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There has been so much speculation since SPH was taken private few years ago so 98c + 2.33c comes to just above $1 for shareholders to exit. This feels quite decent, got any other kakis who might have thoughts?
desmlee ( Date: 11-Feb-2025 09:30) Posted:
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https://stockevents.app/en/event/dividends/38456950
https://www.invest-alpha.sg/view& id=518
quite decent la, 1.07x p/nav all cash offer. still can take the final divs
Good
CUSCADEN PEAK AND PARAGON REIT JOINTLY ANNOUNCE PROPOSED SCHEME OF ARRANGEMENT TO PRIVATISE PARAGON REIT -98cts per unit
https://links.sgx.com/1.0.0/corporate-announcements/035NUIV7JXSG06FM/832663_Privatisation%20of%20PGNREIT_Joint%20Press%20Release.pdf
FY24 results
https://links.sgx.com/1.0.0/corporate-announcements/6XMOYRK4HLD81L8L/832658_PARAGON%20REIT%20-%20Presentation%20Deck%20FY24.pdf
https://links.sgx.com/1.0.0/corporate-announcements/035NUIV7JXSG06FM/832663_Privatisation%20of%20PGNREIT_Joint%20Press%20Release.pdf
FY24 results
https://links.sgx.com/1.0.0/corporate-announcements/6XMOYRK4HLD81L8L/832658_PARAGON%20REIT%20-%20Presentation%20Deck%20FY24.pdf
Purchaser exercises call option to divest Paragon REIT&rsquo s Figtree Grove
The call option to divest Figtree Grove Shopping Centre under Paragon REIT has been exercised by the purchaser, with a deposit of about A$9.6 million ($8.14 million) being paid to Figtree Trust according to a filing dated Jan 14.
This comes after Paragon REIT announced that it entered into a put and call option to divest Figtree Grove Shopping Centre at Wollongong, Australia on Nov 22, 2024 for A$192 million, a 5% premium above valuation.
The purchaser is an &ldquo unrelated party&rdquo , the release notes.
The release adds that the balance of divestment consideration will be paid by the purchaser in cash on completion of the divestment, which is expected to take place by 1QFY2025.
Upon completion, Paragon REIT will have three retail properties, Paragon, Clementi Mall and Westfield Marion. Singapore would account for 83% of net property income (NPI) and 87% of AUM.
UOB Kay Hian said on Dec 4 that Paragon REIT&rsquo s ongoing divestment of assets could be a precursor to a M& A.
In June 2024, Paragon REIT divested Rail Mall for $78.5 million, above its last valuation and the purchase price of $63.2 million.
UOBKH says Paragon REIT could be subject of M& A
UOB Kay Hian (UOBKH) introduces the idea that Paragon REIT (former SPH REIT) has been divesting assets, and this could be a precursor to an M& A.
On Nov 22, Paragon REIT entered into a put and call option to divest Figtree 5F4 Grove Shopping Centre at Wollongong, Australia for A$192 million (5% premium above valuation). Pro forma 2023 DPU is expected to drop 1.8% to 4.80 cents post-divestment. Pro forma NAV per unit as of end-Dec 2023 is expected to fall 2.2% to $0.90.
The divestment is expected to be completed in 1Q2025. Upon completion, Paragon REIT will have three retail properties, Paragon, Clementi Mall and Westfield Marion. Singapore would account for 83% of net property income (NPI) and 87% of AUM.
The sale price of A$192 million for Figtree Grove Shopping Centre is above the independent valuation of the property of A$183.0 million as at Oct 31. The then SPH REIT acquired Figtree Shopping Centre for A$175.1 million in 2018. At the time the purchase price translated into $175.1 million. As a result, there is likely to be a loss in translation.
In June this year, Paragon REIT divested Rail Mall for $78.5 million, above its last valuation and the purchase price of $63.2 million.
" Valuation of Singapore assets increased 3.4% or $116 million due to improved performance from Paragon and Clementi Mall. Valuation for Westfield Marion declined 5.3% to A$580 million as capitalisation rate expanded 25bp to 6.25%. NAV per unit increased 3.3% to $0.94," observes UOBKH.
The local broker adds that the Singapore properties continue to perform well. Gross revenue and NPI increased 3% and 4.5% y-o-y respectively in 1HFY2024 for the two Singapore properties. NPI margin improved 1.1 ppt y-o-y to 75.2%. NPI from Paragon and Clementi Mall grew 6.3% and 11.1% y-o-y respectively.
