Tuesday, August 27, 2013

SPH REIT: Defensive attributes priced in (AM)

SPH REIT: Defensive attributes priced in
(Initiation - HOLD, FV: S$0.870)
SPH REIT is a Singapore-based real estate investment trust established principally to invest in a portfolio of income-producing real estate which is used primarily for retail purposes in Asia-Pacific. SPH REIT’s portfolio consists of two retail properties, namely Paragon and the Clementi Mall. Distributions to Unitholders are on a quarterly basis.

Our investment thesis for SPH REIT is centred on its defensive growth prospects. We like SPH REIT for the quality of its retail assets, strong sponsor backing as well as its exposure to the healthcare services sector.


Portfolio quality is the key. The quality of SPH REIT’s retail malls is backed by the positives of a large catchment population, strategic location and a balanced tenant mix. We particularly favor Paragon’s unique integrated medical and retail offering, and believe that its niche in this aspect would leave it strongly placed to drive rental growth. For Clementi Mall, the advantage of a wide catchment area is expected to underpin its resilience amid the impending influx of suburban retail supply.

Sufficient financial flexibility to pull the acquisition trigger. With a comfortable debt headroom of S$351mil, SPH REIT has the financial flexibility to pursue acquisition opportunities. SPH REIT’s near-term focus remains in Singapore, and it could tap on its ROFR pipeline asset to catalyze further accretion to its distributions.

Initiate HOLD with FV of S$0.87. We initiate coverage on SPH REIT with a HOLD recommendation and a DDM-derived fair value of S$0.87. From our perspective, SPH REIT’s growth prospects and its defensive characteristics are already priced in. Current valuations present limited room for capital upside while a projected FY14 yield of 5.4% pales in comparison with that of its retail peers.


Source/Extract/Excerpts/来源/转贴/摘录: AmFraser-Research,
Publish date: 27/08/13

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高估期间, 卖对, 不卖也对, 买是错的。
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Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
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