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2 Key Slides from SPH REIT’s Latest Earnings Report Investors Should See

Credit: SPH REIT Management Pte Ltd.

SPH REIT  (SGX:SK6U) held its fiscal second quarter earnings briefing in April.

As a brief background, the real estate investment trust (REIT) is an owner of two retail malls in Singapore, namely Paragon and Clementi Mall. Singapore Press Holdings Limited  (SGX: T39) is its sponsor, manager, and majority owner.

SPH REIT covered a range of topics during the briefing. Here are two slides that may be of interest to investors.

Strategic focus

SPH REIT is focused on providing unitholders with stable and regular distributions. To achieve that, it has a multi-pronged strategy to grow.


Source: SPH REIT’s earnings presentation

Susan Leng, the chief executive of SPH REIT’s manager, said that the REIT will focus on proactive asset management and AEIs (asset enhancement initiatives) to grow. Leng also touched on Seletar Mall, a potential acquisition target in the future:

“The Seletar Mall, which the sponsor has given the right of first refusal to SPH REIT, has opened for trading on 28 November 2014 and achieved 100% occupancy since December 2014.”

Moving on, Leng talked about the industry’s outlook.


Source: SPH REIT’s earnings presentation

Singapore’s economic growth in 2016 was in the same range as 2015. Leng added that tourist arrivals grew 7.7% during the year while tourism receipts increased by 13.9% to $24.8 billion.

On the REIT’s portfolio, she highlighted how Paragon and Clementi Mall are positioned:

“Paragon’s established positioning as a premier upscale mall is well-located in the heart of Orchard road has continued to attract new concepts and maintain steady footfall.

The Clementi Mall is a suburban mall which caters to the day-to-day essentials to an established residential market in its immediate catchment. It is strategically located in the transportation hub in the Clementi town and continues to attract high footfall.”

On another point, Leng said that SPH REIT’s malls will have to remain relevant to both shoppers and their tenants. She said:

“We will continue to create a tenancy mix that will strengthen the positioning of each mall and also introduce fresh concepts to enhance shoppers experience.”

The two slides shared above provide insight on how SPH REIT is positioning itself for the future.

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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.