SPH REIT - CGS-CIMB Research 2022-04-01: Recovery Priced In

SPH REIT - Recovery Priced In

SPH REIT (SGX:SK6U)

SPH REIT (SGX:SK6U)’s 1HFY22 (Sep 2021 to Feb 2022) revenue grew 1.2% y-o-y to S$141.6m and NPI rose 0.4% y-o-y to S$105.3m. NPI grew more slowly than revenue due to the increase in electricity rates. 1HFY22 distributable income increased 10.8% y-o-y. Consequently, SPH REIT's 1HFY22 DPU increased by 9.8% to S$0.0268, in line at 50.8% of our FY22 DPU forecast.
SPH REIT’s gearing improved slightly from 30.3% in FY21 to 30.1% in 1HFY22, aided by higher asset valuations.
We expect better operating environment on easing COVID-19 restrictions. But market seems to have priced in a recovery.
SPH REIT is trading at 5.4% DPU yield, near its 5-year average of 5.3%. Downgrade from Add to HOLD.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-01

Read also CGS-CIMB's most recent report:
2022-10-10 SPH REIT - Tenant Sales Normalizing.

Previous report by CGS-CIMB:
2022-07-07 SPH REIT - Awaiting More Catalysts.

Price targets by other brokers at SPH REIT Target Prices.
Listing of research reports at SPH REIT Analyst Reports.