" New sponsor Cuscaden Peak is a consortium made up of Hotel Properties , Mapletree Investments and CLA Real Estate Holdings. Large-cap S-REITs within the consortium, such as CapitaLand Integrated Commercial Trust C38U (CICT) and Mapletree Pan Asia Commercial Trust N2IU (MPACT), could potentially make an offer to acquire Paragon REIT," UOBKH suggests.
Other market observers have indicated that the REIT may have received offers for Paragon on Orchard Road.
Whatever the case, UOBKH says the share price catalyst is likely to be continued recovery in visitor arrivals and tourism receipts. Resilient domestic consumption, and limited supply of retail space along Orchard Road are additional catalysts.
Otherwise, the unit price is fairly valued since Paragon REIT is trading at post-divestment pro forma DPU yield of 5.49%. UOBKH does not have a rating for the REIT.
Figtree Grove sale is ' early Christmas gift' for Paragon REIT unitholders
DBS Group Research has maintained its " buy" call and $1.05 target price on Paragon REIT, following the divestment of its 85%-held Sydney mall Figtree 5F4 Grove for A$192 million.
The sale, to an unrelated party, is at a 5% premium over its book value, and will give Paragon REIT a " fair" exit yield of 5.5%, says DBS in its Nov 22, calling the deal " an early Christmas gift" .
" We are pleasantly surprised that the manager is able to divest the mall at a premium to book value and at a price that is close to its purchase price back in 2018, even after overcoming Covid disruption and a rise in borrowing costs in Australia," says DBS.
Following the sale of Figtree Grove, Paragon REIT' s portfolio will be " anchored largely" here in Singapore, with its crown jewel the Paragon Mall and Clementi Mall accounting for 83% of its net property income. Paragon REIT' s third asset is its 50% stake in Westfield Marion in Adelaide.
If Paragon REIT pays down the loan on Figtree of some A$105 million, DBS estimates that its unit holders will stand to receive proceeds from the divestment a distribution of 1.6 cents per share, or $47 million, says DBS, taking reference from a similar move when the REIT completed the sale of Rail Mall in August.
The divestment is slated for completion sometime in 1QFY25 ending March.
DYDD
Paragon REIT to Redeem SG$300 Million Worth of Bonds
11 Jul 2024
10:48 PM EDT, 07/10/2024 (MT Newswires) -- Paragon REIT (SGX:SK6U) plans to fully redeem SG$300 million worth of 4.10 subordinated perpetual securities on the redemption date of Aug. 3.
Following redemption, the said securities will be canceled and delisted from the Singapore bourse, according to a filing with the Singapore Exchange on Wednesday.
Paragon REIT to Redeem SG$300 Million Worth of Bonds
11 Jul 2024
10:48 PM EDT, 07/10/2024 (MT Newswires) -- Paragon REIT (SGX:SK6U) plans to fully redeem SG$300 million worth of 4.10 subordinated perpetual securities on the redemption date of Aug. 3.
Following redemption, the said securities will be canceled and delisted from the Singapore bourse, according to a filing with the Singapore Exchange on Wednesday.
Paragon Reit to divest The Rail Mall for S$78.5 million
Divestment to be completed in H2 2024, and is not expected to affect net asset value or distribution per unit for FY2024
PARAGON Real Estate Investment Trust : SK6U +0.6%has entered into a sale-and-purchase agreement for the divestment of The Rail Mall for a cash consideration of S$78.5 million.
The Reit manager said in a bourse filing on Thursday (Jun 20) that the price was arrived at on a willing-buyer, willing-seller basis, taking into account the projected net property income of the Mall, the retail market outlook, and the property yield.
The buyer was not named in the announcement, but The Business Times previously reported that it understood it to be a private investor.
The divestment, expected to be completed in the second half of 2024, is part of the Reit manager&rsquo s portfolio management strategy and &ldquo in line with its objective to unlock value in Paragon Reit&rsquo s portfolio&rdquo .
The divestment is not expected to have a material impact on the Reit&rsquo s net asset value and distribution per unit for the financial year ending Dec 31, 2024.
Proceeds from the divestment will be used to pare down outstanding debt obligations, finance potential acquisitions and asset-enhancement initiatives, and/or make distributions to unitholders, said the manager.
The Rail Mall, located along Upper Bukit Timah Road, has nearly 50,000 square feet (sq ft) of net lettable area, and sits on a site sold by the state with a 99-year leasehold tenure from March 1947.
This leaves a balance of 21 years and eight months. The property was valued at S$62 million as at Dec 31, 2023.
