s real estate activities, it is the majority owner and manager of SPH REIT (SGX: SK6U), a real estate investment trust which owns retail malls in Singapore.

Investors in the company, or those with an interest, may want to know the following three things about SPH’s business:

1. Changes in its revenue and net profit

Source: S&P Global Market Intelligence

The table above is a quick overview of the revenue and net profit of SPH for its last five fiscal years. There’s an obvious trend here – a downward one.

Since FY2012 (fiscal year ended 31 August 2012), SPH’s revenue has declined by a total of 12% while its net profit has dropped by 54%.

2. Its dividend history

At SPH’s current share price, the company has a trailing dividend yield of 4.8% based on its trailing dividend of S$0.18 per share. That yield is higher than the market average. Moreover, the company has been paying an annual dividend without fail over its last 10 fiscal years.

But, the company’s trailing dividend is actually higher than its trailing earnings per share of S$0.16. That being said, SPH does have S$1.35 billion in cash and investments, which outweigh its total borrowings of S$1.3 billion.

3. Its property business

The company’s Property business segment has been generating stable income. In fact, revenue for the property segment was up by 4.6% in FY2016 while the occupancy rate for SPH REIT’s portfolio is actually 100%.

The company’s media business may be hurting, but there are bright sparks in other areas too.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.