Singapore Press Holdings (SPH)

[viruskbs]

The last thing shareholders want to know is sph announced that the plan for reit is not feasible. But still its possible.

Vested.

As usual you cannot predict market.

For me this news was downer.

Property is too hot & govt is trying to cool it down.
So any entry into REIT at this time is not a prudent thing.

It may also mean SPH is cash strapped & wants to unlock some hidden cash. so that they may be able to keep on giving dividends to shareholders.
I would put a big sell on SPH.
not vested.

[AlphaQuant]

It may also mean SPH is cash strapped & wants to unlock some hidden cash. so that they may be able to keep on giving dividends to shareholders.
I would put a big sell on SPH.
not vested.

SPH cash strapped??? mate u should take a serious look at their balance sheet...

personally i dun like the move, but i think lee boon yang is doing the right stuff while the REIT market is super hot. do a reit, dump the paragon+clementi malls inside, retain 30% of it after the listing and enjoy the monetisation off insane valuations, enjoy management fees albeit get a reduced income distribution.

[a74henry]

A REIT is beneficial for shareholders, the banks and the SGX.
SPH will realise the market value of its properties and give SPH another income generator on top of its events and media.

Banks get to earn a fee for arranging the REIT.

SGX gets to have an additional counter that pays listing fees, etc.

Blue Chips including SPH taking a correction mode today.

[CityFarmer]

A REIT is beneficial for shareholders, the banks and the SGX.
SPH will realise the market value of its properties and give SPH another income generator on top of its events and media.

Banks get to earn a fee for arranging the REIT.

SGX gets to have an additional counter that pays listing fees, etc.

Blue Chips including SPH taking a correction mode today.

I agreed partially.

"Banks get to earn a fee for arranging the REIT."
Yes, who will pay for it? SPH shareholder will. How much? Base on very conservative underwriting fee of 1%, it is more than S$30 mil.

"SGX gets to have an additional counter that pays listing fees, etc. "
Yes, who will pay for it? SPH shareholder will pay indirectly, by owning the REIT. How much? Well, it can easily up to a mil per year.

"SPH will realise the market value of its properties and give SPH another income generator on top of its events and media."
Partially agree. The REIT will not give another income generator, but will replace the income from existing properties segment. In fact the income will be less, depending on the stake retained.

SPH will pay two of the three points, and get less from the remaining point. So do you think it is still beneficial for SPH shareholder?

[kbl]

A Reit is like a *Hair Cut*

[viruskbs]

A REIT is beneficial for shareholders, the banks and the SGX.
SPH will realise the market value of its properties and give SPH another income generator on top of its events and media.

Banks get to earn a fee for arranging the REIT.

SGX gets to have an additional counter that pays listing fees, etc.

Blue Chips including SPH taking a correction mode today.

I agreed partially.

"Banks get to earn a fee for arranging the REIT."
Yes, who will pay for it? SPH shareholder will. How much? Base on very conservative underwriting fee of 1%, it is more than S$30 mil.

"SGX gets to have an additional counter that pays listing fees, etc. "
Yes, who will pay for it? SPH shareholder will pay indirectly, by owning the REIT. How much? Well, it can easily up to a mil per year.

"SPH will realise the market value of its properties and give SPH another income generator on top of its events and media."
Partially agree. The REIT will not give another income generator, but will replace the income from existing properties segment. In fact the income will be less, depending on the stake retained.

SPH will pay two of the three points, and get less from the remaining point. So do you think it is still beneficial for SPH shareholder?

I bow to you!

I think SPH is putting a REIT coz it is HOT. i dont see any logical reason why a news company should dabble in property or a REIT.

This REIT is not RIGHT for SPH.

[a74henry]

A REIT is beneficial for shareholders, the banks and the SGX.
SPH will realise the market value of its properties and give SPH another income generator on top of its events and media.

Banks get to earn a fee for arranging the REIT.