Paragon REIT divests The Rail Mall for SGD78.5 million
JUN 20, 2024Paragon REIT is divesting its asset known as The Rail Mall for SGD78.5 million.
The asset was acquired by the REIT, which was then known as SPH REIT, for SGD63.24 million in June 2018.
It consists of 43 shop units with a total net lettable area of 49,886 square feet.
Good outcome.
Paragon Reit declines sponsor Cuscaden Peak Investments&rsquo offer to buy The Seletar Mall
PARAGON Reit : SK6U 0% has declined an offer from its sponsor, Cuscaden Peak Investments, to acquire The Seletar Mall for S$550 million.
On Thursday (Feb 29), the real estate investment trust&rsquo s manager said the offer was made on the basis of its right of first refusal.
The manager said: &ldquo The trustee and the manager have considered the offer, and are of the view that acquiring The Seletar Mall based on the proposed terms set out in the offer would not be in the best interests of Paragon Reit.&rdquo
The transaction would be dilutive to the Reit&rsquo s distribution per unit, Paragon Reit&rsquo s manager said. It will continue to explore opportunities for the acquisition of yield-accretive assets which are in line with its investment criteria and strategy.
The Business Times reported in January that Allgreen Properties, part of the Kuok Group, was in exclusive due diligence to buy The Seletar Mall.
Word in the market was that the price could be about S$520 million.
Located next to Fernvale LRT station in the Sengkang West area, The Seletar Mall is on a site with a 99-year leasehold tenure from 2012 this leaves a balance of about 87 years.
FairPrice Finest, Shaw Theatres, Popular Bookstore and Harvey Norman are among the tenants at the mall, which has a total net lettable area of about 189,500 square feet.
The mall, which opened in November 2014, has six levels of retail space, including two basement floors. Another three lower basement floors are for car parking spaces.
The suburban shopping centre in Sengkang is supported by a strong customer catchment from the surrounding Housing and Development Board flats as well as private condos and landed homes a short distance away.
The Seletar Mall is owned by Cuscaden Peak Investments and United Engineers.
Cuscaden Peak Investments &ndash formerly known as Singapore Press Holdings before its privatisation in May 2022 &ndash is a wholly owned subsidiary of Cuscaden Peak, a consortium made up of three shareholders: Hotel Properties Ltd, Mapletree Investments and CLA Real Estate Holdings.
Paragon Reit posts 1.9% lower H2 DPU of S$0.026
PARAGON Real Estate Investment Trust&rsquo s (Reit) distribution per unit (DPU) for the second half ended December 2023 was down 1.9 per cent on the year to S$0.026 from S$0.0265 previously.
This was despite higher gross revenue which grew 3 per cent to S$145.8 million from S$141.6 million, while net property income (NPI) rose 3.3 per cent to S$109 million from S$105.5 million a year prior.
The latest H2 distribution is expected to be paid on Mar 22, 2024.
It translates to a FY2023 DPU of S$0.0502, which is 9.1 per cent lower than the previous year&rsquo s DPU of S$0.0552 based on comparative figures which were prorated in view of Paragon Reit&rsquo s change in its financial year-end from Aug 31, 2022, to Dec 31, 2022.
Paragon Reit&rsquo s manager on Monday (Feb 5) attributed the lower overall DPU to rising interest cost.
Revenue for the full year was up 1.8 per cent year on year to S$288.9 million from S$283.8 million, while NPI gained 1.7 per cent to S$215.1 million from S$211.5 million in FY2022&rsquo s comparative figures.
As at Dec 31, 2023, the Reit&rsquo s portfolio occupancy stood at 98.1 per cent with a weighted average lease expiry (Wale) of 5.1 years by net lettable area and three-year Wale by gross rental income.
Its Singapore portfolio recorded a 2 per cent year-on-year decline in tenant sales for FY2023, which the manager said was &ldquo marginal&rdquo thanks to low unemployment rates and a resilient labour market, with a recovery in the retail sector supported by the resumption of international travel.
In Australia, tenant sales across the portfolio grew 7 per cent year on year as total retail sales grew 2.8 per cent in New South Wales, and 5.1 per cent in South Australia over the 12-month period.
The manager said retail sector fundamentals in Australia &ldquo remained robust due to low unemployment rates, despite inflationary pressures impacting cost of living&rdquo .
The valuation of Paragon Reit&rsquo s Singapore assets as at end-2023 were 1.9 per cent or S$62.3 million higher at S$3.4 billion, with capitalisation rates of all of the Reit&rsquo s three assets remaining unchanged.
Its assets in Australia, however, experienced a fair valuation decline by 5.6 per cent or A$47.5 million (S$41.5 million) to A$799.5 million as a result of capitalisation rate expansions.
The Reit manager expects &ldquo resilient demand and labour market conditions, coupled with the potential upside of an increase in international travel&rdquo , to support a continued recovery in tenant leasing sentiments and lead to improved performances across its Singapore and Australia assets in FY2024.
Susan Leng, chief executive of the manager, said the Reit&rsquo s improved portfolio rental reversion to 6.3 per cent for FY2023 &ndash compared to -4.1 per cent for the 16 months ended December 2022 &ndash reflected a stronger demand as well as improved sentiments and outlook from retailers.
&ldquo We continue to focus on maximising the value of our quality assets by capitalising on the retail recovery in the form of positive rental reversion, maintaining prudent cost management and adopting innovative technology solutions to streamline our operations.&rdquo
Anyone going to the AGM this afternoon? Worth going to the AGM?
SPH Reit will rename as Paragon Reit from January 2023
SPH Real Estate Investment Trust (Reit) : SK6U -1.11% will be renamed to Paragon Reit as the name change will better reflect the trust&rsquo s vision and mission to capture unique opportunities in the Asia-Pacific retail landscape, the Reit manager said on Thursday (Dec 29).
The names of its security, counter and manager &ndash along with the Reit&rsquo s logo and website &ndash will reflect the new name with effect from 9 am on Jan 3, 2023.
The Reit manager added that the trust will be &ldquo bolstered by the deep real estate sector knowledge and strong relationships&rdquo of its sponsor, Cuscaden Peak Investments.
Cuscaden Peak Investments was formerly known as Singapore Press Holdings, and is a wholly-owned subsidiary of Cuscaden Peak. Cuscaden Peak is a consortium comprising tycoon Ong Beng Seng&rsquo s Hotel Properties Limited, and Temasek-linked CLA Real Estate Holdings and Mapletree.
The Reit&rsquo s existing counter code &ndash &ldquo SK6U&rdquo &ndash on the Singapore Exchange will remain unchanged.
It will also continue to be led by the current management team, retain its investment mandate, and manage its existing portfolio of assets.
SPH Reit&rsquo s portfolio includes its anchor asset, Paragon, along with The Clementi Mall and The Rail Mall. It has two more such facilities in Australia.
&ldquo Our change in name underscores our mission to be the landlord of choice, and to provide our unitholders with sustainable long-term growth,&rdquo said Leong Horn Kee, chairman of the Reit.
Analysts positive on SPH Reit&rsquo s near-term prospects as tenant sales recover
CGS-CIMB and DBS Group Research have maintained their respective &ldquo hold&rdquo calls on SPH Reit while noting improved operating metrics and tenant sentiment as well as recovering portfolio reversions.
This comes after the real estate investment trust (Reit) reported a 2.2 per cent rise in distribution per unit (DPU) for the 12 months ended August 2022, boosted by increased footfall and subsequent tenant sales recovery at its Singapore assets.
In a report on Monday (Oct 10), analysts of CGS-CIMB highlighted an improvement in FY2022 portfolio reversions compared to the previous year despite remaining negative.
They think SPH Reit&rsquo s portfolio could start showing positive reversions going forward, noting improved valuations for both its Singapore and Australian assets due to higher rental income and stable cap rates.
The Reit could also potentially improve asset efficiency under the direction of its new property-led sponsor Cuscaden Peak, they added.
CGS-CIMB has tweaked its FY2022 to FY2024 estimates for SPH Reit by 0.1 per cent to 33.7 per cent to factor in a change in financial year end as well as raised rental growth assumptions, resulting in a slightly higher price target of S$0.96 on the Reit compared to S$0.95 previously.
Meanwhile, DBS Group Research continues to like SPH Reit as one of the key beneficiaries of Singapore&rsquo s reopening &ndash particularly its anchor asset Paragon Mall, where tenant sales for FY2022 have reached about 89 per cent of 2019 levels.
Its analysts also believe there are &ldquo good reasons&rdquo to expect a festive boost to the Reit&rsquo s operating metrics in the first quarter ending December 2022 alongside strong monthly traction of tourist arrivals to Singapore.
&ldquo Indonesian and Chinese spenders are the two titans when it comes to tourist spending at Paragon, making up about 16 per cent of mall footfall respectively. We expect developments on China&rsquo s border reopening to be a key catalyst for the stock,&rdquo they said.
The research house&rsquo s price target on the Reit remains unchanged at S$0.96.