SGX gets to have an additional counter that pays listing fees, etc.

Blue Chips including SPH taking a correction mode today.

I agreed partially.

"Banks get to earn a fee for arranging the REIT."
Yes, who will pay for it? SPH shareholder will. How much? Base on very conservative underwriting fee of 1%, it is more than S$30 mil.

"SGX gets to have an additional counter that pays listing fees, etc. "
Yes, who will pay for it? SPH shareholder will pay indirectly, by owning the REIT. How much? Well, it can easily up to a mil per year.

"SPH will realise the market value of its properties and give SPH another income generator on top of its events and media."
Partially agree. The REIT will not give another income generator, but will replace the income from existing properties segment. In fact the income will be less, depending on the stake retained.

SPH will pay two of the three points, and get less from the remaining point. So do you think it is still beneficial for SPH shareholder?

I disagree. The people who are paying are the REIT owners not the SPH shareholders.

SPH shareholders will be enjoying the higher capital appreciation from divesting these assets into a REIT. Hopefully, higher dividend too.

[CityFarmer]

I disagree. The people who are paying are the REIT owners not the SPH shareholders.

SPH shareholders will be enjoying the higher capital appreciation from divesting these assets into a REIT. Hopefully, higher dividend too.

Higher capital appreciation? You mean fair value gain or NAV appreciation. It does not contribute to NPI, or the most important the DPU

[viruskbs]

A REIT is beneficial for shareholders, the banks and the SGX.
SPH will realise the market value of its properties and give SPH another income generator on top of its events and media.

Banks get to earn a fee for arranging the REIT.

SGX gets to have an additional counter that pays listing fees, etc.

Blue Chips including SPH taking a correction mode today.

I agreed partially.

"Banks get to earn a fee for arranging the REIT."
Yes, who will pay for it? SPH shareholder will. How much? Base on very conservative underwriting fee of 1%, it is more than S$30 mil.

"SGX gets to have an additional counter that pays listing fees, etc. "
Yes, who will pay for it? SPH shareholder will pay indirectly, by owning the REIT. How much? Well, it can easily up to a mil per year.

"SPH will realise the market value of its properties and give SPH another income generator on top of its events and media."
Partially agree. The REIT will not give another income generator, but will replace the income from existing properties segment. In fact the income will be less, depending on the stake retained.

SPH will pay two of the three points, and get less from the remaining point. So do you think it is still beneficial for SPH shareholder?

I disagree. The people who are paying are the REIT owners not the SPH shareholders.

SPH shareholders will be enjoying the higher capital appreciation from divesting these assets into a REIT. Hopefully, higher dividend too.

I dont get it. How does SPH shareholder gets benefits from a SPH REIT if he has not invested in it. What I get from the news & my minimal knowledge of financial & REIT structure is that you need to have some investment in that particular REIT if you want to get returns. I dont think SPH share holders will get automatic holding in this proposed REIT. But the Funds of shareholders will be used in the legal processes preceding the formation of the REIT.

In future when this supposed REIT will give dividends Then SPH will be paid some according to there holdings & which shareholders are thinking will be channeled over to them. A fortuitous thinking with lots of suppositions.

So all this exercise is to get more dividend for the management & share holders & to hold the price of the share.

Going back to the basics & putting my Warren Buffet cap on, how is it going to make the company grow. All this activity is not adding anything to its core business.

It makes me wonder why should I ever invest in this stock.

No wonder the standards of Journalism in singapore are so low.

[a74henry]

How does SPH shareholder gets benefits from a SPH REIT if he has not invested in it?

To answer you, let me quote an example Freight Links which has Sabana REIT units. As a result of more professional team managing the REIT, Freight Links enjoy better profitability. Does this translate to better dividend? As I am not a shareholder, can Freight Links shareholders enlighten me?

I agree that all this activity is not adding anything to its core business but is adding to its future business.

Your investment has not gone down the drain. SPH yields a reasonable dividend.

(Vested)