At its latest closing price of S$0.895 on Monday the counter trades at an &ldquo compelling yield&rdquo of 6.1 per cent on a forward basis and below book at 0.97 times price-to-book, noted its analysts.
They also like SPH Reit for its low gearing, resilient position in comparison to its peers, and &ldquo diminishing gap&rdquo on negative reversions based on the Reit&rsquo s latest set of full-year results.
&ldquo SPH Reit stands as one of the lowest geared within the S-Reits sector with an aggregate leverage of 30 per cent (as at end-August). With an estimated 70 per cent of borrowings on fixed interest rate, a 10 basis points increase in interest rate (assuming 100 per cent floating debt) will translate to a 0.5 per cent impact on DPU,&rdquo said the analysts.
SPH Reit posts 2.2% rise in latest 12-month DPU on retail recovery
STRONGER sentiment in the retail sector lifted the distribution per unit (DPU) of SPH Reit : SK6U +1.14% to 5.52 Singapore cents for the 12 months ended Aug 31 (12M FY2022), up 2.2 per cent from the previous year.
As previously announced, the real estate investment trust (Reit) is changing its financial year end from Aug 31 to Dec 31, resulting in a 16-month FY2022. Distributions for the four months ending December will be declared in February 2023.
Gross revenue for 12M FY2022 came in 1.7 per cent higher at S$281.9 million, while net property income (NPI) grew 3.5 per cent to S$209.7 million. The portfolio occupancy rate stood at 97.5 per cent.
SPH Reit also posted an improvement in rental reversions, with a -2.8 per cent portfolio rental reversion rate in 12M FY2022, compared to -8.4 per cent the previous year. Weighted average lease expiry stood at 5.3 years by net lettable area and three years by gross rental income.
The Reit&rsquo s performance was boosted by an 8.8 per cent increase in footfall at its Singapore assets &ndash with Paragon recording a 16.4 per cent increase in footfall to 13.3 million, and The Clementi Mall&rsquo s footfall rising 15.9 per cent to 17.7 million. As a result, tenant sales for Paragon and The Clementi Mall improved by 25.6 per cent and 8.8 per cent respectively.
Sentiment was however weaker in Australia, where footfall dropped 3.6 per cent. In particular, the Figtree Grove Shopping Centre in New South Wales was affected by a lockdown from June to October 2021, leading to a 9 per cent drop in footfall.
Nevertheless, SPH Reit&rsquo s other Australian asset, Westfield Marion in Adelaide, was spared from lockdowns and saw a smaller 1.7 per cent fall in footfall.
For the six-month period ending August, SPH Reit posted a 4.1 per cent fall in DPU to 2.84 Singapore cents. This was even as gross revenue for the period rose 2.2 per cent to S$140.2 million, while NPI was up 6.8 per cent to S$104.4 million.
&ldquo The return to normalcy is evident in Singapore and Australia, resulting in better performance in footfall as well as tenant sales, particularly at our Singapore assets,&rdquo said Susan Leng, CEO of SPH Reit.
Looking ahead, SPH Reit said that it would maintain a disciplined approach to capital management. As at end-August, the proportion of fixed debt is 71 per cent, with an average cost of debt of 1.77 per cent. The Reit has S$1.3 billion in borrowings at a gearing ratio of 30 per cent and a weighted average term to maturity of 2.5 years.
Dpu dropped on a year-on-year basis from 1.58c payout for 4QFY2021 to 1.39c (4QFY2022), being a 12%. The Press Release and the IR Slides emphasized on the 12M FY2022 Financial performance, and made no specific mention on the current performance vs the previous year period.
And even if we factor-in an approximate 0.13 cent of 4QFY2020 distributable income deferred as allowed under COVID-19 relief measures into the 1.58c payout last year, the current 1.38c is still LOWER this time round, though a Return to normalcy took place after social distancing measures were substantially lifted in April 2022. Why is there a drop from a previous ' worse local environment' ? This environment today shld be very much better.
And there was no Notification of Results Release for this important Financial Year-end Reporting. Why is this so ?
And even if we factor-in an approximate 0.13 cent of 4QFY2020 distributable income deferred as allowed under COVID-19 relief measures into the 1.58c payout last year, the current 1.38c is still LOWER this time round, though a Return to normalcy took place after social distancing measures were substantially lifted in April 2022. Why is there a drop from a previous ' worse local environment' ? This environment today shld be very much better.
And there was no Notification of Results Release for this important Financial Year-end Reporting. Why is this so ?